.

Think about the mindset of a Nigerian.

Mr. A works for XYZ. He has a credit limit of N500,000. And in this era of uncertainty, Mr. A is fired on Friday. He walks into his bank and maxed out on his cash back. Worst case scenario, he will have a bad credit. No jail time, no asset s foreclosure because credit cards debts are unsecured loans.
Repeat this similar scenario a thousand times. Will collection agencies work in Nigeria? Will the banks hire Samoans with baseball bats to collect on deliquent accounts?

The best a bank can do is give credit backed by the amount in the individual's account. Then it defeats the whole concept of credit facility.

StillBrandnew:


Corruption cannot be totally killed, it can only be reduced while 10% to 15% unemployment may be achievable in the long run. However, with the BVN in place, debt recovery would be a lot easier.

@donvicky2007 I believe there is enough cyber security in place already and the debit and prepaid cards they issue presently are also being used online.

How does BVN relate to effective debt recovery or rather, easier debt recovery?

Please educate me.

Even without the use of credit cards in Nigeria,the debt portfolios of their clients keeps increasing because recovery officers either do nothing,are somehow intimidated by the debtors and/or management approve loans without considering their risk appetite. And to think this is for both the established and somewhat established set of individuals!!!

Money that shareholders should be getting as dividend on their investment is used for contingency reserve and insurance for non-performing loans!!

Icecomrade:

Skye Bank issue credit cards. Both Naira and USD

Most Nigerians are not credit worthy and recovery is usually a huge issue.
Light stringent measures are in place to curb defaults.

Go! Enjoy the Skye Bank credit card

I concur

Ofcourse Banks issue credit card, my first credit card was from Eco bank before I got one from Wema Bank.

StillBrandnew:
Lalasticlala, Seun, Obionscopy over to you.
Please let's get people's view on this.

@o.p na u stil be F.T.C? How c.b.n governor wan take hapi wit u na?

@StillBrandnew

You have a point though

Dangerous though real g will be happy

InvertedHammer:
Think about the mindset of a Nigerian.

Mr. A works for XYZ. He has a credit limit of N500,000. And in this era of uncertainty, Mr. A is fired on Friday. He walks into his bank and maxed out on his cash back. Worst case scenario, he will have a bad credit. No jail time, no asset s foreclosure because credit cards debts are unsecured loans.
Repeat this similar scenario a thousand times. Will collection agencies work in Nigeria? Will the banks hire Samoans with baseball bats to collect on deliquent accounts?

The best a bank can do is give credit backed by the amount in the individual's account. Then it defeats the whole concept of credit facility.

I think with the BVN, it is possible to run a credit background check on each individual irrespective of the bank their accounts are domiciled at. Therefore, if Mr. A takes a credit card loan from Bank GTBANK, it will be impossible for him to take another loan from Zenith Bank until he repays the first one. All the bank needs to do, is to use his BVN number to run a background check to ascertain his credit worthiness. If he fails to pay the money after its due date, the same BVN can be used to trace all his other bank accounts and if funded, the value of the credit can be debited from there.

So with the BVN, Mr. A cannot take credit and run away, unless off course he never wants to own a bank account in his lifetime again. I think this presents a good opportunity for banks to start reaching out to individual customers to borrow. The level of credit an individual is entitled to, should be determined by the volume of business they transact on their bank accounts annually. For this credit system to work effectively, the CBN also need to set up a department/agency totally dedicated to the management of bank customer credit information so that banks can access them when they need them.

InvertedHammer:
Think about the mindset of a Nigerian.
Mr. A works for XYZ. He has a credit limit of N500,000. And in this era of uncertainty, Mr. A is fired on Friday. He walks into his bank and maxed out on his cash back. Worst case scenario, he will have a bad credit. No jail time, no asset s foreclosure because credit cards debts are unsecured loans.
Repeat this similar scenario a thousand times. Will collection agencies work in Nigeria? Will the banks hire Samoans with baseball bats to collect on deliquent accounts?
The best a bank can do is give credit backed by the amount in the individual's account. Then it defeats the whole concept of credit facility.

SmartMugu:
With the current state Nigeria is in, credit opportunities will not work in that system - except may be for a select few, but yet it won't be same as in sane countries.

