Cashless ATMs: Nigeria struggles to keep up with growing demand
There are about 25 ATM terminals within Badore, Langbasa and Addo, three major roads of less than 5km located within the Ajah community in Eti Osa local government area in Lagos state, which is more ATMs than over 20 local governments in Kano state have. The three roads also account for more bank presence (nine bank branches) than the entire stretch from Abraham Adesanya, Ibeju Lekki, Lekki Free Trade Zone, to Epe, a distance covering 135.9km. Five days out of seven a week, most of the over 25 ATM locations are empty because the machines are out of service, out of network, or out of cash. It is the same experience many bank customers face with about 22,600 ATM locations, as Inlaks data show, spread across the country. Nigeria requires about 60,000 ATMs to meet up with its growing population of 216 million people and a banking population of 106 million adults, according to Tope Dare, executive director of Inlaks, the largest ATM operator in the country, which controls over 40% of the market. In 2010, Nigeria had roughly about 7,100 ATMs and the number grew to over 11,000 in 2011 because the CBN mandated the removal of the offsite deployment by banks. This meant that banks would no longer invest in ATMs outside their branches. The CBN seeded the deployment to independent ATM deployers which couldn’t run the project due to the cost. The ban was eventually lifted, allowing banks to invest more in ATMs. The number of ATMs then grew from 11,000 in 2011 to 16,000 around 2016 and 21,000 in 2019. It grew to 22,600 in 2021, where it has remained as of December 2023, an indication that investment in the market has reduced. Seventy-six per cent of the total ATMs in Nigeria are deployed by eight banks. Access Bank has over 4,000 ATMs, First Bank has about 3,300, UBA has 2,150 ATMs, Zenith has 2,100 ATMs, GTBank has 1800 ATMs, FCMB has 1,350, Polaris has 1300, and Union has 1,200. A total of 17,200 are owned by these eight banks. Consequently, there needs to be more ATMs in Nigeria to serve the needs of the banking population, and this has always been the case with Nigerian banking services. The estimated branch count of the 24 commercial banks is about 4,500, which is not enough for an estimated 106 million banking population reported by EFInA. The BVN accounts are currently at 60.1 million and active bank account holders are about 135 million. The annual growth rate of ATMs in Nigeria is about 3%-4%, but this has dropped to below %1 in the past two years, as the Inlaks data show. Nigeria’s ATM per capita (number of ATMs per 100,000 adults) has also dropped from 16.92 ATMs in 2018 to about 16.15 in 2021. The global standard should be 1,000 ATMs per 100,000 bankable adults. Hence, Nigeria should have about 60,000 ATMs when it is measured against the unique bank customers at 60.1 million. Given the 22,600 active ATMs, there is a deficit of about 37,400 ATMs. As the number of bankable adults keeps increasing and more cards are issued, it is expected that ATMs will decrease in number over time, since the banks are not deploying more ATMs. Growth factors for ATMs In the past, some of the factors that have contributed to the growth of ATM deployment in the country include banks’ profitability. When banks are profitable, they undertake branch expansion and capital expenditure. Banks also deploy more ATMs when their customer base is growing because this means that more cards will be issued, and there will be a need to provide cash and additional ATMs for the customers. Banks that undertake digitalisation initiatives often need to deploy more ATMs. Financial inclusion initiatives also impact the growth of ATMs positively. Banks will also deploy ATMs in areas with improved power generation, this is because the cost of electricity is a major burden for ATM deployment. Why investors are looking away from ATMs Dare says the ATM business in Nigeria is facing its most difficult times due to the high cost of maintenance, growing adoption of other banking channels, foreign exchange crisis, galloping inflation, insecurity, and uncertainty in the ATM policy environment, all of which are driving investors far away from the market. In 2016, the exchange rate for the dollar was ₦250. It rose to ₦325 in 2017 and stabilised between ₦330 and ₦360 by 2019. Dare says buying at a rate of ₦380 in 2020 and ₦455 before the Muhammadu Buhari administration left office, impacted the unit cost of ATMs significantly. However, it went from bad to worse when the new government under Bola Ahmed Tinubu dramatically announced the unification of the FX rate, which pushed the official rate to ₦750. The black market price for the dollar is currently above ₦1,500. “A machine that we were selling at ‘x’ million naira this time last year, by today we are selling at 3.5x today. This is affecting the hire purchasing cost due to FX. The FX is also dependent on the customs duty and the OPEX. The cost of maintaining ATMs has gone up due to inflation, the cost of transportation, and the cost of spare parts because you have to import spare parts from abroad,” Dare said. ATMs are also seeing fewer investments because most investors are paying more attention to other growing electronic channels such as PoS terminals, mobile app transfers, USSD, and other alternative channels consumers use to make payments faster and more convenient. “The rapid adoption of digital payment methods is influencing consumer behaviour, leading to a shift away from traditional ATMs in favour of more convenient digital alternatives,” said Olaoluwa Awoojodu, CEO of Electronic Settlement Limited. The non-profitability of ATMs is also a big factor for investors. The interchange fee also known as the surcharge fee, is one of the lowest in the world. Today, when a customer visits an ATM he/she is charged N35 after the third transaction.
