Stanbic IBTC Applies to Regulators for Fintech Subdidiary

Stanbic IBTC Applies to Regulators for Fintech Subdidiary

By Chuks Emele

Stanbic IBTC has applied for regulatory approval to set up a fintech subsidiary to specialize in payments.

The unit will be known as Stanbic IBTC Financial Services Limited, the bank said in a filing at the Nigerian Exchange.

When approved, “the new subsidiary will function primarily as a Payment Solution Service Provider,” Stanbic IBTC said in the statement. “Accordingly, Stanbic IBTC will update the market upon completion of the regulatory approval process as well as licensing of the new subsidiary.”

Nigeria’s financial system has in recent years been roiled by the activities of new financial services providers leveraging on technology to provide services from payments, to lending and investments that were traditionally handled by banks.

Further signs of imminent changes in the sector emerged with the licensing of two top mobile-phone companies, MTN Nigeria and Airtel Africa to function as payment service providers,  an area traditionally given by banks.