According to Nigerian Exchange Limited (NGX), partnership between FinTech and the capital market would effectively develop a digital economy while also increasing financial inclusion and cashless payments.
This was said by NGX’s Chief Executive Officer, Jude Chiemeka, who was ably represented by NGX’s Divisional Head, Trading Business, Jude Chiemeka, at the 2021 Chartered Institute of Stockbrokers National Workshop recently held in Abuja.
Chiemeka, who spoke on the topic of “Roadmap to a Digital Nigeria: Harnessing Fintech, Cryptocurrencies, and Artificial Intelligence to Create Stronger Financial Markets,” said Fintechs have a big potential to revolutionize capital markets and efficiently construct a digital economy.
Fintechs, he continued, are possible partners to incumbent Capital Market Infrastructure Providers like NGX, rather than rivals.
Citing the Pulse of FinTech H2 2020 report, Chiemeka stated that global fintech investments totaled $105 billion in 2020, a considerable decrease from $165 billion in 2019, and that Nigerian Fintechs raised $439 million.
Fintechs are revolutionizing the financial services business, according to him, by focusing on specialized products and services, automating and commoditizing high-margin processes, strategic data use, and collaboration with incumbents.
The NGX, according to Chiemeka, provides access to capital, trade execution, post-trade services, data analytics and information services, operations, and technology. He also stated that the NGX is not left out of FinTech adoption, as it continues to adopt technology to improve market accessibility and transparency.
“Nigeria is categorized as an emerging FinTech economy compared to its more mature global peers such as the UK, Singapore, Australia, Sweden, and India because it is Africa’s largest economy and has a population of 200 million people, 40% of whom are financially excluded,” he stated.
Nigerian FinTech sales are expected to reach $543 million by 2022, according to EY, because to rising smartphone penetration, unbanked populations, and a targeted government push to improve financial inclusion and cashless payments.
FinTech activity in Nigeria began with payments and has since expanded to other areas, similar to how it has in other economies. FinTech activity is centered on consumer lending—and, increasingly, asset management.”
Chiemeka went on to say that NGX will keep building its solutions and innovation centre to look at projects that use distributed ledgers, cryptocurrencies, and artificial intelligence to increase financial inclusion and market access.