Read MoreInvestors bet big on Africa’s logistics potential
This article was contributed to TechCabal by Bonface Orucho, via bird story agency. Africa’s logistics sector is growing into a lucrative market and strategic hub within the global logistics network, as investors’ confidence in the sector increases. A new report by logistics company Agility confirms the global logistics industry is considering expansion plans or first-time investments in the continent’s logistics sector. According to Agility Vice Chairman Tarek Sultan, “This is the most optimism we’ve seen about Africa in the 15 years of the Index.” Notably, 47.4% of respondents are planning additional investments in Africa, while 14.2% of the logistics executives from different companies are planning first-time investments on the continent. Only 6.6% of the executives are planning to exit or scale back from certain African markets. This report coincides with increased investment in Africa’s logistics sector, with railroads and ports undergoing renovations and tech-driven solutions targeting emerging opportunities like intra-African trade. A major upgrade to the Lobito Corridor, a close to 100-year-old rail network linking the mineral-rich Democratic Republic of Congo (DRC), Angola, and Zambia) to the Atlantic Ocean, received a major boost recently at the Mining Indaba in Cape Town. The US and EU-backed corridor operators signed a deal with its first customers, who committed to using the railroad to transport minerals upon its launch in 2025. Trafigura, a Singapore-based multinational commodity trader, along with the Kamoa-Kakula copper mine (a mine in the DRC jointly owned by Ivanhoe Mines and China’s Zijin Mining Group) will export up to 450,000 and 240,000 metric tons of copper, respectively, via the railroad. According to Jeremy Weir, Executive Chairman and CEO of Trafigura, these commitments will grow to make the corridor one of the leading rail transport links in sub-Saharan Africa. Revitalisation of the TAZARA railway, another logistics route connecting mineral-rich Zambia with the Indian Ocean via Tanzania, is on the negotiation table, with China proposing to inject $1 billion in its rehabilitation, according to the International Railway Journal. Elsewhere, the port of Maputo in Mozambique is the latest of many African ports to attract deep-pocketed global investors keen to invest and expand their operational capacity and general efficiency. According to a 2024 Bloomberg report, DP World, working with Grindrod Ltd., will pump $2 billion toward port expansion after winning a 25-year concession extension deal that will end in 2058. As international investors increasingly eye investments in the continent’s logistics sector, homegrown companies from established operators like Grindrod to startups are scaling operations and leveraging technology to build logistics services across Africa. Many of these companies are responding to the recently signed African Continental Free Trade Area (AfCTFA) agreement, which will see the elimination of tariffs between member states. Moroccan logistics tech startup Logidoo announced in mid-February it had raised funding to expand an end-to-end logistics offering to 5 new African markets. The startup already has active operations in 8 African countries. There has been a steady rise in the number of similar tech-led logistics startups in Africa. Tracxn.com, a startup tracking platform, shows that there are an estimated 1,218 logistics tech startups operating in Africa today. According to Africa: The Big Deal, startups in the logistics and transport sectors were among the top three most-funded sectors last year, raising some $210 million. According to the UN Economic Commission for Africa, AfCFTA will boost intra-African trade by around 40%. The UN body called on African governments to “implement the Inter-Governmental Agreement on the Trans-African Highways; finance Road Safety; sign the Solemn Commitment to the Single African Air Transport Market (SAATM); fully implement the Yamoussoukro Decision on the liberalization of air transport; sign and ratify the Luxembourg Rail Protocol to attract private sector investment in rolling stock; support the civil aviation industry” to fully benefit from AfCTFA.
