TECH I Dissecting Osinbajo's Avowal on FinTech

By Fred Doc Nwaozor



I pay great attention to leaders of honour whenever they speak in the public domain. I invariably do so, because I’m strongly of the notion that I could deduce something of societal importance from their words.

In the maiden edition of the African Investment Forum (AIF) as organized by the revered African Development Bank (AfDB), which held few weeks back in Johannesburg, South-Africa, in his speech, the Nigeria’s Vice President Prof. Yemi Osinbajo tendered an avowal that caught my attention.

He declared categorically that time had come for the banking sector in Nigeria, Africa in general, to invest in Financial Technology (FinTech) as he stressed the need for the banks to carry out urgent reform so as not to be caught off-guard by rising innovations in fintech space.

Prof. Osinbajo who noted in strong terms that the effect of new innovations in fintech was unavoidable, stated “They have to invest in some of the fintech companies, and they have to see this revolution as inevitable. I think what we are seeing today is the reform around that space. And many of the banks are looking up and understanding that this is going to happen, and it’s already happening”.

It’s noteworthy that the AIF is a meeting place for investors who are keenly interested in Africa. It, thus, showcases bankable projects, attract financing, as well as provide laudable platforms for investing across multiple countries.

The President of the AfDB, Dr. Akinwunmi Adesina had in his opening address, disclosed that the goal of the forum was to allow investments land smoothly on investment runways in Africa, adding the forum was a 100% transactional platform to develop projects, fast-track the closure deals and improve the business environment for investments to thrive on the continent.

Fintech is the new technology that aims to compete with the traditional financial methods in the delivery of financial services. It’s a modern industry that uses technologies to improve activities. It’s simply a buzzword within the banking sector. It’s the simple task of replacing paper-based processes with software and applications.

Those days, fintech – which is primarily the use of technology across all financial functions – was mainly used for back-office activities by leveraging software to help bank personnel handle accounts, execute transactions, and manage client databases, among others.

But nowadays, fintech has transformed how banks operate. It’s not anymore relegated to the gloomy corners of back offices. It has, therefore, taken centre stage by making itself indispensible to client-facing processes. Every needed digital transaction is currently possible.

The role of mobility in the fintech revolution cannot be overemphasized. The penetration of Smartphone provides clients with an easier method to interact with banks, hence gain real-time views into their bank accounts. However, as mobile apps grew in sophistication, so did client demand for intuitive banking services.

To assert the least, the emergence of digital services in the banking sector coupled with the invention of mobile devices has significantly transformed the very nature of banking globally. Clients no longer have to contend with long queues and wait all-day to deposit cash, conduct trades or even request cheque books.

Ironically, this commendable innovation generally referred to as fintech has intriguingly constituted tremendous stress and troubles among bank clients in this part of the world, perhaps owing to inability of the key players in the said sector to duly and tactically key into the inevitable revolution. This could be what prompted Prof. Osinbajo’s avowal at the AIF.

The drivers of the Nigeria’s banking sector must wake up to their responsibilities as regards fintech. They need to acknowledge the fact that the tool in question has at the moment obviously changed the game for the financial services industry by the introduction of chat bots for client service, machine learning and AI fraud detection, Omni-channel banking, biometrics for stronger security, and block-chain for digital transactions.

It’s worth noting that Omni-channel banking style alone has made establishment of more bank branches in several localities an obsolete practice. As banking shifts from being a branch-specific activity to one that permeates all digital channels, the importance of having multiple brick-and-mortar bank offices decreases.

Research shows that the adoption of Omni-channel banking is driving many banks to reduce the number and size of their branch offices. For instance, survey indicates that in Europe alone, nearly 9100 bank branches were shut down by the end of 2016 as a result of higher adoption of electronic payment system and online/mobile banking.

The amazing merit of this mechanism is that it reduces the cost of banking, thereby yielding more profit in the business. Hence, investors or prospective ones are encouraged to capitalize on this.

Sometime ago when I encountered problem with my Automated Teller Machine (ATM) card as regards online payment, I had to go to the nearest branch of the concerned bank to lay a complaint and equally fix the fault. You wouldn’t believe that I had to wait for many months before the plight was solved. Ordinarily, such an anomaly is something that ought to be addressed right in my bedroom without contacting any banking personnel.

