It’s a brand new month and a brand new day to ‘Fin-tegrate’, as this was the fresh air of growth the KPMG Digital Summit ’17 blew upon us all. Sequel to the Digital Summit held last year by one of the big 4’s was this years ‘Leading
through Digital’ event and it was a huge success. The event kicked off with registration for all, followed by a brief introduction by Bisi Lamikanra (Partner & Head, Advisory Services) and Boye Ademola (Partner & Lead, Digital Transformation) KPMG Nigeria.
A Four-man panel session made up of Deji Oguntonade – (Divisional Head, FinTech & Innovation, GTBank Plc), Victor Okigbo – (Group Head, Financial Technology & Innovation, Access Bank Plc and Program Director, The Africa Fin-tech Foundry), Adedeji Olowe (Executive Director, Products & Services,SystemSpecs Limited) and Shola Akinlade – (Co-founder & CEO, Paystack) discussed the topic ‘How Open API is Driving Digital Innovation and Collaboration in Financial Services’ and gave their own different views and contribution to the whole relevance of the API’s, Fin-tech and Bank relationships. Shola Akinlade was of the opinion that the customers are the biggest winners of this relationship, as they stand to gain a lot from the new Bank-Fintech relationships, he said the next winners are the banks as they get a huge load off of work by sharing their heavy burdens with the Fin-Tech firms that help them provide services to their customers.
Adedeji Olowe thoroughly went on to contribute that the future standard for any bank in Nigeria will be for the bank to be in collaboration with a Fin-tech firm, he said “It’s just like having a smartphone that can basically carry out the functions desired by its owner: Take pictures, make calls, text, social network, allow banking apps and have unbeatable access to the internet.” Fin-techs will soon be a thing of necessity. Victor Okigbo replied to the question asked by the moderator Ladi Asuni –Associate Director, KPMG Nigeria, who had asked ‘if the bank saw Fin-techs as a major threat to their customer interface network?’ he admitted this was true and agreed that the bank is at a potential risk of disintermediation, but the banks can rather see a positive turn in either, becoming a utility factor or as a major advisory services entity to the public rather than being pushed off the face of customer interface network totally. Deji Oguntonade conclusively agreed to the collaboration of financial institutions and Fin-techs as a good decision that promises great returns to all ends, pointing to the relative fusion of Fin-techs and bank relationships in Nigeria and abroad.
Iyinoluwa Aboyeji (Co-Founder & Managing Director, Flutterwave) took to stage to talk on ‘Building Payments Infrastructure for the Digital Economy’ and capitalized on the fact that cash does not scale well in situations, ranging from emergencies to long distance liquidity, therefore, we need the right infrastructures to carry out this kind of transactions and that is why we now have instant money transfers and payment infrastructures that make life easier, they are the most desired meal on every Nigerians plate. He went on to advice the banks to not just interpret the data involved in their customers’ transactions as just zeros and ones but rather stories that can help them serve the people more. He ended his session by asking the big question… ‘Should financial institutions identify more with payments or with being an indispensable platform?’
Introducing and discussing ‘Why Digital Requires New Business Models’ was Head of Fin-tech, KPMG in Israel (Dorel Blitz) who defined the word ‘Digital: as now, It’s no longer a back-end means but rather a frontend means, it’s a crucial aspect of who we are and how we now do our various businesses’. Due to a lot of services banks now offer, customers are mostly confused, and as such, they need guidelines to make a decision that
could affect them for a lifetime, ranging from banking to insurance, we should ensure to give them contextual and practical advice, effortless service and a liberating experience’. Also touching on partnership and collaborations, giving tips on how to make partnerships work and produce efficient outcomes.
Highlighted below are five key attributes of effective partnerships:
2. Evaluating framework for Financial Technology.
3. Outside the box thinking
4. A global mindset
5. Experienced advisors
Finally closing with positive call-outs to banks to collaborate with Fin-techs and take over the future.
Another four-man panel, comprising of Dipo Fatokun (Director, Banking & Payments System Department, CBN) Adebisi Shonubi – (MD, Nigeria Inter-Bank Settlement System Plc) Bunmi Akinyemiju –
MD/CEO, Venture Garden Group) Iyinoluwa Aboyeji – (Co-Founder & Managing Director, Flutterwave) and
Ngozi Chidozie – (Partner, Management Consulting, KPMG in Nigeria) as the Moderator. Discussing ‘The Role of Government and Regulators in the Evolution of FinTech,’ each speaker had a lot to say, especially in the area of security and how the government is playing a part in protecting their citizen’s assets. Bunmi Akinyemiju was very positive about the central bank of Nigeria, whom he said the Fin-techs would run to in the beginning to avoid
problems and seek clarification on their Do’s and Don’ts. While Adebisi Shonubi, was of the opinion that Fintechs shouldn’t be running back and forth from the CBN, but rather strategize and lay out their plans before reaching out to the CBN. He also went on about data/information sharing, in his words “Data should be shared but I will say contribute to the data fist before you get it’. Dipo Fatokun made it known that CBN’s support for Fin-tech is unwavering and they believe in the future that the banks and Fin-techs are collaborating to build, so far;
they follow the rules and regulations set by the government. Aboyeji stuck to his thoughts on collaborating and building a better Nigeria.
KPMG Matchi ‘Innovation through Fintech Start-ups’ was introduced and discussed upon by David Milligan (Chief Executive Officer, Matchi) who said he sees a great future, in Financial institutions no longer being in competition
with themselves but relatively, them forming bonds and collaborating with Fin-techs to bring about better solutions to solving client problems. Then came on the stage, Abolore Salami (CEO& Founder, Riby Finance); he
discussed the topic ‘How Cooperatives Can Drive Financial Inclusion and Change Banking for Low-Income Earners’ He introduced Riby Finance cooperatives package. I.e. the Riby for Co-operatives which is a platform that allows Co-operatives, Associations and Groups manage all their activities and Financial Transactions including Co-operative member management, Contributions, Loan requests and more within one single platform.
We at Riby are excited about the future of collaboration between Government, Financial Institutions and Fin-Tech StartUps.