TechPression

Tag: Providus Bank

  • Providus Bank names Mahmud Tukur as Non-Executive Director

    Providus Bank names Mahmud Tukur as Non-Executive Director

    Mahmud Tukur has been appointed to the position of Non-Executive Director of Providus Bank.

    The appointment which was announced on Monday was confirmed at the Bank’s Annual General Meeting, which took place at the Radisson Blu Anchorage Hotel on Victoria Island in Lagos.

    An award-winning worldwide business leader with thirty years of expertise in the energy, maritime, infrastructure, and technology sectors is Mr. Mahmud Tukur, the founder and general chief executive officer of Ashgrove Group.

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    The statement reads, “We are delighted to welcome Mr Mahmud Tukur to our Board. His extensive experience and multifaceted skillsets, including corporate governance, risk management, strategy and performance management, will be invaluable as we strengthen our strategic direction and drive sustained growth.

    His leadership acumen and deep industry insights align with our vision for future-forward banking.”

    Mahmud Tukur’s portfolio 

    At the age of 37, Tukur was appointed to head Eterna Plc, an indigenous downstream oil business listed on the Nigerian Stock Exchange (NGX), making him the youngest CEO of a publicly listed company in Nigeria.

    In addition to being named one of the top 25 CEOs of publicly traded firms in Nigeria, he twice led a spectacular turnaround in the company’s fortunes and won the coveted Downstream CEO of the Year award.

    He graduated from the University of Wales College’s Business School in Cardiff with a Joint Honours degree in Accounting & Management.

    In addition to being a Fellow of the Chartered Institute of Shipping (Nigeria), he is a member of the Society for Corporate Governance Nigeria (SCGN), the Chartered Institute of Directors (CIoD), and many chambers of business.

    Additionally, the Republic of Togo awarded him the title of Officer of the Order of the Mono (OOM), a National Honour.

    Read also: GTbank scraps POS fees as CBN increases ATM withdrawal charges

    Other Executive/Non-Executive Directors to work with Mahmud Tukur

    Mahmud joins the esteemed Providus Bank Board, which has nine members and is led by Alhaji Hussaini Dikko.

    Other Non-Executive members are Maurice Onokwai, Chuka Eseka, Funmi Agusto, Bernadine Okeke, and Dr. Belinda Bobby Diei.

    The Bank’s Executive Directors are Walter Akpani (Managing Director/CEO), Kingsley Aigbokhaevbo (Deputy Managing Director) and Deoye Ojuroye (Executive Director).

    ProvidusBank reaffirms its dedication to excellence in governance, innovation, and sustainable growth with this important appointment.

  • Providus bank announces ₦3 trillion boost from strategic merger

    Providus bank announces ₦3 trillion boost from strategic merger

    Providus Bank stated that the Central Bank of Nigeria (CBN) has granted preliminary approval for the merger with Unity Bank, resulting in a post-merger business with a balance sheet of up to ₦3 trillion ($1.8 billion).

    In comparison to the other companies, Providus is in a better financial position because of the reputation it has earned for its banking-as-a-service product.

    Read also: Nigeria’s biggest lender, Zenith Bank, gets $182 million

    It was reported that Providus Bank emailed its customers to inform them that the proposed merger would produce one of Nigeria’s top financial institutions. According to the media source, Nine Banks combined to become Unity Firms in 2006 and has since incurred losses and bad debts.

    This merger requires Central Bank financing. It was revealed that a loan of ₦700 billion was demanded.

    Providus Bank merges Unity Bank to boost expansion

    According to an anonymous banker, despite its high debt and the difficulty of purchasing troubled banks, Providus Bank is set to expand its retail presence.

    This ambitious expansion plan is particularly noteworthy given the stark contrast between Providus’ current branch network and Unity Bank, which boasts an impressive 240 branches, a staggering tenfold increase over Providus’ existing footprint.

    As Providus navigates this bold growth strategy, it will be crucial to address its debt challenges and successfully integrate Unity Bank’s extensive branch network to create a more robust and competitive retail banking operation.

    Providus claimed that the business combination would ensure that the bank had footprints in major cities around Nigeria.

    While many social media commentators have questioned the deal, one finance analyst speculated that the CBN may have been unwilling to allow a second bank failure following the revocation of Heritage Bank’s licence in June 2024.

    Read also: Cybercriminals hijack GTBank website

    Unity Bank’s stormy past precedes Providus Bank’s acquisition

    Unity Bank’s exit represents another lucky escape for a company that has frequently appeared in danger. Its billion-dollar losses stemming from subprime loans reduced shareholder capital and missed the 2010 recapitalisation deadline.

