Nigerians have been urged to embrace electronic payment solutions, as a means of promoting business across the country.

Managing Director for E-Transact, Mr. Valentine Obi, made the call in Lagos last week at the African Banking Technology Conference tagged AITEC 2008.

According to him, heavy financial transactions still takes place outside the banking sector, but explained that the situation is improving, going by the recent drive for e-payment solutions across countries.

Formerly, transactions in banks were delayed, Obi said, explaining that it could take days to clear a cheque in the banking hall, but added that the delays are gradually been reduced with the emphasis on electronic payment system.

Mr. Lloyd Chrisholm, vice president, Banking Strategic Engagement for Europe, Middle East and Africa for SAP AG, said the essence of the AITEC exhibition and seminar is to bring together, international and local expertise to showcase modern technology solution for the financial market and to use AITEC to challenge the Nigeria financial sector of opportunities in growing the financial economy.

International speakers presented papers on leading edge innovation technology for the banking sector.

We are bringing latest technologies that are appropriate for their business that will enable them provide the best services for their clients and to compete favourably in a borderless world, Chrisholm said.

"As a result the use of Internet today and the fast deployment of telecoms, we are all working in a borderless world as far as business is concerned. Nigeria banks and banks in Africa have to be conscious that as the economy grows, the global competition increases because foreign banks will be coming to do business in Africa, Nigeria inclusive. There will be increased competition within the Nigerian banks as well."

Chrisholm called for proper planning and investment in new technologies, explaining that the worst thing any investor could do is to invest in technology without proper planning for the long term gains. Proper planning, he said, ensures growth and expansion of any organization. Without proper planning, investors and oganisations are likely to spend more money on a particular technology.

He said going by the consolidated banks in Nigeria, it is estimated that Nigerian banks will spend about a quarter of a billion dollars in just one year.

This, he said, goes to show that there is enormous responsibility for the banking sector professionals and managers to make the right purchasing decision of banking application solutions that will drive the right business.

The essence of the AITEC seminar and exhibition, he said, is to showcase new technologies that will enable bank managers take the right decision.

Commending the Nigerian banks for their successful consolidation exercise, Chrisholm said consolidation has helped banks to have huge budget for investment in technologies that will further drive the banking sector.

The challenge before the banks, he said is that there is so much strategic decisions to be made by bank managers because there is pressure on the banks to think of solving the problems of the unbanked.

The majority of the population is unbanked and are excluded from the banking system and that is a big challenge for the banking sector today, he said.

On the issue of competition, he said it is a healthy development for the industry. CBN has been very proactive and has given the Nigerian banks new life, so it is up to the banks to meet up with the opportunities set for them by Central Bank of Nigeria, he said..

Nigerians, he said are the most open to new ideas and new technologies. But the basic problem I see in Nigeria is that of electric power. Power drives everything in any economy, but in Nigeria, electricity is holding back so many businesses, including the financial sector businesses. ATMs are down regularly because of poor power supply. Operators invest so much on power generation and at the end, they pass the cost to customers who suffer it, he said.