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.
In a devastating incident in eastern India, at least 46 people, including 37 children and seven women, have drowned while celebrating the Hindu Jivitputrika festival. The fatalities, which occurred across 15 districts within the past 24 hours, resulted from victims ritually bathing in rivers and ponds swollen by recent flooding.
The three-day festival, which honors children’s wellbeing, is traditionally marked by mothers fasting and families participating in ritual baths. This year, the swollen water bodies, exacerbated by recent floods, have turned the celebratory ritual into a deadly disaster.
Local disaster management officials have expressed fears that the death toll could rise further. State authorities have promised compensation for the families and relatives of the victims.
Fatal accidents during religious festivals are not uncommon in India, where large gatherings often take place with insufficient safety measures. This tragic incident serves as a stark reminder of the dangers posed by such gatherings, especially during adverse weather conditions.
The Israel Defense Forces (IDF) have conducted airstrikes in Beirut, reportedly killing Mohammad Hussein Surur, a senior Hezbollah air unit leader. The Lebanese health ministry confirmed two deaths and 15 injuries from the attack. The strikes come amid escalating violence between Israel and Hezbollah, with both sides exchanging fire throughout the night and into the morning.
Israeli Prime Minister Benjamin Netanyahu stated that the IDF would continue to fight “with full force” against Hezbollah, aiming to dismantle the Iran-backed militant group. This marks a significant intensification of hostilities between the two sides, which have been exchanging rockets and airstrikes for days. The Lebanese health ministry also reported that 28 people were killed today by Israeli airstrikes.
In retaliation, Hezbollah launched 80 missiles targeting northern Israeli cities, including Safed. Israeli authorities have reported no casualties but noted significant property damage in Safed and Rosh Pina.
Amid the intensifying conflict, U.S. Defense Secretary Lloyd Austin renewed calls for a diplomatic solution. The U.S., along with 11 other allied nations, has urged both Israel and Hezbollah to agree to a ceasefire to prevent further escalation and civilian casualties.
Ferry travel between the Isle of Man and Lancashire continues to face disruption due to strong winds over the Irish Sea. The Isle of Man Steam Packet Company has cancelled Thursday’s 08:45 BST sailing of the Manxman to Heysham and its scheduled 14:15 return journey. This follows the cancellation of the vessel’s return trip from the Lancashire port on Wednesday evening.
The disruptions have affected postal services, with the Isle of Man Post Office reporting delays in deliveries from the UK. While local deliveries within the island remain unaffected, items posted on Wednesday for UK delivery may not reach Royal Mail’s network in time for Friday delivery.
Additionally, the ferry cancellations have caused a delay in newspaper deliveries, with no papers available on the island on Thursday, as confirmed by the island’s wholesale distributor.
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