The reason is simple. The US for example has a unique identifier for everybody living there legally - Social Security Number (SSN). Nigeria doesnt. With the SSN, everything else can be linked - your properties, debts, equities, family members, criminal history, insurance records, census reasons etc.

Every business in the US (an example) can decide if you are credit-worthy once they look through your past records from your SSN. Banks, financial firms, employers, etc and rely on that to make informed decisions.

If it took forever for Nigeria to think about BVN, how much longer would it take to implement something close to SSN that the US uses? Unless BVN will be used to represent SSN. But what about people that don't have bank accounts and don't need BVN?

The right approach would be to have a unique number assigned to every citizen in Nigeria, even babies. From that, everything else can be done. I thought that was the whole reason for the National ID card, until...

So, I won't blame banks if they don't think Nigeria is ripe for that yet. Like everyone, they don't want to lose money from people fleeing with funds they borrowed. The right system has to be put in place to establish a confidence level for them.

The BVN for me is very ineffective right now, but would be very useful if the Crédit card is adopted by all banks. On the issue of running away, since all our accounts are linked to the BVN all our credit cards would also be linked to our BVN and any bank should be able to use it in accessing credit card debts to ascertain whether to or whether not to issue another credit card to a customer.

Nigerian banks issue credit cards.....At least I have one from Diamond

InvertedHammer:
Think about the mindset of a Nigerian.

Mr. A works for XYZ. He has a credit limit of N500,000. And in this era of uncertainty, Mr. A is fired on Friday. He walks into his bank and maxed out on his cash back. Worst case scenario, he will have a bad credit. No jail time, no asset s foreclosure because credit cards debts are unsecured loans.
Repeat this similar scenario a thousand times. Will collection agencies work in Nigeria? Will the banks hire Samoans with baseball bats to collect on deliquent accounts?

The best a bank can do is give credit backed by the amount in the individual's account. Then it defeats the whole concept of credit facility.

Because of the peculiarities of the Nigerian factor, I think it should be secured to mitigate against risk(s) involved.
Proper documentation and T&C should cover this!.

And talking about collection agencies, there are debt recovery agencies(debt factoring) in Nigeria and they work!!!.
And what do you mean by giving credit backed by the amount in the individual's account? You know I can clear my account and the bank cannot freeze my account without securing a court order first?

RichYoungNigga:


Please, stop showing your ignorance.

Big girl for mouth.

What Nigerian banks issue is ATM card.

Wow, big girl

You're the ignorant one here. There's nothing like "ATM Card" in that sense. Cards are either Debit or Credit.

picsOR:


You're the ignorant one here. There's nothing like "ATM Card" in that sense. Cards are either Debit or Credit.

In real life i don't talk to lowlifes

Nigerians abroad are finding it difficult to maintain credit cards issued to them by their banks. , Now you want Nigerian banks to issue credit cards abi? Let me tell you, 90% of credit cards owners in Nigeria would disappear within one week of receiving those cards.

Back in abroad for a second. As soon as Nigerians receive their new credit cards, they immediately withdraw all the money and spend it on useless things. Some make good use of the money back home. But all in all, they all end up with bad credits. This makes acquiring credits or living a very comfortable life difficult for them.

RichYoungNigga:


In real life i don't talk to lowlifes

Of course you don't talk to yourself in real life. That would be insane.

.

StillBrandnew:

Just thinking out loud.

We don't need them cards now bro

babsmii:
80% of Nigerian Banks issue credit card, most people commenting on this thread have probably not been approached by any bank. Stanbic bank is on my neck asking me to take a credit card, Diamond bank once asked if i needed one.

It's mostly salary earners who are targeted. And the "credit card" still doesn't work like it does in other climes.

What good will a credit card do to someone with little or no income. Havent u read about the financial crisis in the late 90s and early 2000s.

The subprime mortgate wahala? how did this crises start?

By the issue of credit cards to people who could not afford to service their debts.

How do you give a credit card to a student or a jobless person to spend what he or she cant afford.

the truth is credit cards are for rich people , its a convenient way to transact business, but there are other convenient ways to transact biz too.

The revolving charges are high, and note you are a given a very limited time to pay back all you ve spent on the card or your debt will accumulate.


