Banking transactions will, from next month, be fully insured and risks associated with them underwritten by insurance companies, the Managing Director, Nigeria Interbank Settlement System (NIBSS) ,Ade Shonubi, has said.
Shonubi, who spoke at a briefing in Lagos, at the weekend, said banks and NIBSS approached insurance companies and operators, who accepted to underwrite the risks that come with each financial transaction. He added that four banks and three telecommunication firms (telcos) were already committed to the project, while a final approval from the Central Bank of Nigeria (CBN) was expected early next month before the project’s commencement.
He said the insurance cover, would also include transactions done via mobile money channels, like the Unstructured Supplementary Service Data (USSD), which is a global system for mobile (GSM) communication technology used to send text and payment between a mobile phone.
“All we are saying is that we want to make money transfers as simple as possible especially for USSD where we set a maximum limit to start. We have gone to the insurance industry and they are willing to underwrite the transaction risks. So hopefully, we would start this idea of insurance cover for financial transactions. Read more