Nigeria goes live with Bsystems Collateral Registry System
By Nana Appiah Acquaye, Accra, Ghana
Africa’s most populous nation, Nigeria, joins three African countries including Ghana, Liberia and Malawi to become the fourth country to roll onto the Collateral Registry System developed by Ghanaian technology solution firm Bsystems.
As the Registry goes live online, financial institutions in Nigeria can now search the system which contains data of registered collaterals of borrowers, to ascertain whether the same collaterals have not been used to cover another borrowing. The data mostly compiled and controlled by the central bank is made available to all commercial banks and microfinance institutions.
Nigeria’s Collateral Registry system is an upgrade of the first registry solution, which offers customers the opportunity to get registered, have a search done and effect payment online through mobile money platforms and interswitch system.
Speaking exclusively to Biztechafrica in Accra, the Chief Executive Officer of Bsystem Solutions, Thomas Baafi revealed that following the World Bank/IFC initiative to develop regulation and laws that would help identify African countries as having congenial and effective systems that enhance and promote the doing of business, Bsystems as a tech firm with an impressive 15 years track record of developing reliable and efficient cutting edge banking and financial technology solutions, has been a partner in developing and installing the collateral registry solutions in Ghana , Liberia, Malawi and recently Nigeria.
“We just gone live with one in Nigeria, we have just finish with Nigeria with the Central Bank (CBN), we have installed our solution there, for banks in Nigeria to use”.
According to Mr Baafi, the implementation of a collateral registry system in these countries has yielded huge economic gains not for the regulators, but also businesses and other professional bodies.
He said the regulators are happy with our solution, first it makes them money, because customers pay for the cost of registering and searching on the system and also reduces risk profile and allows banks to channel more credit to businesses.
One of the greatest advantages of the Collateral Registry is the flexibility it allows lenders to accept movable items such as household appliances, vehicles, laptops, which hitherto could not be used as guarantees to borrow.
Other items include inventory and receivables, investment property, business assets, household assets and machinery and equipment. Movables also include intangible properties such as patent, license, copyright, goodwill and financial instruments such as stocks, bonds and so on.
Interestingly among the four countries using collateral registry system, only Ghana allows the registration of both moveable and immovable assets. Liberia, Malawi and Nigeria only deal with movable assets tend to pose less stress than immovable asset like land property.