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Investors react positively after Jumia’s Q4 results
The stock market reacted positively after Jumia shared its financial results for the fourth quarter of 2023, with shares of the Africa-focused e-commerce company closing at $4.56 on Thursday, a 41.18% jump. Jumia cut its operating loss in Q4 2023 to $4.5 million after several significant strategic changes, but profitability remains elusive. Metrics like Gross Merchandise Value (GMV), active customers and revenue declined compared to Q4 2022 figures, but shareholders are reacting positively to the fact that despite Jumia cutting its spend on advertising and promotions, revenue was up in constant currency terms. One big positive in Jumia’s report is the reduction of its losses to the lowest in four years. The company has also had to make difficult business decisions in the last two years. It shuttered its food delivery business in December 2023. On Thursday, TechCabal exclusively reported that the company laid off employees in January 2024. Exclusive: Jumia slashes staff after exiting food delivery business CEO Francis Dufay talked about building a “leaner, more agile and more focused company.” Macroeconomic conditions across many of its African markets has made business difficult withnflation and currency devaluation in some of its major markets like Nigeria and Egypt contributing to the reduction in the company’s GMV. One thing is clear: Jumia is keen on being profitable in 2024. “We are seeing signs of stability and growth in other markets,” Dufay said on the earnings call.
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👨🏿🚀TechCabal Daily – Uganda’s national IDs get eye scan feature
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF It’s the season of love and tech boys and girls are not left out. Our sister publication, Zikoko, has just dropped a Valentine Special where three couples—one with kids, one now married and the last, still best friends—reveal how well they know and love each other, and how their relationships have evolved. This is your sign to Enter Love today. In today’s edition Jumia lays off staff again Gokada’s lean path to progress Nigeria’s inflation soars Uganda adds iris biometrics to national IDs Funding tracker The World Wide Web3 Job Openings E-commerce Jumia trims losses to $4.5 million and lays off employees in Kenya Jumia, a leading e-commerce player in Africa, has shown signs of progress in its fight against red ink. In Q3 of 2023, it lost 800,000 active customers but saw a $19 million reduction in operational losses. Now, its Q4 2023 financial report boasts a significant reduction in operational losses to $4.5 million, due to a strategic decision to shut down Jumia Food, reduce its workforce and focus on higher-value goods. Following these strides, transactions on JumiaPay, its payment service, grew 41% year-over-year. Jumia CEO, Francis Dufay also claims the company finished 2023 with a significant reduction in losses before tax, down to $98.6 million from $206.2 million in 2022. Jumia also slashed its marketing budget. Their total sales and advertising spend for Q4 2023 was $6.2 million, a 62.8% decrease from Q3 2022. Cost-cutting wins, but at what cost? Sadly, the progress comes with a painful impact of laying off an undisclosed number of employees 8’ January 2024, in Kenya and other markets to create leaner, agile teams. This comes one year after the e-commerce company laid off 900 employees in an effort to cut costs. Zoom out: Despite the progress, Jumia remains unprofitable. Economic headwinds like inflation and currency devaluation resulted in a 22% drop in orders and a decline in Jumia’s user base to 2.3 million active users, losing 500,000 active customers in Q4 compared to the same period in 2022. Its revenue also took a hit. It dipped 8.3% in 2023, falling from $203.3 million in 2022 to $186.6 million. Access payments with Moniepoint You don’t have to take our word for it. Give it a shot like he did Click here to experience fast and reliable personal banking with Moniepoint. Startups Gokada pivots to an asset-light model Nigeria’s last-mile delivery market is projected to reach a staggering $58.6 billion by 2029, fueled by an e-commerce surge which was reportedly expected to reach $9.2 billion by the end of 2023. This promise is marred by Nigeria’s terrible roads—the worst in Africa—traffic congestion in major cities like Lagos, and even some government policies like the recent fuel subsidy removal which has quadrupled fuel prices This is the harsh reality of startups like Gokada, forced to adapt and fight for survival in the delivery space. The Nigerian last-mile delivery company has pivoted to an asset-light model to stay afloat and find new funding. Why pivot? Founded in 2017, Gokada bought bikes for their drivers under a hire-purchase plan. Drivers had a repayment plan spread for up to three years, eventually becoming owners. This meant Gokada shouldered maintenance costs, which ballooned to tens of thousands of dollars a month in late 2021 and early 2022. And according to the COO Oluwaseun Omotosho, continuing