32yrs after: FMBN eases mortgage access with core banking app

Experts and real estate practitioners have been assessing the newly launched core banking app by the Federal Mortgage Bank of Nigeria (FMBN), saying it has the potential to ease access to mortgage.

This is coming amidst concerns over technology adoption in Nigeria’s mortgage sector which is faced with several challenges.

Additionally, findings by Daily Trust show that concerns about data protection and privacy, as well as the lack of a unified regulatory framework for digital lending, also pose obstacles.

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These challenges hinder the widespread use of technology to improve mortgage access and efficiency.

Subsequently, amid a rapidly changing digital landscape where technology is transforming how people interact with financial systems, banks have always sought ways to optimise service delivery and make banking easier for their customers.

In the same vein, the Federal Mortgage Bank of Nigeria (FMBN), took the initiative to implement digital operations and modernise access to housing finance by deploying core banking applications to ease mortgage access for Nigerians.

What is a core banking application?

A core banking is a back-end system that connects multiple branches of the same bank together to deliver operations like loan management, withdrawals, deposits, daily banking transactions, and payments in real time.

The application offers a customer experience of the bank as a single entity, regardless of their location – with the aim to provide more independence for the customers in terms of using their accounts and conducting transactions from any location in the world.

Core banking applications are designed to provide seamless integration and advanced tools for compliance and innovation across different banking sectors.

The key core banking services, which are integral to the banking infrastructure, include new account creation, account management, customer relationship management, interest calculations, deposits and withdrawals processing, loan issuing and servicing, among others.

FMBN internet banking

Findings by Daily Trust show that FMBN internet banking platform, accessible via its website, offers round-the-clock access to key mortgage services.

Subsequently, NHF contributors can log in at their convenience to remit contributions, apply for loans, request account statements or track their financial activities. This digital freedom means users are no longer limited by banking hours or the need to physically visit FMBN branches.

To ensure accessibility across demographics and locations, the platform supports multiple payment options, including card transactions, USSD codes and bank transfers through Remita and Etransact.

These options ensure that even contributors in rural or underbanked areas can meet their NHF obligations with ease. The platform’s user-friendly interface simplifies the experience. Users can view their contribution history, monitor loan balances, and initiate loan or refund applications, all through a clean and intuitive dashboard.

Onboarding is equally seamless for both individuals and corporate employers.

Further checks by Daily Trust show that for individuals, the process begins with selecting the contributor type (employed or self-employed), providing personal information such as an email address, phone number and Bank Verification Number (BVN), followed by OTP verification.

For corporate organisations however, HR managers or payroll officers can register with a verified email, fill out a tailored form, and gain access to tools that enable the bulk upload of employee records, remittance tracking and compliance reporting.

This digital shift not only removes paperwork but also builds digital literacy and confidence among contributors, which is crucial as Nigeria becomes increasingly connected.

The bank recently noted that the launch of the internet banking platform comes at a crucial time for Nigeria.

The Managing Director, Shehu Usman Osidi, noted that, “With a large youth population entering the workforce and a rapidly growing urban population, the demand for accessible mortgage solutions is at an all-time high. Traditional processes can no longer meet the scale or speed required to address the national housing crisis.

“In the past, the path to homeownership for a teacher in Lagos, a tailor in Kano or a mechanic in Port Harcourt was long and uncertain. Endless visits to physical branches, unexplained delays and the lack of transparency made homeownership feel like a far-off dream. Today, that same journey can begin during a lunch break, with a few taps on a smartphone.

“This shift represents more than convenience; it symbolises dignity, empowerment, and hope. The FMBN Internet Banking platform brings mortgage finance into the 21st century, aligning it with the lifestyles and expectations of a modern, mobile-first population.”

Speaking further, he noted that, “Behind the scenes, the Core Banking Application (CBA) of FMBN powers the efficiency of the internet banking platform. The Custom-built fm back-end system automates every aspect of the bank’s services, including contributor and employer registration, loan disbursement and repayment tracking, contribution monitoring and refund processing.

“The CBA also supports advanced modules such as Treasury Management, Financial Reporting, Risk Accreditation and Human Resources Management. This makes the CBA not just a banking tool but a comprehensive digital infrastructure that enhances both operational performance and organisational agility.

“By moving services online, FMBN has achieved something remarkable; it has made housing finance accessible to Nigeria’s vast informal sector. Market women, artisans and freelance professionals who were once excluded from formal mortgage systems can now register and contribute with ease, their economic status no longer a barrier to homeownership.”

A further assessment of the application shows that it brings more clarity to contributors. In the past, some workers did not know the status of their NHF contributions or whether employers were faithfully remitting on their behalf.

With the innovation, contributors are provided real-time updates on contribution history, balances and payment confirmations.

Also, with the digital tools, employees can confirm remittance compliance, download transaction histories and manage employee accounts with precision just as the platform acts as a digital gateway to all of FMBN’s mortgage loan offerings, including; NHF Mortgage Loans, Home Renovation Loans, Construction Loans and Rent-to-Own Products.

Applicants can submit requests, upload documents and monitor application status without stepping into a physical branch of FMBN.

Once approved, loan repayment is equally convenient. Borrowers can log in to view repayment schedules and make payments online, consequently encouraging timely repayment and reducing the risk of default. This system not only benefits contributors but also ensures a more stable and sustainable mortgage portfolio for the bank.

Similarly, through the internet banking platform, FMBN now enables contributors to initiate refund requests directly through the portal. Eligible contributors who have retired, completed their repayment cycle or met specific criteria can track their application from start to finish.

The funds are deposited directly into their registered bank accounts once approved. This digital refund process eliminates long-standing frustrations associated with delayed or lost refunds, enhancing service satisfaction and reinforcing the bank’s credibility.

Subsequently, by removing physical and bureaucratic barriers, the FMBN internet banking platform opens the NHF scheme to underserved populations like artisans and tradespeople, informal sector workers, self-employed professionals as well as rural residents with limited access to traditional banks.

These groups can now register independently, make flexible contributions and even access non-interest loan products aligned with their income patterns.

Additionally, through its specialised NHF Diaspora Mortgage Loan product on the verge of a launch, diaspora Nigerians will be able to register, contribute to the NHF scheme and access mortgage services remotely. This will provide a secure platform for overseas citizens to invest in real estate back home while deepening their ties with Nigeria.

App will ensure sustainability, prevent glitches – Expert

Reacting to the new innovation, a real estate expert with specialty in mortgage financing, Adewale Semiu, urged the FMBN to ensure sustainability of the new technology and avoid glitches that will be costly to customer data and other transactions.

He noted that, “One unpleasant experience in the introduction of new technologies in Nigeria especially in the banking sector is network glitches that frustrate seamless services. This is one thing the FMBN must look into.

“This platform will also serve diasporans seeking mortgage access, as such it is important that it is sustainable with the assurance that people’s data is protected.”

He further called on the bank to employ credible individuals to handle operations of the application to avoid complaints and other issues that will put the bank in bad light.