Thursday, November26, 2020 / 10:12AM / Ecobank/Header Image Credit: Positive Real Estate

The ManagingDirector, Ecobank Nigeria, Patrick Akinwuntan has advocated a closercollaboration between banks, Telcos, Fintechs and industry regulators toenhance savings and lending in the financial landscape. This developmentaccording to him will generate activities in the economy and expand wealth creation.Akinwuntan who was speaking at the 'Fintech in Nigeria: State of Play' eventbased on the research and moderation of the Economist Intelligence Unit, statedthat the Fintech industry is currently more active in payments as againstwealth creation, which is the ultimate goal for financial inclusion. He notedthat the Central Bank of Nigeria (CBN) has been proactive in providing aregulatory environment for the collaboration of players with emphasis oncustomer protection which has improved customers' trust in using digitalchannels.  

Mr. Akinwuntan whocommended the role fintechs play in facilitating payment, said "there is needto deepen their presence in lending and savings. Therefore I maintained thatcollaboration between Fintech and banks is valuable. We are not at the stage ofcompetition yet; we are at a situation where although we have our profitabilityinterests, we will actually gain much more by collaborating". He added that "inthe area of savings and  lending, be it to the agriculture sector, thecreative sector or the young graduates setting out to be entrepreneurs directly,the ability to save even in little bits creates a profile that would be able toattract lending that you can translate into economic value.

Specifically, theEcobank Managing Director stated that the Fintech industry rose to thesituation especially in the payment space and increasingly in lending andsavings during the Covid 19 pandemic lockdown in the country. He noted that"between March and April, the number of transactions in the payment space forFintech grew in multiples of close to 800%. We saw significant participation ofthe Fintech industry in actually reaching more of the underserved in the marketby reducing cost of access and making these services available all the timeether by using traditional banks or in collaboration with government agencies."

Mr. Akinwuntanexplained that Ecobank had uninterrupted banking services for its customersthrough its digital platforms and agency banking during the lockdown,  "wehad invested significantly in our digital platforms; given the nature ofEcobank as a pan African institution, the only way we could reach everyhousehold was to leverage the digital platform. We saw a marked growth in thenumber of digital based transactions as our customers continued in their way oflife depending on these platforms. And most importantly is the use of oursocial media to drive advocacy with the stay safe campaign where we educatedthe masses on safety guidelines. We were ready for the situation giving thenature of our franchise. And with our agency banking push, people do not needto go beyond their neighborhood to do transaction."

Also speaking,Director, Payment System Management, CBN, Musa Jimoh said the apex bank'sregulation is driven by innovation. "We have come up with regulations that willenable all the participants to behave symbiotically. Our payment systemdirective will be driven by the innovation in the banks. We don't know whatwill happen in the future in terms of technological development, therefore wefollow innovations and prepare a ground for all the participants to worksymbiotically. A new innovation is studied before we provide the neededintervention in terms policy derivative that will help everybody toparticipate".

He observed thatCovid 19 lockdown provided opportunity for banks to sell digital products, testtheir back up and business continuity processes and explore the technologicalservices available and push for their financial services, noting that CBN isbacking up these areas with relevant regulations to ensure all the participantswith the payment and financial service space can actually conduct their serviceresponsibly.

On priorities inthe regulatory space especially those championing Fintech, Jimoh said the apexbank currently operates both sandbox and the open bank regulation. "the sandboxprovides a regulated environment for startups who don't have the financialstrength to take an authorization from CBN to go through the entire process oflicensing to test their innovation. We are working hard to show case an environmentwhere startups can come to the regulatory sandbox to test their innovation andservices without having the license yet," adding that "Open banking regulationis a principle that will allow third party to leverage on the existing bankaccounts with the banks to get information and provide services. More likedemocratizing financial services where a person chooses the service providerthat will provide services and the kind of services provided.  As aFintech, you will be able to connect to banks to provide value added services."

Fintech in Nigeria: State of Play: is an EconomistIntelligence Unit Research which examines key trends inthe fintech sector in Nigeria and assesses both industry drivers andimpediments to further growth. This report combinesextensive desk research and insights from in-depth interviews with industryexperts and executives at regulatory bodies and Fintech firms. Key findings of the report showedthat Nigerian Fintechs are moving from payments into lending, micro-investment,wealth management, peer-to-peer transfers and insurance.Secondly, Nigeria's regulatory environment balances innovation andconsumer protection but must continually evolve to respond to market dynamicsand lastly, Nigerian Fintech needsto address shortcomings in the broader ecosystem to develop and flourish.

Related News

1.      EcobankNigeria Holds Awareness Webinar on Diabetes

2.     Ecobankto Partner Ogun Government on Agriculture, Empowerment and Health

3.     EcobankHas Best Digital Touch Points in Nigeria - Digital Jurist Awards

4.     EcobankNamed "Best Retail Bank In Nigeria 2020" - Asian Banker Awards

5.     EcobankAdvocates More Collaboration between Fintech, Banks, and Telcos

6.     EcobankRestates Commitment to AfCFTA

7.     EcobankOrganises Diaspora Summit; Showcases Remittance Products for Nigerians Overseas

8.     Applauseas Ecobank Rewards Xpress Point Agents

9.     Ecobank Reaffirms Commitment to ExcellentService Delivery

10.  AlanSinfield, and Other Professionals to Speak at Ecobank Digital FinancialInclusion Summit

11.   Ecobankis the "Go to" Bank for Regional Trade in Africa - Akinwuntan

12.  EcobankDigital Series: Africa Must Think Continental, Focus on Wealth Creation -Ayeyemi

13.  EcobankNigeria Unveil Lead Speakers for Virtual Regional Trade Conference