News
Neobank, Carbon, Shuts Down Debit Card Operations in Nigeria
Nigerian fintech company, Carbon, has announced the cessation of its debit card operations in Nigeria, two years after their initial launch. This decision was disclosed by Carbon’s co-founder and CEO, Ngozi Dozie, via a Substack post on Wednesday.
Although Dozie did not explicitly detail the reasons behind discontinuing the card service, his post suggested that the introduction of the cards might have been a strategic misstep. Additionally, the current forex challenges, which increased the operational costs due to the dollar-denominated card expenses, likely played a significant role in this decision.
“When I take a step back with the benefit of hindsight (and a card operation bill denominated in USD$), I question why practically all neobanks are pushing cards or even getting into it. Was this the right strategy for ALL of us, or was Carbon just unlucky?” Dozie wrote.
Founders’ Errors
Dozie reflected on common mistakes made by founders, including making decisions based on insufficient information without proper analysis. He admitted that if he had thoroughly analyzed the industry, he might have avoided launching the card operations.
“Nigerians already have many debit cards,” he acknowledged. “If I had done the analysis…and truly evaluated the opportunity, I don’t think I would have been that gung-ho about pushing a strategy to provide consumers with their fifth debit card. The decision might have been the same, but perhaps with more respect for the potential risks.”
Dozie also noted that he might have believed that offering a debit card would increase customer trust in Carbon, akin to traditional banks. He advised fintech startups to critically analyze the industry before venturing into debit card offerings.
Context and Comparison
Several other fintech companies like Kuda, Moniepoint, and OPay have rolled out debit cards for their customers. Unlike Carbon, which partnered with the international card provider Visa, these companies have opted for Verve cards, providing them with a local advantage amidst the current forex issues.
When Carbon launched its debit cards in August 2021, it marked a significant step in transitioning from Nigeria’s biggest digital lender to a microfinance bank licensed by the CBN. The debit card allowed Carbon bank account holders to access funds via online and offline channels like ATMs and POS machines. Carbon aimed to enhance user experience, a common issue among customers of financial institutions, and build on its customer base of 3 million users by offering a more comprehensive banking experience.
Carbon’s decision to discontinue its debit card operations underscores the complex challenges fintech companies face in balancing innovative services with operational realities. This move serves as a cautionary tale for other fintech startups considering similar ventures, highlighting the importance of thorough market analysis and strategic planning.
News
Trump Appoints Linda McMahon and Mehmet Oz to High-Profile Roles
US President-elect Donald Trump has nominated Linda McMahon, co-founder of World Wrestling Entertainment (WWE) and a long-time ally, as his pick for education secretary. Mehmet Oz, the celebrity doctor and former TV host, has been chosen to head the Centers for Medicare and Medicaid Services (CMS).
McMahon, who led the Small Business Administration during Trump’s first term, is known for her close ties to the president-elect. She has limited experience in education but has served on Connecticut’s state board of education and currently chairs the pro-Trump America First Policy Institute. Trump has tasked her with advancing his controversial plan to dismantle the Department of Education and return educational oversight to the states.
On Truth Social, Trump praised McMahon, highlighting her advocacy for parental rights and her commitment to decentralizing federal control over education. With a Republican-majority Senate, her confirmation is expected to proceed smoothly.
Dr. Oz’s appointment to CMS marks another headline-grabbing selection. Known for his television career and health advice, Oz’s approach has faced scrutiny from medical professionals in the past. His role will involve overseeing critical federal healthcare programs, including Medicare and Medicaid, which serve millions of Americans.
Trump also announced Howard Lutnick, CEO of Cantor Fitzgerald, as his pick for commerce secretary, underscoring a pattern of selecting loyal allies and high-profile figures for his administration.
News
Jimmy Lai Denies Foreign Collusion in Landmark Hong Kong Trial
Jimmy Lai, the 76-year-old pro-democracy advocate and founder of Hong Kong’s now-shuttered Apple Daily, has denied allegations of collusion with foreign forces during his first testimony in a national security trial that could result in a life sentence.
Facing accusations tied to his foreign contacts, including former U.S. Vice President Mike Pence and Taiwan’s ex-President Tsai Ing-wen, Lai firmly stated in court on Wednesday, “Never.”
Dressed in a brown jacket and glasses, Lai appeared in good spirits despite visibly losing weight since his arrest. Smiling and waving to supporters outside the courtroom, he received warm encouragement from dozens of well-wishers who queued to show their solidarity.
When questioned about his interactions with international figures, Lai said his meetings were purely informational. Regarding a meeting with Pence, Lai stated, “I would just relay to him what happened in Hong Kong when he asked me.” As for then U.S. Secretary of State Mike Pompeo, he explained that he asked Pompeo “not to do something but to say something, to voice support for Hong Kong.”
Lai is already serving multiple sentences for his alleged role in the 2019 pro-democracy protests that prompted Beijing to implement the sweeping National Security Law (NSL). His trial follows the sentencing of 45 activists from the “Hong Kong 47” group earlier this week, including prominent figures Benny Tai and Joshua Wong.
News
Prosecutors Suggest Delaying Trump Sentencing Until Post-Presidency
New York prosecutors have indicated they will oppose efforts by President-elect Donald Trump to overturn his criminal conviction but are open to deferring his sentencing until the end of his upcoming presidential term in 2029.
The Manhattan district attorney’s office filed a motion urging Justice Juan Merchan to consider postponing Trump’s sentencing, currently set for November 26, while rejecting any dismissal of the conviction. Prosecutors suggested deferring the proceedings to balance constitutional concerns surrounding the conviction of a sitting president.
Trump was found guilty in May of falsifying business records in connection with alleged attempts to conceal a potential sex scandal during his 2016 presidential campaign. The case, the only one of four criminal prosecutions against Trump to reach a guilty verdict, has become a legal flashpoint as he prepares for his second term in the White House.
Trump’s legal team argues for the conviction’s dismissal, citing presidential immunity following a U.S. Supreme Court ruling earlier this year that grants broad protections for official acts. Prosecutors countered that the charges are unrelated to presidential duties and predate the ruling.
Mitchell Epner, a former prosecutor, commented that the DA’s proposal essentially “pauses the case until after Trump leaves office,” emphasizing that it avoids dismissal while addressing constitutional concerns.
If accepted, this proposal could delay Trump’s sentencing until after January 20, 2029, when his presidential term concludes. Legal experts, including former Manhattan prosecutor Diana Florence, anticipate that the November hearing will likely be rescheduled.
Potential sentences range from fines and probation to a maximum of four years in prison. However, with Trump’s impending inauguration and constitutional questions at play, the prospect of any immediate legal repercussions remains uncertain.
Meanwhile, Trump spokesperson Steven Cheung declared the situation a “total and definitive victory,” although Justice Merchan has yet to issue a ruling on the matter.
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