on this path meant the business would have shut down. Now, with the company going asset-light, Gokada owns only 10% of the 5,000 bikes on its platform, and drivers become partners and handle their bike maintenance. Gokada just connects them with financing companies, oversees payment collection and takes a commission. However, the shift isn’t just about saving cash. Gokada is also looking for new investors after a tough past three years. What happened? In 2020, a motorcycle ban in Lagos forced Gokada to ditch ride-hailing and switch to deliveries. They laid off 80% of their staff. Their then-CEO, Fahim Saleh, was also tragically murdered that same year. In 2022, the delivery company considered selling the business to a competitor, Kwik Logistics, but the deal did not go through. 2023 also brought another blow as 54 employees were laid off in February due to harsh macroeconomic conditions and had to run a leaner operation, closing one office and renegotiating terms with vendors. More logistic startups shutdown: The harsh reality hasn’t spared other logistics startups like Hytch and GoMyWay, who have all shut down in 2023 and 2018 respsectively, due to a lack of funding. Secure payment gateway for your business Fincra’s payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through bank transfers, cards, virtual accounts and mobile money. Create a free account and start collecting NGN payments with Fincra. Economy Nigeria’s soaring Inflation nears 30% mark Nigeria’s January 2024 inflation figure of 29.90% marks a grim milestone – the highest since 1996, a period etched in memory for its crushing poverty and economic instability under the Abacha regime. While the country has avoided repeating such historical lows, the current situation raises serious concerns. Domestic issues like insecurity in agricultural regions and currency depreciation are among several factors driving Nigeria’s inflationary surge. Food inflation currently reads 35.5% , while the CBN has an unmet backlog of FX demand estimated at $2.2 billion. Despite implementing monetary tightening measures like raised interest rates and cash reserve requirements, the Central Bank of Nigeria (CBN) has struggled to effectively curb inflation. Critics argue that the CBN has ignored its inflation target of 6-9% set in 2014 and argue that the current measures primarily impact businesses and individuals seeking loans, further hindering economic growth. A way out? Despite repeated promises to address inflation, Nigeria’s Central Bank Governor, Olayemi Cardoso, has offered limited specifics on his plans. At the recent Nigerian Economic Summit Group (NESG) meeting, Cardoso predicted inflation would fall to 21.4%, but details remain
Read MoreExclusive: Jumia slashes staff after exiting food delivery business
Jumia, one of Africa’s most prominent e-commerce platforms, laid off employees in Kenya and other African markets in January 2024, one month after it exited Jumia Food, its food delivery business. The number of employees affected by the layoffs was not disclosed. “News about layoffs was shared last week but no communication was made about who was affected and you’re still expected to work,” one Jumia employee wrote on Glassdoor on February 5, 2024. This year’s layoffs come one year after Jumia fired 900 staff as part of attempts to cut costs and guide the company toward profitability. Some other employees were moved to different roles within the company, the company told TechCabal. “As we continue to review our investment and innovation in our operations, we are refocusing teams and resources on activities and projects to support our path to profitability,” the e-commerce giant told TechCabal in an email on Thursday. “Based on this, we are making some adjustments to our organisational setup in several countries including Kenya to better optimise our capital and continue to seek cost efficiencies, just like any other company. We remain confident about the future of e-commerce in Kenya and Africa and will continue to offer our services to consumers and vendors through Jumia.” Jumia eased into the discontinuation of its food delivery business by ceasing operations in Ghana, Senegal, and Egypt in early 2023. By the end of 2023, it had fully exited the business and removed the Jumia Food app from app stores. The company said food delivery was not sustainable, as it was forced to compete with more aggressive players. Jumia slashes operational losses in Q4, but profitability remains out of reach Under the leadership of Francis Dufay, Jumia has emphasised cost discipline and cutting operational costs. Its Q4 2023 report, released today, showed that the company is making progress, with operational losses down to $4.5 million for the quarter and cuts in its advertising expense. Inflation and currency devaluation in some of its key markets continue to pose a challenge as revenue and gross merchandise value, a metric that represents the value of all goods sold on the platform, reduced. Nevertheless, the company insists that cost discipline and some positive signs in other markets will be crucial in reaching profitability.
