Some Fintech experts have emphasised the crucial role of Fintech innovations in driving financial inclusion and Nigeria’s ambition to become a one trillion-dollar economy.
The experts spoke at a webinar organised by the Fintech Association of Nigeria (FintechNGR) on Tuesday.
Speaking on the webinar, Dotun Adekunle, Chief Operating Officer, Opay, said that Fintech innovations are key to unlocking Nigeria’s economic growth potential.
Citing examples of countries that had achieved significant growth through Fintech, he highlighted China’s Alipay and WeChat Pay as having turned China into a cashless economy.
Adekunle noted also that India’s Unified Payments Interface (UPI) had revolutionised payments and financial services.
He stressed the need for financial inclusion, strengthening of SMEs, payment enabling, driving investment and capital mobilisation.
“Fintechs have democratised access to funding. An example is PiggyVest, which has enabled individuals to access funding for various projects.
“However, there is a need for more Fintech players in the market, because there is still room for innovation and growth,” he said.
According to the Opay boss, consolidation, mergers and acquisitions will eventually occur, but for now, more players are needed to drive innovation and growth.
He noted that niche markets and small companies could thrive alongside larger players, citing the example of a company with 20,000 users that was doing well.
“Fintech innovations have the potential to drive productivity, create jobs and support Nigeria’s economic growth. I urge stakeholders to support the growth of the sector,” Adekunle said.
Another speaker, Rashidat Adebisi, the Chief Client Officer, AXA Mansard Insurance Plc, highlighted the significant role of Fintech innovations in driving financial inclusion and economic growth.
Adebisi also noted that Fintech innovations had the potential to strengthen Small and Medium-sized Enterprises (SMEs), and enable payment solutions.
She stressed that Insurtech, a subset of Fintech, had made significant strides in improving access to financial services, and cited the example of a Fintech company that enabled farmers to sell their products online.
Talking on cyber insurance, she noted that it had huge potential, but awareness and training were crucial in preventing cybercrime.
Cyber insurance is a policy a business acquires to provide remediation and financial reimbursement in the wake of a cyber attack.
Adebisi emphasised that cyber insurance was not just about paying a premium, but also about proactive measures to prevent cyber attacks.
She stressed that cyber insurance was an area that required attention, noting that there would be regulations that would make it compulsory for financial institutions to have cyber insurance.
Adebisi added that Fintech companies must prioritise data protection and comply with regulatory requirements to build trust with customers.
On his part, Oti Ilentamhen, Investment Principal at Alitheia, noted that Fintech companies had democratised access to financial services, making it possible for individuals and businesses to access credit, payment solutions and investment opportunities.
He said that Fintech innovations had the potential to drive productivity, create jobs and support Nigeria’s economic growth.
Ilentamhen also emphasised the need for regulatory frameworks to balance innovation and compliance, citing the Central Bank of Nigeria’s (CBN) sandbox regulation as an example.
According to him, the CBN’s sandbox regulation had the potential to drive innovation, but stressed the need for periodic reviews to determine its effectiveness.
A regulatory sandbox is an environment where firms can test new innovations under the supervision of a regulator.
The aim is to facilitate innovation in a safe and responsible manner.
Also, Olubunmi Abayomi-Olukunle, a Partner with Balogun Harold Company, said there was need for Fintech companies to prioritise data protection, citing the Nigeria Data Protection Commission (NDPC) as a guideline.
He noted that the NDPC had established guidelines for the collection, processing, and storage of personal data, emphasising the importance of compliance.
On what FintechNGR was doing, its President, Dr Stanley Jacob said they were working to promote cross-industry collaboration and compliance.
He noted that their goal was to bring regulators, industry bodies, and stakeholders together to discuss regulatory issues.
Stanley noted that FinTechNGR was focusing on compliance, in addition to making the regulatory environment more friendly, to ensure a reputable Fintech ecosystem.
He emphasised that compliance was crucial for increasing shareholder value and preventing fines that could bring institutions down.
“FintechNGR is willing to champion the drive for consolidation in the Fintech subsector, but this also requires a collaborative effort from all stakeholders,” he said.
NAN
