Recently, the second phase of the Bankers' Committee's initiated cash-less policy, commenced in the Federal Capital Territory (FCT), Abuja, Abia, Anambra, Kano, Ogun and Rivers States. Though there were misgivings in some quarters on the Lagos pilot project, the consensus was that the project was worthwhile and should be embraced by all and sundry. Central Bank of Nigeria (CBN), which is the main driver of the policy, has relentlessly ensured the project is not derailed and it is, indeed, working assiduously with all relevant stakeholders to make success out of it.Prior to the July roll out to some more states, the apex bank had ensured the identified challenges and lapses experienced in the Lagos experiment were addressed to reasonable extent. The banks are not left out in their efforts to make the policy successfully. They have been relentless in rolling out products to serve as alternative channels to meet customers' expectations. One of the banks in the forefront is FirstBank. Recently, the bank held a product fair where its various products targeted at promoting cashless policy were on display. No doubt, the bank, through the innovative products, has contributed immensely to the success so far achieved in the policy. The Cash-less PolicyThe cash-less policy was introduced into the nation's financial landscape in January, 2012. Lagos State was first used as the pilot project and was extended to five more states and the FCT in July this year. The objectives of the policy include reduction in the level of physical cash in circulation, reduction in the huge cost associated with cash handling that is printing, storing, processing and distributing. In other words, the policy on cash-based transactions withdrawals and deposits in banks aims at reducing and not eliminating the amount of physical cash circulating in the economy, and encouraging more electronic-based transactions for payments for goods, services, transfers, etc.The policy stipulates a 'cash handling charge' on daily cash withdrawals or cash deposits that exceed N500, 000 for Individuals and N3, 000,000 for corporate bodies. One of the reasons the apex bank said the new cash policy was introduced was to drive development and modernisation of the payment system in line with the nation's goal of being amongst the top 20 economies by the year 2020. An efficient and modern payment system is positively correlated with economic development, and is a key enabler for economic growth.The policy also aims at reducing the cost of banking services including cost of credit and driving financial inclusion by providing more efficient transaction options and greater reach. It is to improve the effectiveness of monetary policy in managing inflation and driving economic growth. In addition, the cash policy aims to curb some of the negative consequences associated with the high usage of physical cash in the economy. The policy also addresses high cost of cash along the value chain - from the CBN and the banks, to corporations and traders; everyone bears the high costs associated with volume cash handling.First Bank initiativesOne of the banks in the forefront of driving the policy is FirstBank. The bank has churned out various products targeted at making it a success and met the expectations of its customers. FirstPayLink: This is FirstBank's consolidated internet payment gateway that integrates various payment gateways to merchants' websites to allow internet payments using InterSwitch, eTranzact, Visa and MasterCard cards thereby giving them the flexibility to operate online sales. It enables customers pay and purchase goods and services, regardless of where they are based.The product is integrated into a merchant's existing website after successful sign-up. Payments are made using InterSwitch, eTranzact, Visa & MasterCard and merchants are settled promptly for all payments made through the platform.It accepts payments for goods and services via merchants' website; every successful payment receives an electronic receipt with a unique reference number; buyers can choose from a wide range of payment processors including Verve, Visa, MasterCard and eTranzact and it has a secure https environment.The product targets the Small and Medium Enterprises (SMEs); insurance companies; religious institutions; educational institutions; professional bodies and customers with online stores, among others.FirstCollect: FirstCollect is FirstBank's e-Collection platform that is customisable and enables corporates receive payments for goods and services through FirstBank branches nationwide as well as other alternative channels like web and Point of Sales (POS). Corporates can monitor payments from the comforts of their office and homes and it can be integrated to the corporates' internal business application.The features include: online-real time monitoring of payments by corporate organisations; comprehensive and customizable reports; customizable input data fields; uniform capture of payment details by all bank tellers to aid account reconciliation; instant email/SMS notification on payments received and multi-currency feature. Other features are integration with organisations' core business application; customers can pay through the bank branches, ATMs POS, Web and mobile devices; competitive pricing; has data input validation and a secured https environment.There are so many benefits embedded in the product. It increases in organisations' sales collection channels; helps organisations improve service delivery to their clients, distributors and dealers; FirstBank branches serve as payment points for the client. The customers have access to over 600 FirstBank branches for sales collection; ease/convenience of payments by the merchant's customers' and there is also ease of reconciliation.The target markets include: manufacturers with large distributor chain; government institutions for revenue collection; companies that do lots of sales; fast moving consumer principals' and professional bodies and associations.FirstPay: This is FirstBanks work-flow driven automated payment solution that enables corporate customers initiate payment instructions electronically from any internet enabled computer to beneficiaries in any bank in the country. It acts as solution to corporates that have some limitations with salary payments and payment to vendors and beneficiaries. This answers their search for payment platforms that are fast, not bound by locations and are work-flow driven.The solution also has direct debit functionality suitable for the collection of insurance premiums, utility bills and distributorship schemes. It is a proven, robust and secure end-to-end e-payment and collection solution.The product is web-based; PIN/Token enabled; inter-bank transactions (debit/credit) possible; has multiple security levels and also has access and control restrictions with process authentication. It is cost effective, secure and there is https environment SMS and e-mail alerts of payments effected.Some of the benefits this product carries are instant payments to beneficiary accounts; security with multiple factor authentications; availability at all times; simplicity and convenience and it can be used for collections using the direct debit functionality.The product targets insurance companies; government Ministries, Departments and Agencies (MDAs); corporate organisations; professional bodies; educational institutions' and all organisations and companies that require bulk payments.
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