Financial and technology analysts have said a single world currency is imminent given the growing technology disruption in the financial services industry typified by the popularity of blockchain adoption and its offshoots, cryptocurrencies.
The Managing Director and Chief Executive Officer of Precise Financial Systems, Yele Okeremi, and the Lead, Digital and Robotics Practice, Ernst &Young Nigeria, Akinsope Roberts, gave the insight on Thursday in Lagos at the maiden Business AM/GTI Finance and Investment Dialogue.
Speaking on the topic, “Technology Disruption in the Financial Services Sector: How Prepared is the Nigerian Market?”, both analysts said technology disruption has become the new normal, and that financial services industry would be impacted much more with traditional institutions losing market share to financial technology start-ups.
Okeremi said the threat of losing control due to fear of deregulated Banking service was why Central Bank Governors were critical of cryptocurrencies, adding that legislation would soon lose its grip on the payment system and be part of the drivers of disruption in financial services with positive consumer experience being the lever. He cited how legislation had kept and trying to keep hold on the technology that would clear cheques instantly in the country.
Okeremi said digital banking is the future of the Banking industry, tracing the rise of FinTechs to the realisation by technology companies that they were getting low value from selling their services to the Banks and decided to provide such services themselves. Roberts said over 35 per cent of financial services revenue would be at risk by 2025, and that with about 31 million banked Nigerians, there was room for technology start-ups to bring more Nigerians to access financial services
According to him, it is obvious that the traditional financial service providers are lagging behind in bringing the more than 150 million unbanked Nigerians into the financial system, which creates the opportunity for FinTechs to erode their market share. He noted that apart from technology, customer behaviour influenced by demographics was fast becoming a major disruptive driver.
Roberts said, “Nigeria’s population is young and young people want service on-the-go without being physically present at the providers’ offices and digital technology is providing the convergence for companies who can offer different services to meet their needs.