Report: Nigerian retail banking to be disrupted by FinTech

Report: Nigerian retail banking to be disrupted by FinTech

A recent report has shown that retail banking and fund transfers in Nigeria are expected to be the most affected by FinTech over the next five years.

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A recent report has shown that retail banking and fund transfers in Nigeria are expected to be the most affected by FinTech over the next five years.

The Nigeria FinTech Survey 2017 was conducted by PricewaterhouseCoopers (PwC) and found that there is a big probability of disruption within these two fields, respectively amounting to 92 percent and 85 percent, as cryptocoinnews.com reported.

“FinTechs are gradually eroding the transactional business of Banks from the Payment and Loans perspective. While the impact may be insignificant today, it is definitely an irritant that needs to be addressed quickly.”, said Deji Oguntonade, Head of e-Payment Solutions Group at Guaranty Trust Bank Plc as quoted in the report, page 45.

At the same time, Oguntonade added that FinTechs are more agile and open to try out new technologies and provide customers with endearing products and services in a much quicker manner.

“We intend to stay close to FinTechs, create a more open organization that will be able to relate better and collaborate with worthy FinTechs over time”, stated Oguntonade.

The challenges

While FinTech is promising, there are still potential risks and barriers to adoption. More specifically, cybersecurity, privacy concerns and restricted governance over decentralized networks are not fully addressed.

Speaking to the authors of Nigeria FinTech Survey 2017, Jumoke Ogundare, CEO and Director at Asset & Resource Management Company Limited, has explained:

“Forging collaborations or integrating with FinTechs will require regulatory (SEC) approval/buy-in. Also, as the Fintech`s grow and mature, it is likely that regulatory scrutiny will be enhanced. If we can combine the experience, knowledge and expertise of FinTechs with our own structure under a regulated framework, it is a win-win for the client.”

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