Customers of Apple’s banking service receive an annual percentage yield (APY) of 4.15%, which is higher than the 0.06% average interest rate provided by most conventional banks.

This move by Apple has the potential to upend the banking sector and challenge the dominance of Wall Street banks, and it is already taking place. Within the past day, depositors from other banks withdrew almost $60 billion from three US banks, and it is unknown how much more will be withdrawn from these other conventional banks. Apple basically started a bank run overnight, but disruption is something that is allowed in America.

Apple’s foray into the banking sector is not unexpected given the company’s enormous cash reserves, which are estimated to be over $195 billion and were generating interest in how they’d spend or use the money. Due to its strong financial position, Apple will be able to fund its banking activities and provide clients with rates that are affordable.

Additionally, with more than 1 billion users worldwide, Apple has a sizable client base that might translate into a sizable customer base for its banking business and perhaps disrupt other Fintechs as well if/when they enter other fintech verticals.

Many industry analysts believe that Apple’s banking service would upend the established banking paradigm, which has caused a stir in the banking sector since its inception. Wall Street banks, who have long dominated the banking business, will be the ones to be most affected by Apple’s foray into the sector.

Apple, which has a strong brand reputation and a sizable client base, may suddenly present these banks with fierce competition.

It is important to keep in mind that there are hazards associated with Apple’s banking service. The banking sector is heavily regulated, and Apple is subject to a number of rules and specifications. To protect the security of its customers’ money, the corporation will also need to make significant infrastructure and security investments.

Apple’s foray into the banking sector has the potential to upend the sector and challenge Wall Street banks’ hegemony. Apple’s banking service might generate a lot of interest from clients looking for higher interest rates given its enormous financial resources and consumer base.

We may anticipate strong rivalry in the banking sector in the years to come since established banks will not willingly cede their market position. Customers would ultimately gain the most from this competition since they will have more selections and better prices to choose from.

However, it set a cap of N500,000 on the amount the banks could take in.

The CBN insisted that the previous currencies were no longer accepted as legal money.

According to a bank source, the CBN instructed the banks to collect the funds instead of bringing them to the CBN office because it was impossible to gain entry to the bank.

A CBN official said, “Go to your bank but fill out the form before you go. Go with the reference code you generate. With your code, banks will collect it from you. But if it is more than 500,000, you will go to the CBN and deposit it.”

Prior to this, the CBN launched a portal on its website and required all individuals wishing to return old notes to fill out the form and generate a code.

The previous N200 notes must now be available to Nigerians, according to a Thursday instruction from CBN Governor Godwin Emefiele.

In addition to urging Nigerians to deposit their old N500 and N1000 notes with the CBN, President Muhammadu Buhari stated that the old N200 note would be legal payment until April 10, 2023.

However, the CBN ordered banks to collect higher denominations after meeting with bank executives in response to protests that had been roiling various states over the lack of the new naira notes.

The telecom company announced that its received a letter from the Central Bank of Nigeria, CBN on 8th April 2022.

This was revealed in a statement signed by the company’s secretary, Uto Ukpanah, on Monday.

This is coming after the CBN granted the firm approval in principle to operate in November 2021.

The statement read, “We refer to our notification issued on 5 November 2021 in which we communicated receipt of the approval in principle from the CBN for Momo PSB.

“MTN Nigeria Communications Plc announces the receipt of a letter dated 8 April 2022 from the CBN addressed to Momo PSB conveying final approval to commence operations.

“The date of commencement will be communicated to the CBN in accordance with its requirements.

“MTN Nigeria affirms its commitment towards the financial inclusion agenda of the CBN and the Federal Republic of Nigeria and we are excited at this opportunity to support its fulfilment.”

CBN Governor Godwin Emefiele made this announcement at the 14th Annual Banking and Finance Conference organized by the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja on Tuesday.

He said, “To  consolidate on the growth and resilience of Nigerian banks in the last decade, your excellency, your Central Bank, will, in the next 12 months, be establishing The Nigerian International Financial Centre, NIFC.

“The NIFC will act as an international gateway for Capital and investments, driven by technology and payment system infrastructure.

“This new financial hub, will curate local and international banks to make them global champions.

“The NIFC will be a 24/7 financial centre that will complement London, New York and Singapore financial centres.

“It will enable an acceleration of our home grown initiatives such as the Infracorp Plc, the N15 trillion infrastructure fund which we will be launching in October.

“The NIFC will also complement our initiatives on the Nigerian Commodity Exchange.”

USSD is a critical channel for delivering financial services, especially for those who do not have access to physical banking infrastructure or internet services.

“Welcome to USSD Banking

“Please note, a N6.98 network charge will be applied to your account for banking services on this channel,” one notice said.

Recall that the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) in March this year reached a conclusion to charge users.

The decision was part of an agreement reached with deposit money banks following a disagreement between banks and telecom firms over USSD and other text message transaction requests.

A joint statement signed by the CBN and NCC said “USSD services for financial transactions conducted at DMBs (Deposit Money Banks) and all CBN-licensed institutions will be charged at a flat fee of N6.98 per transaction.”

The charge will be removed from users’ bank accounts and remitted to mobile network operators.