By Ashemiriogwa Emmanuel
The Nigerian Exchange (NGX) Limited has said it sees the advent of financial technology (fintech) in the country as a potential partner to capital market infrastructure providers in building a digital economy.
This was disclosed by the Chief Executive Officer of NGX, Mr Temi Popoola, during the 2021 Chartered Institute of Stockbrokers national workshop held recently in Abuja.
Represented by the Divisional Head, Trading Business at NGX, Mr Jude Chiemeka, he noted that fintech companies focus on specified products and services, automating and commoditizing high margin processes, and strategic use of data which brings about transformation in the financial services industry.
Referencing the performance of the FinTech report for the second half of last year, Mr Chiemeka further cited that Nigerian Fintechs raised about $439 million in 2020 and that the global investments by fintech stood at $105 billion despite a significant drop compared to $165 billion recorded in 2019.
“As Africa’s largest economy and with a population of 200 million—40 per cent of which is financially excluded, Nigeria is classified as a developing FinTech economy compared to its more mature global peers such as the United Kingdom (UK), Singapore, Australia, Sweden, and India.
“Ernst & Young Global Limited (EY) estimates that Nigerian FinTech revenues will reach $543 million by 2022, driven by increasing smartphone penetration, unbanked populations, and a focused regulatory drive to increase financial inclusion and cashless payments.
“In line with the evolution of FinTech in other markets, FinTech activity in Nigeria started in payments and moved into other areas. consumer lending—and, increasingly, asset management—are focal points for FinTech activity,” Mr Chiemeka said.
He, thereafter, said that the synchronisation of FinTech and the capital market will effectively create a digital economy as well as increase financial inclusion and cashless payments, reiterating that the regulatory company will continue to adopt technology to improve market accessibility and transparency.
To actualize this, he said that the NGX will continue to set up its solutions and innovations that create avenues to cryptocurrency and artificial intelligence with the aim of improving financial inclusion and a digital economy.