Read MoreJumia slashes operational losses in Q4, but profitability remains out of reach
Jumia, one of Africa’s most prominent e-commerce businesses, cut its operating losses in Q4 2023 to $4.5 million after several important strategic changes, but there are still questions about profitability. One difficult decision it made in Q4 was shutting down Jumia Food, given the tough macroeconomics of the food delivery business. It also reduced its workforce and moved away from a focus on low-ticket items. Nevertheless, profitability has remained elusive in a Q4 where the company lost 500,000 active customers compared to the same period last quarter. Key takeaways: Jumia’s reported revenue of $59.4 million for the quarter It cut its operational losses to $4.5 million Quarterly active users declined to 2.3 million Under Francis Dufay, who was hired as CEO in February 2023, the firm continues to demonstrate impressive cost discipline and improve cash utilisation. “We believe that Jumia is now a much leaner, more agile and more focused company. We have reevaluated our portfolio and made tough decisions regarding business activities that did not bring the right value,” the company said in its statement. The company reduced its sales and advertising spend to $6.2 million, reducing advertising on consumer incentives like vouchers and free shipping. The drop in advertising spending is 62.8% compared to Q3 2022. Its general and administrative spending was also down to $12.3 million. Its Gross Merchandise Value, a measure of the value of all goods bought on its platform, declined to $233.3 million. The company blamed the reduction on currency devaluation across markets. “Eight out of ten local currencies in our countries of operation depreciated against the US Dollar in 2023, compared to 2022,” Jumia said in its financial report. High inflation rates and currency depreciation impacted the purchasing power of customers. However, the firm experienced growth in commissions driven by corporate sales to local and regional retailers and distributors in some countries it operates in. “We are seeing signs of stability and growth in other markets,” Dufay said in the earnings call that was held today after the results were released. In terms of runway, Jumia has a cash balance of $35.5 million and a liquidity position of $120.6 million. A bright spot in its report is the growth in JumiaPay transactions which reached $3 million in the fourth quarter of 2023, up 41% year-over-year. Dufay said the company was exploring plans to roll Jumia Pay delivery in Nigeria as he estimates that 50% of transactions could be cashless by 2024 ending.