Credit card is not for the average Nigerian, it will plunge people further into debt.

daftpikin:



The BVN for me is very ineffective right now, but would be very useful if the Crédit card is adopted by all banks. On the issue of running away, since all our accounts are linked to the BVN all our credit cards would also be linked to our BVN and any bank should be able to use it in accessing credit card debts to ascertain whether to or whether not to issue another credit card to a customer.

I think there might be some problems with that approach. What would happen in the case of a billionaires that want their children to own everything they had after they're gone? What if they expect to leave infants behind? I know a 2-year old don't need a bank account, hence has no need for BVN.
So, if banks rely on only those with BVN, several others would be segregated, no matter how much they're actually worth from inheritances, investments etc.

Sane countries assign a different kind of identifiers to their citizens that don't depend on them having a bank account.
In the US for example, the SSN is enforced from birth for those born there. Attending schools, getting medical help etc rely on the fact that people's past, present and their future can be tracked from their SSN, not because they managed to open a bank account and suddenly got assigned a BVN.

As celebrated as the US is, a huge fraction of its population still doesn't have a bank account. Many even believe the banking system is fraud in its own.

The problem isn't giving credit, the problem is the interest rate. The rates are so high that it doesn't make good fiscal sense to issue credit cards. If business people are complaining, what hope is there for consumer-based credit?
The rates need to come down.

My first credit card is VISA card with GTB in 2010 but when it expired I was issued debit MasterCard and it quite different from Naira ATM debit card and that's what mostly people have. GTB still issuing a credit card but base on invitation cos that is what I was told the last time I spoke with them.

Yes....Ive been using First bank credit card for a year and a half now and e dey work steady....

my brother has a stanbic credit card

Rainmaker69:
The problem isn't giving credit, the problem is the interest rate. The rates are so high that it doesn't make good fiscal sense to issue credit cards. If business people are complaining, what hope is there for consumer-based credit?
The rates need to come down.

I'd think interest rates would be decided based on individuals and their credit worthiness. I don't think a bank would issue loans to a random artisan and Dangote at the same interest rates. A rating system needs to be set-up, and it revolves around setting up something similar to an SSN.
Unfortunately, it appears our legislators are busy with climate change etc rather than fundamentals like this.

Some banks already issue credit cards, but not to every Halima, Okonkwo or Tunji.
Do we have a credible voters registration, institutions like Equifax or experian?
Until we do, Tom, Dick and Harry would have to wait!!

of course, i do av a credit card (visa) issued to me by my bank.

I have a visa credit card issued by Fidelity Bank. You only have to be credit worthy, disciplined and trustworthy.

It could actually help SMEs a lot.

rodbel:


Visit a FirstBank branch and ask for a Naira Credit Card. You must have an account with them thou.

NCC cards are issued to salary earners.

SmartMugu:

I think there might be some problems with that approach. What would happen in the case of a billionaires that want their children to own everything they had after they're gone? What if they expect to leave infants behind? I know a 2-year old don't need a bank account, hence has no need for BVN.
So, if banks rely on only those with BVN, several others would be segregated, no matter how much they're actually worth from inheritances, investments etc.

Sane countries assign a different kind of identifiers to their citizens that don't depend on them having a bank account.
In the US for example, the SSN is enforced from birth for those born there. Attending schools, getting medical help etc rely on the fact that people's past, present and their future can be tracked from their SSN, not because they managed to open a bank account and suddenly got assigned a BVN.

As celebrated as the US is, a huge fraction of its population still doesn't have a bank account. Many even believe the banking system is fraud in its own.

Well said, but I feel a minor has no need for a credit card. So even if he has billions in investments or inheritance he still would not get a credit card.

On the issue of Social Security, we have not gotten there yet and I do not think we will even in the next 5 years but that should not stop the banks from starting with the BVN. If you don't have a bank account then you don't get a credit card, cause knowing Nigerians they would try various means of defrauding the financial organizations if there's nothing to check them.

tizzle1:
DOA....i'll just swipe $1m , ask a family memeber to open an account for me..i continue to enjoy the money

what am i saying
the thing is your need to upgrade the average nigerian mentality first before anything else

you cant just swipe $1m

if it plays out like said, the bank would definitely put you on a scale that fits you
based on your transaction rate

if your average deposit in a month is N50k, the max you could use as credit would be based on that


i know you know and we all know what i am saying!