Nigeria doesn’t want to be left behind in the Fintech world, recent meetings, partnership and formation of Capital Market Committee (CMC) among stakeholders attest to that.
CMC is borne out of the partnership between Securities and Exchange Commission (SEC) and the Financial Technology (fintech) Association of Nigeria.
In its second series, the CMC August 9, 2018 resolved to constitute another committee to draw a Fintech Adoption roadmap for the Nigeria’s Capital Market.
The latest meeting was held at the Federal Palace Hotel, Lagos, Nigeria, proshare said.
Acting Director-General of SEC, Ms. Mary Uduk, was quoted as saying that the Capital Market would have to take advantage of the Fintech offerings to move the Capital Market forward.
“The Capital Market needs to create an enabling environment that is attractive enough for Fintechs to innovate as the Market should engage actively with the new trend in technology and provide the adequate regulatory framework for proper adoption of suitable technology,” she said.
As usual, Fintech Association of Nigeria through its Executive Secretary, Seun Folorunso, listed some of the benefits of Fintech innovation to businesses:
- reduction in the cost of doing business,
- increased efficiency,
- customer trust and
- enhanced regulatory compliance.
Benefits of fintech to Capital Market
Mr. Seun further highlights some of the advantages of fintech to the capital market thus:
- Fintech helps the Capital Market in improving ways of accessing capital,
- trade execution,
- post-trade services,
- analytics and information services,
- operations and technology leveraging on core market infrastructure,
- post-trade digitization,
- AI & analytics,
- investment technology and
- alternative funding platform most of which are built on AI & Robotics,
- Machine Learning,
- blockchain technology,
- regulatory technology among others
The above benefits may however be tasking to achieve without collaboration, fintech executive Secretary submitted.
“The major emerging innovation trends within the financial services are increasingly global, rather than domestic in nature, therefore, financial services regulator must re-consider existing ways of working and collaborating, in order to balance potential benefits of innovation (for consumers and the financial sector as a whole) with traditional policy objectives, namely financial stability, integrity, financial inclusion, competition and consumer well-being and protection,” he said.
Stakeholder in the capital market that attended the Capital Market Committee include heavyweights from Securities & Exchange Commission , FMDQ OTC Securities Exchange, Central Securities Clearing System CSCS, Nigeria Commodity Exchange (NCX), Central Bank of Nigeria CBN, Federal Inland Revenue Service FIRSa among others.
This story first appeared on Proshareng