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2024 ways to change SASSA bank details and names
Changing South African Social Security Agency (SASSA) grant banking details is a straightforward process that ensures your grant payments are directed to the correct account. If you’re an approved beneficiary of the SASSA SRD R350 Grant and need to change or update your bank details and names, follow these steps: 1. Visit the Official SASSA Website To initiate the change SASSA bank details process, go to the official website at (https://srd.sassa.gov.za/said). Scroll down to where you see the following in the picture below 2. Submit your ID number On the website, locate the designated box provided for ID Number submission. Enter your ID Number accurately and double-check for any errors. 3. Receive a secure link via SMS After submitting your ID Number, you’ll receive an SMS containing a secure link unique to you. This link will be sent to the mobile phone number you provided during the grant application process. 4. Click on the secure link to continue process to change SASSA bank details Access the link provided in the SMS and carefully follow the instructions provided. This link will direct you to the necessary steps to change SASSA banking details securely. 5. Verify bank account ownership If you opt to receive payments into a bank account, ensure that the account belongs to you. SASSA strictly prohibits payments into accounts owned by another individual. 6. Verify mobile phone ownership to complete the process to change SASSA bank details For those choosing the money transfer option via major banks, confirm that the mobile phone number receiving the SMS is registered in your name. SASSA does not transfer grants to phone numbers registered to another person. 7. Note future payment usage Understand that the updated banking details will only be used for future payments, following verification. Changing or correcting name details for SRD SASSA In addition to changing banking details, applicants who were declined due to incorrect names and surnames can also request updates. Follow the same process outlined above, ensuring that your ID Number and personal information match the details on your South African green ID Document or Smart ID Card. Your name and surname will only be updated if they correspond with records in the Department of Home Affairs database. Final thoughts on the process to change SASSA bank details Following these steps diligently, beneficiaries can ensure that their SASSA grant payments are directed to the correct account and that their personal information is accurately reflected in the system.
Read MoreAI Regulation is premature for Africa, says new study by Qubit Hub
For four days in November 2023, Africa’s technology leaders convened in Addis Ababa, the Ethiopian capital, to discuss the continent’s digital future. AI was at the top of the agenda. Though the leaders acknowledged that the rapidly growing technology “can stimulate economic growth” on the continent, they still made a case for regulation as part of a Continental Strategy. While the conversation on AI regulation in Africa—like the rest of the world—is expected, a new study by Qubit Hub, an African-based AI research, innovation, and development lab, argues that focusing on building a strong foundation is crucial before introducing policies. The study claims policymakers should prioritize improving the state of the AI ecosystem. Countries like Mauritius and Egypt have dedicated national strategies to technology. “Policy initiatives should be geared towards expanding computing facilities and internet connectivity, funding data centres, advancing the capabilities of Africa’s talent, and instituting policies that ameliorate data sets constraints,” the report argues. Using a ‘four horsemen’ operational system framework, the report analyzed the crucial components of the AI ecosystem: data sets and data systems, digital infrastructure, talent, and markets. At the foundation of any AI model is data. But Africa grapples with limited online data sets, according to the report. These limitations not only result in biased AI systems but also hinder the development of AI products for the African market since AI systems perform best when trained on data that is representative of the target user. While the report notes that there have been efforts to collect indigenous African data, it argues that there needs to be careful thinking about how this data is collected, handled, and stored to safeguard its authenticity. AI models need data infrastructure to work, but Africa doesn’t have enough. According to the Data Center Map, Africa has 95 data centers out of 5,065 globally. Of the top 500 most powerful commercially available computer systems known to us, only one is located in Africa – in Morocco. The report makes a case for more investment in data infrastructure on the continent, noting existing efforts to bridge the gap: Africa Data Centre’s $500 million investment that will create ten hyperscale data centres sprout across 10 African countries within the next two years. As AI adoption continues to grow on the continent, with AI-focused startups springing up, talent is needed to advance the design and development of solutions specific to Africa. The talent value chain in Africa is at the bottom of the heap, and though this has the potential for mass job creation, it poses unique challenges that may call for a rethink of African labour laws. One of the major issues to come out of Africa, and Kenya in particular, was the horrible working conditions that people hired to moderate the OpenAI platform and train its AI models, were subjected to. The report also argues that for artificial intelligence to be properly maximized in the African market, there has to be more awareness of the benefits of the technology and its use cases should reflect the African realities. AI-focused solutions should address real-world challenges such as rural development, low literacy levels, and financial inclusion, among others. More importantly, efforts should be directed towards ensuring the commercial viability of these solutions. The big question is whether AI solutions can be profitable in Africa. The report proposes a two-way solution: innovation that reflects the socio-economic challenges of users and a focus on niche markets.
