Stanbic IBTC Holdings Plc has announced that it will establish a wholly-owned fintech subsidiary, according to a recent regulatory filing.
The holdings financial service company told the Nigerian Exchange (NGX) and the investing public that it has commenced the process of seeking regulatory approvals.
Competition in the banking sector and the threat of fintech operators are forcing many banks to seek alternative earnings sources. Regulators recently approves payment solutions service provider licenses to MTN Nigeria and Airtel Africa.
Also, Standard Chartered bank announced that it is shutting down 50% of its branches to focus on digital banking in Nigeria as competition intensifies in the fintech and banking space.
According to the statement, the proposed wholly-owned financial technology subsidiary will be known as Stanbic IBTC Financial Services Limited, the Holdings stated.
The group said this is however subject to receiving all required regulatory approvals, including licensing by the Central Bank of Nigeria (CBN).
Stanbic IBTC Holding added that the new subsidiary will function primarily as a Payment Solution Service Provider (PSSP), saying the group will update the market upon completion of the regulatory approval process as well as licensing of the new subsidiary.
