In a move expected to significantly alter electronic payment system in an unprecedented manner, and improve the lifestyle of the average Nigerian, Ecobank Nigeria Plc, a dominant franchise of Africa�s leading regional bank, Ecobank Group, has introduced the first credit card in Nigeria called Ecobank Naira Credit Card. The credit card is coming two years after Ecobank pioneered the introduction of MasterCard in Nigeria, a dollar denominated credit card.
Speaking at the media launch of the Card last week, Head Card Business, Ecobank, Mr. Olu Bajomo noted that the Ecobank Credit Card underscores the era of true freedom in Nigeria �s financial history. It seeks to reward credit worthy and honest Nigerians to achieve their personal and professional aspirations whilst responding to the call by many Nigerian�s for a secure credit card capable of enabling business transactions in Naira.
On the notable features of the card, Bajomo confirmed that, the naira credit card will be issued In categories of Classic, Premium, Gold and Platinum with the Platinum having the highest limit of N5 million. The class of card offered to a customer will be determined principally by the applicant�s income. This is to ensure that all segments of the Nigerian market including employees in the Private and Public Sector; employers mainly Professionals, small businessmen, sole proprietors; self employed; artisans made up of: traders including any citizen not less than eighteen years of age benefit from this novel product.
Bajomo explained that an applicant for the Ecobank Credit card requires neither collateral nor be an account holder of the bank. Access to funds is through a revolving credit line i.e. repayment is flexible, interest is charged only on utilized amount and not on total facility amount. Also, a key feature of the product is that it allows a zero interest free period on utilized amount and not on total facility value, including offering a zero interest free period on utilized amount for up to 40 days.
The product is managed using the iCard credit card management system, and is accepted everywhere the InterSwitch logo is deployed (i.e. on all Interswitch ATM and POS terminals including Internet and mobile banking). The product also offers a 24 hour customer service support. According to CBN�s monthly economic report for July 2006, the total amount of cash in circulation stood at N604 billion. This shows N204 billion increase in cash up from the N400 billion in 2004. This figure is an indication that the economy is predominantly cash-based.
The introduction of Ecobank naira credit Card is expected to further ginger Nigeria �s credit landscape by largely reducing the amount of cash in circulation. This is because the payment system in any economy is the fulcrum of commerce, trade and investment. With the advent of globalization, Nigeria , like other countries has lost its borders and thus is open to all kinds of competitive forces. One way to create global opportunities and make the economy attractive to foreign investors is the improvement of the payment system.
Speaking on the role of the credit card in complementing Ecobank�s renewed effort in retail dominance; the Executive Director Retail Banking Mr. Henry Helson explained that increased customer access to electronic channels such as ATMs, PoS, mobile phones for banking services is creating a new level of customer expectations in Nigeria . He later expressed excitement that Utilities- based organizations and even government agencies hitherto considered as conservative are fast moving away from cash lodgments and transactions to electronic payments.
Ecobank Group is presently in 13 African countries and is planning to extend its services to Chad , Equatorial Guinea and Sao Tome , Sierra Leone and Principe soon. Ecobank�s pedigree as the gateway to West and Central African market is a testimonial of its unique position as financial service brand. Ecobank Nigeria is the only Nigerian bank which undertakes transactions in CFA and Cedis; popular currency denominations used in the West African coast
Explaining the benefits of the Naira Credit Card to the Nigerian economy, Head Corporate Affairs, Ecobank, Mrs Funmi Olayinka, stated, I�With the introduction of Ecobank Credit card, Nigeria will be impacted greatly in several ways: Ecobank Credit Card offers true financial freedom to Nigerians and all persons desirous of doing business in Nigeria . The average Nigerian can now move away from cash based payments, embrace electronic payment reducing the high incidence of robbery attacks in the country. It will help in the reduction of printing, securing, transporting and processing of cash. The Card will also increase the overall purchasing power as a 10 per cent increase in the share of e-payments is expected to stimulate the economy by producing a 0.5 per cent increase in real consumer spending.