    Despite eventually raising capital in 2011 and recovering around ₦53 billion in bad loans, Unity Bank was soon in the red again. By 2018, it had accumulated losses of ₦338 billion, and by 2023, shareholder capital was again wiped out, prompting speculation that its licence would also be revoked.

    Providus will ultimately acquire a partner with a retail presence and can feel good about not taking on Unity Bank’s short-term liabilities, even though Unity Bank’s unstable liquidity position will make this appear like an acquisition.

  • A New Tap-to-Pay Service for Mobile Devices in Nigeria is Now Available

    A New Tap-to-Pay Service for Mobile Devices in Nigeria is Now Available

    ProvidusBank has teamed up with Interswitch, Mastercard, and Thales Group to launch a new service called “Tap-to-Pay.” This measure aims to make Nigeria less dependent on cash transactions, encourage innovation, and speed up the spread of digital payment methods in the country.

    Cardholders will be able to make quick, secure, and easy payments in stores by tapping their NFC-enabled smart device on any contactless-enabled payment terminal. This service will be available to cardholders. A connected device, such as a smartphone or wearable gadget, can function as a safe and secure payment mechanism like a genuine card does. This is how the solution works.

    What are the new perks of the bank initiative?

    Customers of ProvidusBank will find it easier to do things because the bank uses Mastercard’s Digital Enablement Service (MDES) and Interswitch’s tokenization feature. This means that ProvidusBank customers will be able to shop without a card or a traditional wallet.

    Read also: ‘Touch and Pay’ Plans National Expansion Following Seed Funding Round

    Mastercard’s tokenization and digitization technology processes each transaction with tokens instead of primary account numbers (PANs). This replaces PANs with tokens to make the checkout process faster, safer, and more convenient. It also makes card numbers useless to thieves, who won’t be able to use them.

    “In Sub-Saharan Africa, technology has changed a lot in the last ten years, and mobile phone technology has played a big role in that,” said Walter Akpani, Managing Director and Chief Executive Officer of ProvidusBank, about the new solution. The bank’s engagement with Mastercard and Interswitch to create additional value through mobile devices is a plan to leverage current infrastructure while enabling more manageable use of the advanced digital and tokenization capabilities of Interswitch and Mastercard.

    All Mastercard transactions are protected by payment tokens that are based on industry standards and use the standard EMV level of security.

    The merging of traditional and online shopping will not happen in the distant future; instead, it is already taking place. According to Ebehijie Momoh, the Country Manager and Area Business Head for Mastercard in West Africa, “We understand that consumers want to make digital payments when, where, and how they want, with the same protection and security offered with a physical card.” “As a leader in mobile commerce innovation, we’re excited to work with ProvidusBank to create a new way to pay that is both easy and safe. This will help Nigerians use digital payments more quickly.”

    Interswitch Purepay Managing Director Akeem Lawal made the following statement in response to the collaboration: “With the increasing adoption of digital payments, there has been a corresponding need for players in the payments ecosystem to heighten the safety and security of payment platforms and channels.” This is the main reason why Interswitch, Providus Bank, Thales Group, and Mastercard worked together to make tokenization technology. This technology adds an extra layer of security and makes sure that payment transactions are safer and easier to use. We at Interswitch are constantly looking for new ways to use critical collaboration to push the limits of innovation.

    Read also: Yellow Pay Introduces New Payment Option

    Using Tap-to-Pay service

    To use the service, customers must go through a one-time process of digitizing their cards by following the instructions in their banking app. Once the card information has been sent to a mobile device, a cardholder can tap to pay by opening the banking app on their device, selecting NFC payments, touching their phone at the Point of Sale, and entering their PIN to complete the transaction. They can also make secure and hassle-free payments via apps and online stores.

    Similarly, Nassir Ghrous, Vice President of Sales for Banking and Payments Services at Thales Group, a global leader in advanced technologies, said, “We are excited to use our digital security expertise to develop the tokenization solution with innovators like Interswitch, Providus Bank, and Mastercard to improve the payment ecosystem in Nigeria.” The bank works with agriculture, mining, hotels, e-commerce, art and entertainment businesses, and more. Through EMV tokenization, the actual 16-digit card number of the customer is shielded from being shown online while the transaction is taking place.

    Providus cardholders can also take advantage of contactless payment via their mobile devices due to this solution, which enables them to enjoy a comprehensive, user-friendly, and hassle-free “Digital Journey.”

    About Providus bank

    Providus Bank is a Nigerian commercial bank headquartered in Lagos. The bank, founded in 2016, provides debt financing to small and medium-sized businesses. The bank works with agriculture, mining, hotels, e-commerce, art and entertainment businesses, and more.