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Experts have urged players in the Nigerian financial industry to increase the drive towards embracing technology as a way of attracting and increasing participation of young Nigerians in the financial industry, particularly, in the capital market and insurance sector.
Speaking at the Supernews Nigeria Fintech Conference in Lagos at the weekend, they pointed out that Fintech is currently redefining business operations and making task faster and easier, thus, aiding superior customers service delivery.
On his part, the the commissioner for Insurance/CEO, the National Insurance Commission (NAICOM), Mr. Sunday Thomas, urged regulators, such as the Central Bank of Nigeria(CBN), Nigerian Communication Commission(NCC), National Pension Commission (PenCom), Securities and Exchange Commission(SEC), among others to create open and level playing field for a wide range of providers, while increasing collaboration between themselves as this create the right environment for technology to thrive.
Thomas, who was represented by the deputy director of the commission, Mr Ajibola Bankole, encouraged regulators to innovate around product, services and delivery channels, support projects to improve data and technical expertise, encourage collaboration and information exchange between various stakeholders, review primary laws and regulations and put in place necessary safeguards.
To him, “as a subset of the Financial Services Industry, Insurance industry has a responsibility to guarantee the sustainability of growth and development of the economy and we consider technology as a key driver for market development.”
He stated that the commission has invested heavily in automating its processes as well as facilitated the space for financial inclusion growth in the industry, in order to accelerate the Insur-Tech eco-system.
“We live in a dynamic age, where the application of technology does not only enhance businesses for profit maximization but also now serving as a disruptor to existing business models.
“Technology as a disruptor when considered in relation to; Cloud Computing, Mobile Computing, AI, Blockchain Tech, IoT, Data Analytics, Usage Based Insurance (PAYD, PHYD) using Telematics, is the new market platform; For instance, Telematic has been identified to be disrupting the Insurance Sector by basically altering how risks are evaluated and premiums defined,” he pointed out.
However, in addressing the financial inclusion gap in the insurance Industry, he said, NAICOM, introduced the Microinsurance Guidelines and licensed 8 microinsurers; released Takaful Guidelines and licensed 4 Takaful Companies; recently released the Bancassurance and the Web Aggregator Guidelines that has attracted many applicants and some licenses have already been issued.
Earlier, the director general, SEC, Mr. Lamido Yuguda, noted that fintech is a game changer in deepening the capital market and enhancing financial inclusion.
Yuguda who was represented by the director, Registration, Exchanges, market Infrastructure and Innovation of SEC, Mr. Abdulkadir Abbas, stated that, “traditional means can no longer work, the average age of investors in the capital market is 45-50 years and we are currently trying to attract the millennials to the market and this can be achieved with the aid of fintech.”
The SEC DG, while speaking on the theme of the conference, ‘Imperative of Fintech in Promoting Financial Inclusion in Nigeria,’ stated that, it is very important to the capital market as transformation in the sector is incomplete without fintech.
Abbas said: “we can see a kind of game changer and rapid transformation in the financial sector due to fintech. It is a building block for enhancing financial inclusion. We are exploring ways to leverage on fintech to bring on the young people to the market. The capital market sees fintech as an opportunity and that is one of the ways we intend to change the dynamics of the capital market.
Abbas stated that, it was in view of the importance of fintech that the capital market initiated the fintech roadmap which enabled the SEC to come up with innovations and rules to support the initiative.
According to him, “we need innovation to deepen and broaden the market and we had to come up with rules to support it like the rules on crowdfunding among others.
“We all saw the success achieved with the electronic offering by MTN, a lot of Nigerians were able to subscribe with their phones and other gadgets conveniently. We realised that one of the ways to unlock investment opportunities is through fintech and we are stepping up such strategies to deepen the market.”
In her remarks, publisher and chief executive of Supernews Nigeria, Mrs Ngozi Onyeakusi said, the conference centres on Fintech and Financial Inclusion which holds a great potential for the Nigerian economy and for the financial stability of the country.
She said, the emergence of Covid-19, no doubt, projected the need for adoption of fintech in daily activities and businesses but not without its attendant challenges.
Onyeakusi said, the choice of the theme was aimed at contributing its quota to the financial inclusion target of the federal government.
“This conference centres on fintech and financial inclusion which holds a great potential for the Nigerian economy and for the financial stability of the country. It is a learning opportunity designed to enhance awareness, deepen understanding of participants in the role of fintech in rendering banking, capital market, insurance and pension services cheaper, faster and conveniently” she added.
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