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Nairaland Forum / Nairaland / General / Business / Will Nigerian Banks Ever Start Issuing Credit Cards? (15378 Views)
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Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by Jimi23(m): 7:37am On May 13, 2016 |
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Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by InvertedHammer: 7:40am On May 13, 2016 |
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. 4 Likes |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by DICKtator: 7:47am On May 13, 2016 |
StillBrandnew: 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!! |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by uchennn: 7:53am On May 13, 2016 |
Icecomrade:I concur |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by chukxy44(m): 7:53am On May 13, 2016 |
Ofcourse Banks issue credit card, my first credit card was from Eco bank before I got one from Wema Bank. |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by Nobody: 7:56am On May 13, 2016 |
StillBrandnew:@o.p na u stil be F.T.C? How c.b.n governor wan take hapi wit u na? |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by Adesiji77: 7:56am On May 13, 2016 |
@StillBrandnew You have a point though |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by zeedof(m): 7:57am On May 13, 2016 |
Dangerous though real g will be happy |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by since1914(m): 8:01am On May 13, 2016 |
InvertedHammer: 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. 1 Like |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by daftpikin: 8:02am On May 13, 2016 |
InvertedHammer: SmartMugu: 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. |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by mrnelly12: 8:05am On May 13, 2016 |
Nigerian banks issue credit cards.....At least I have one from Diamond |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by DICKtator: 8:05am On May 13, 2016 |
InvertedHammer: 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? |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by picsOR: 8:08am On May 13, 2016 |
RichYoungNigga: You're the ignorant one here. There's nothing like "ATM Card" in that sense. Cards are either Debit or Credit. 2 Likes |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by RichYoungNigga: 8:13am On May 13, 2016 |
picsOR: In real life i don't talk to lowlifes |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by bee444: 8:18am On May 13, 2016 |
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. |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by picsOR: 8:21am On May 13, 2016 |
RichYoungNigga: Of course you don't talk to yourself in real life. That would be insane. 3 Likes |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by babsmii(m): 8:22am On May 13, 2016 |
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Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by overlord77: 8:23am On May 13, 2016 |
StillBrandnew: We don't need them cards now bro |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by picsOR: 8:25am On May 13, 2016 |
babsmii: It's mostly salary earners who are targeted. And the "credit card" still doesn't work like it does in other climes. 1 Like |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by Nobody: 8:27am On May 13, 2016 |
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. |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by SmartMugu: 8:33am On May 13, 2016 |
daftpikin: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. |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by Rainmaker69(m): 8:34am On May 13, 2016 |
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. |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by kolajoo(m): 8:41am On May 13, 2016 |
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. |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by adamsumale(m): 8:46am On May 13, 2016 |
Yes....Ive been using First bank credit card for a year and a half now and e dey work steady.... |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by Nobody: 8:46am On May 13, 2016 |
my brother has a stanbic credit card |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by SmartMugu: 8:48am On May 13, 2016 |
Rainmaker69: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. |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by Lexusgs430: 8:56am On May 13, 2016 |
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!! |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by tjay0584(m): 9:41am On May 13, 2016 |
of course, i do av a credit card (visa) issued to me by my bank. |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by babestella: 10:02am On May 13, 2016 |
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. |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by Dfinex(f): 10:20am On May 13, 2016 |
rodbel: NCC cards are issued to salary earners. |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by daftpikin: 10:33am On May 13, 2016 |
SmartMugu: 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. |
Re: Will Nigerian Banks Ever Start Issuing Credit Cards? by femzysticks(m): 10:43am On May 13, 2016 |
tizzle1: 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! |
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