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11 effective ways to prevent your iPhone from getting hot 2024
In today’s digital age, iPhones have become indispensable companions for many, serving as communication tools, entertainment hubs, and productivity aids. However, one common issue that iPhone users encounter is the device getting hot, often due to prolonged usage, user habits, or environmental factors. Excessive heat isn’t only uncomfortable to handle,it can also potentially damage the device’s components. To help you keep your iPhone running smoothly and coolly, here are eleven effective strategies to prevent your iPhone from overheating. 1. Avoid direct sunlight Direct sunlight can cause your iPhone to heat up rapidly, so it’s essential to keep it shaded or indoors whenever possible to prevent the iPhone from getting hot. 2. Remove or replace iPhone pouch/case Thick or insulated cases can trap heat around your iPhone, worsening the problem of the iPhone getting hot. Temporarily remove the case to allow for better airflow and heat dissipation. On the other hand, try getting well-perforated pouches as opposed to largely enclosed ones. 3. Close background apps to prevent iPhone from getting hot Running multiple apps in the background can strain your iPhone’s processor and contribute to the iPhone getting hot. Close unnecessary apps to ease this strain. 4. Disable background app refresh Background app refresh can cause your iPhone to work harder than necessary, leading to the iPhone getting heated. Disable this feature to conserve resources and reduce heat generation. 5. Turn off location services or hotspot Continuous use of GPS and location services or hotspots can be a major culprit behind the iPhone getting hot. Disable location services for apps that don’t require them, and put off your hotspot when it’s not in active use. These actions will reduce strain on your device. 6. Lower screen brightness High screen brightness not only drains battery life but also increases the likelihood of the iPhone getting hot. Lower the screen brightness to reduce heat generation. 7. Update iOS Keeping your iPhone’s operating system up to date is crucial for addressing potential software-related issues, including the iPhone getting hot. Regularly check for and install iOS updates to ensure optimal performance. 8. Avoid Processor-Intensive tasks to prevent iPhone getting hot Engaging in processor-intensive activities like gaming or video streaming for extended periods can lead to the iPhone heating up. Limit these activities to prevent overheating. 9. Turn off unused connectivity features Bluetooth, Wi-Fi, and cellular data can all contribute to the iPhone heating up, especially when actively searching for connections. Disable these features when not in use to conserve battery and reduce heat. 10. Stop using iPhone while charging Using your iPhone while it’s charging can increase heat generation, especially if you’re engaging in processor-intensive tasks. To prevent the iPhone from heating while charging, it’s advisable to avoid using it altogether or limit usage to essential tasks like answering calls or messages. Letting your iPhone charge undisturbed can help maintain a cooler operating temperature and ensure efficient charging. 11. Give your iPhone a break to preventing it from getting hot If you notice your iPhone is heating, it’s essential to give it a rest. Turn off the device and allow it to cool down before resuming use to prevent long-term damage. Final thoughts on preventing iPhone getting hot These simple yet effective strategies will significantly reduce the likelihood of your iPhone getting hot and ensure that it remains cool and functional. Remember to stay vigilant and proactive in managing your iPhone’s temperature, as prevention is key to maintaining optimal performance and longevity for your device.
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Open banking can change Nigeria’s financial industry. Why is the CBN stalling on it?
