CBN, banks to save N192bn from cashless economy project

The banking industry is set to saveabout N192 billion from the ongoing payment transformation project by the Central Bank of Nigeria (CBN) and the Bankers Committee.The key aspect of the reform is a migration from cash-based transaction to cashless economy through e-payment system.Speaking at a breakfast meeting organised by the Committee of Chief Inspectors of Banks in Nigeria (CCIBN) in Lagos on Monday, the Head, Shared Services Department, CBN, Mrs Eyitope St. Matthew-Daniel, stated that the direct cost of cash management borne by the banking industry in 2009 alone was N114.5billion and was projected to reach N192billion in 2012, stressing that the burden was due largely to transactions in the economy which were largely cash-based.St. Matthew-Daniel acknowledged that cash related transactions currently represent about 99 per cent of customers' activities in banks, regretting that unlike what obtained in developed economies, Nigerians relied heavily on cash to make payments for their purchases.She noted that the transformation of the payments system was a major plank of the shared services programme, with the target of significantly reducing costs in the banking industry by a minimum of 30per cent.She listed other elements of the programme as centralised back office operations and the alignment of information technology standards across the industry.'The successful implementation of these initiatives will impact positively on industry cost structure, which banks are expected to ultimately pass on to their customers by way of lower charges,' she said.
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