As technology continues to dominate and permeate every segment of human endeavour, activityand field of knowledge, there is strong indication that Fintech, a new trending innovativetechnology, will to a very large extent redefine and determine the survival of global bankingservices delivery in Nigeria and other countries of the world. A Fintech (Financial Technology) expert and Executive Director, Systemspecs Limited, Mr.AdeRemi Atanda, gave the insight at the Centre for Financial Journalism (CFJ) and Associationof Corporate Affairs Managers of Banks (ACAMB) Business Forum held in Lagos, recently.
According to Wikipedia, Fintech is the new technology and innovation that aims to compete withtraditional financial methods in the delivery of financial services. It is a new industry that usestechnology to improve activities in finance using smartphones, investing services,cryptocurrency and other technologies to make financial services more accessible to the generalpublic.
Mr. Atanda who was the Guest Speaker at the CFJ-ACAMB Business Forum observed thatFintech has come to not only revolutionise the global economic setting, especially, the bankingand financial services system but also to ultimately change the way and manner that services aredelivered to the consumers through its innovative and disruptive characteristics and capabilities.According to him, the world is at the 4th economic revolution which is driven by the digital age.He stated that “We all know about the 4th economic revolution, it is a digital age. It is aknowledge edge. So if anybody is still competing based on natural resources you are a goner”.
He explained that in the digital age financial services would be delivered directly to theconsumers using disruptive and innovative technologies that would enable banks and otherfinancial services providers to provide value-adding services to meet their numerous customers’increasing needs.Atanda further explained that Fintech is about those technologies that enable financial services tobe taken right to the customers the way they want it. But many times financial services providersare not capable or do not assume it their responsibility to create the rail or the platform thatmakes it easy for them to deliver their own services and that is where the conflict is. “Manytimes they believe because am a financial services provider I own the entire ecosystem”.
He said before now you could advertise to your customers that you are going to get your creditwithin 24 hours “but if anyone says it today, you don’t exist”. He said what is trending now inthe financial services sector is instant payment made possible by technology.
“But guess what?We want to be the providers of financial services and at the same time we want to be thegatekeepers as if everything is dependent on us. And when we are not moving at the speed of thecustomer the customer begins to innovate. And it will surprise you to know that those who werethe foremost point of financial technology are the people who need such services themselves thatthe financial services providers are not providing”.
Atanda he stated that in order for banks to remain competitive and profitable there is the need forthem to partner with Fintech companies with a view to increasing the efficiency of incumbentbusinesses adding that incumbents could simplify and rationalize their core processes, servicesand products, and consequently reduce inefficiencies in their operations.