Policymakers at the Nation’s Capital Market and Finance sector have been urged to leverage on technology in the drive to expand access to financial services and as well deepen financial inclusion.
The charge was made by the Director General Securities and Exchange Commission (SEC) Lamido Yuguda at the just concluded 2021 annual workshop of the Capital Market Correspondents Association of Nigeria (CAMCAN) which held at the Orchid hotel Lagos over the weekend.
In his speech delivered by the Executive Commissioner, Operations, Mr Temidayo Obisan, the DG emphasized that technology would continue to play a critical role in expanding access to affordable financial services explaining that aside expanding access to affordable financial services, it also provides cost effective means of reaching the untapped market, especially in the rural areas.
Mrs Chinyere Joel-Nwokeoma, CAMCAN Chairman and Mr Mr Olaniyi Toluwalope, Managing Director/Chief Executive Officer, eTranzact International Plc.
According to him, there are over 191 million and 140 million active mobile subscribers and active data subscribers in Nigeria as at October 3, 2021.
Yuguda stressed the need for participants in the market to leverage on technology in the drive to close the knowledge gap in the market and as well bring the unbanked into the financial space.
He pointed out that closing this gap would help reduce the cost of providing financial transactions as it involves little or no infrastructure cost and offers the highest outreach.
“Leveraging technology to offer financial service has advantage over traditional means because it breaks down geographical constraints.
“It also simplifies the means of serving existing customers for example through the use of mobile banking agents to perform banking transactions.
“Financial institutions are increasingly using electronic channels to onboard clients and address customers queries and bring financial product offerings to the prospective users,” he said.
On measures adopted so far by the commission to boost financial inclusion in Nigeria, Yuguda said SEC is currently working with the Fund Managers Association of Nigeria ( FMAN) to accelerate financial inclusion to collective investment schemes.
He added said the commission is proposing a hackathon challenge to help develop a comprehensive suite of mobile internet-based services targeted at having an end-to-end processes of the entire capital market.
Also speaking at the event, the Deputy Director, HOD Securities and Investment Services of SEC, Mr Abdulkadir Abbas, said there was a need for an active collaboration of all market stakeholders to help drive the initiative.
According to him, adoption of technology can help open up the capital market and bridge the gap of the unbanked which has created room for the proliferation of unregistered outlets that have continued to swindle investors of their resources in the market.
He said: “Average age of participation in capital market is 53 years where as the power is in the youths. We need to bring these youths to play on the capital market.
“We need market infrastructure to drive this initiative and some tools to help onboard people in the rural areas. We have these requirements, it is the starting point,” Abbas said.
C.E.O eTransact International Niyi Toluwalope also highlighted opportunities in the Nigerian Capital Market stating the need to promote the culture of investing as it is still alien for many especially in the informal sector. According him, there is need to close the knowledge gap in the system. In his presentation, he highlighted the fact that most Nigerians who fall prey to ponzi schemes are those who are unaware of the opportunities in the capital market.
The eTransact boss disclosed that the betting industry and sports industry on a daily basis records hundreds of transactions which can serve as an opportunity for financial experts as over 80% of players in the market operate with as little as 50 Naira per game. This according to him in its numbers is a huge source of opportunity for financial inclusion which he refers to as ‘Finclusion’.
”If financial institutions can create digitized products that pull platforms such as ‘Baba Ijebu, and Pool into the digital format, and is now accessible by millions of transctions on ebasis, you can imagine what technology can do for the Capital Market.