Open banking, which allows banks to share customer data consensually with fintechs, is believed to be a game-changer for Nigeria’s financial space. Yet the country’s banking regulator, the Central Bank of Nigeria, is moving slowly on its adoption. Three years ago, Nigeria’s Central Bank released the first draft of a regulatory framework for open banking. It was a pivotal moment, and Nigeria enjoyed the privilege of becoming the first African country to adopt the practice last year. It was commendable work from a regulator that’s often on the receiving end of criticism from the public. Yet, months after moving quickly to adopt a framework, the apex bank has stalled on introducing a much-needed standard, keeping open banking in theory. A standard will ideally create a uniform way of transferring data through APIs and a public register of all the participants in open banking. Standards are very important. For example, before the IBM standard, the personal computer industry operated multiple user interfaces, making PC parts very expensive and out of reach for most people. The IBM standard helped create the uniformity that the modern PC industry was built on. Open banking needs this uniformity and the CBN’s apparent lack of urgency towards creating this standard risks delaying a pivotal step towards financial inclusion. How can open banking change Nigeria? Take lending as an example. Loans contribute significantly to the income of financial institutions, and to ensure that they are repaid, banks like to have data points on the customers to make informed lending decisions. So far, bank-led lending has resulted in low credit penetration, with as much as 70% of bank account holders locked out from accessible credit. In the last few years, several fintechs have entered the credit market to fix this despite having limited data. The result has been a mixed bag of sub-prime loans and predatory collection methods. With open banking, lending fintechs would receive data (transaction history, consumption patterns) from banks—there are at least 120 million bank customers in Nigeria—to assess creditworthiness and also help create a much-needed credit score for Nigerians. Fintechs can also create new types of personalised financial products backed by data, as Nigerian banks are not incentivised to innovate given that the majority of their profits come from non-banking sources. In what was a record year for profits, most banks made money from the devaluation of the naira last year, with minimal income from core banking interests or new products. Nigeria is already a prime market, with startups like Okra, Mono and Stitch offering innovative solutions similar to open banking due to demand. Real-time payments, a crucial enabler, are booming. Last year, Nigeria’s largest real-time payment infrastructure processed 9.6 billion transactions, according to data seen by TechCabal. Chart by Stephen Agwaibor/TC Insights Should the CBN regulate open banking? There are concerns that because open banking relies on technology, an ever-changing field, the CBN should not regulate it; instead, it should be regulated by Nigeria’s data protection agency, the Nigeria Data Protection Commission (NDPC), as data privacy is a foundational pillar of open banking. “The central bank’s job is to implement policies, not technology,” said David Peterside, the co-founder of Okra, an open banking startup. The CBN’s guidelines from last year focused on two main issues; availability of technology and security. Peterside added that the CBN should instead focus on making the banks and API providers partner because the CBN’s regulatory burden would require banks to build APIs, inflating costs for the banks. Large British banks have spent more than £500 million on implementing open banking. With startups already providing similar services, banks can forgo this bill. But given the sensitivity of financial information that would be shared, there is no ideal way that the CBN would not be involved in a regulatory capacity, said Ikemesit Effiong, head of research at SBM Intelligence, a Lagos-based think tank. “Nigeria is a bank-led financial system, so it will not be unusual for the CBN to give out the regulations. However, violations will be [the responsibility] of the data protection agency,” Babatunde Obrimah, chief operating officer of the Fintech Association of Nigeria, told TechCabal. He added that because banks, fintechs, and mobile money operators obtain licences from the CBN, it is the only body to regulate them properly, but interoperability must be ensured. What’s in it for the banks? Right now, there is fear in the banking industry that the implementation of open banking would inevitably lead to more competition. “It’s the same pie that everyone is eating out of, and you don’t want anyone to eat into your part,” is how an industry insider puts it. This is, however, an unfounded fear because most Nigerians use legacy banks and fintechs, Effiong said. A similar example of user inertia is how the Nigerian Communications Commission (NCC) introduced SIM porting a decade ago, allowing customers to switch network providers easily, but less than 2% of customers have ported since. Revenue sharing, the prospect of mergers and acquisitions, and the CBN’s backing are some of the ways banks can be incentivised to share their customer’s data, Nnamdi Ifechi-Fred, a digital economy analyst at Stears, told TechCabal. Public awareness can spur the CBN Public awareness of the benefits of open banking can spur the CBN to finalise open banking. The United Kingdom became one of Europe’s leaders in open banking by increasing awareness of the benefits of open banking. Within two years, 11% of British consumers were active users of open banking. Since India’s apex bank introduced the Account Aggregator (AA) framework, which facilitates secure financial data sharing via APIs, about 60% of Indian businesses see open banking as a gateway to acquiring consumer-consented data. It has now become a staple in India and is powering the next stage of open banking—open finance. This can be replicated in Nigeria, but the CBN’s lack of a uniform standard is severely halting this progress. Fintechs have already integrated and partnered with banks, but the current reality of open banking cannot power
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