It’s thus needless to reiterate that it has become imperative for the Nigeria’s banking sector to make strategic investments in innovative technologies towards upgrading their operations and delivering seamless services for higher client retention.

The government on its part, via the Central Bank of Nigeria (CBN), ought to introduce wholesome cum relevant policies and review them regularly with a view to ensuring that the various banks are invariably equal to the task. Think about it!

Comrade Nwaozor, National Coordinator of Right Thinkers Movement
writes via frednwaozor@gmail.com

#WisdomTablet (2) I What You Didn't Know About Women

By Fred Nwaozor

Every woman, even the married ones, looks forward to
being admired by the male folks. A woman, irrespective
of status, age, or affiliation, earnestly wants to receive a
warmth admiration from someone of opposite gender.
Such phenomenon, which you were yet to know, is
natural, and not manmade.

For a man who admires a woman and intends to tender a
proposal, do not be beclouded with Fear of the Unknown.
Intriguingly, that lady you think would embarrass you if
you asked her out for a date, or tendered that proposal you
have been nurturing, is on the contrary looking forward to
seeing a man that would come with such idea/interest.

So, be bold enough to walk up to any lady that pleases your
heart and soul. What matters most is, before you approach a
woman, endeavour to know what she's made of, to enable you
realize the kind of language to employ while you are with her.
You are required to use a language and attitude that could
impress her person if you truly want her to give your speech a
second thought. You must use a language she understands.

The truth is, every woman on earth would be glad to realize
that a certain man admires her, but luring her into your net
would depend on the tactics you deployed in the process.
Thus, do not hesitate to let a woman know that you admire
her, but ensure that you are well equipped before asking her
out for a date.

But while you do so, endeavour to be genuine and real because
fake life does not pay. #ThinkAboutIt

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APC, Oshiomhole And The Distressed Governors

By Fred Nwaozor

Even an outsider in the Nigeria’s political sphere wouldn’t claim ignorance of the melodrama being acted by the current National Chairman of the ruling All Progressives Congress (APC), Comrade Adams Oshiomhole and the governors of Imo, Ogun and Zamfara States in the persons of Rochas Okorocha, Ibikunle Amosun and Abdul-aziz Yari, respectively.

The scene that could best be described as intriguing isn’t unconnected with the primary elections conducted recently by the APC under the watch of the party’s National Working Committee (NWC), particularly as they concerned the governorship race in the aforementioned states.

It’s not anymore news that the governors in question were ab initio reportedly making frantic effort to foist their favourite candidates on the ruling party for the forthcoming guber polls in their respective states.

Their dreams apparently became futile few weeks back when Mr. Oshiomhole publicly informed the teeming Nigerians via a press briefing that he had refused to please a few members of the APC who felt they could maneuver the party’s activity, thereby displeasing the majority who ought to be the prime determinant of the party’s doings.

Oshiomhole’s unequivocal declaration triggered mixed feelings among the overall party faithful and the entire Nigerians, especially those who initially presumed the boss was the governors’ instrument. As some were busy commending the former Edo State governor, some others opined he had shortchanged their interests hence condemned the move in its entirety.

In his words during press briefing, Mr. Oshiomhole told the world that the NWC led by him had fairly chosen to dance to the tune of those they felt had the support of the party’s majority. He therefore notified that since the said aspirants emerged victoriously at the party primaries that took place in their various states, their names would be outrightly forwarded to the Independent National Electoral Commission (INEC) as the party’s substantive candidates for their respective states’ guber elections.

The wishes of the trio or distressed governors, which was tagged by the NWC as that of the minority, was finally silenced when the electoral umpire eventually published the comprehensive list of the candidates for the impending gubernatorial and House of Assembly elections in the 36 states across the federation.

Since the emergence of the latest development, the trio has ostensibly insisted on its struggle. On his part, Gov. Okorocha alongside his allies has frantically vowed to confront the outcome through any available legal means towards ensuring that his son-in-law, Mr. Uche Nwosu becomes the guber flag-bearer of the APC.

It would be recalled that in his speech, Mr. Oshiomhole had asserted that Okorocha was making effort to create a “political dynasty” in Imo whereby all political offices in the state come 2019 would be virtually occupied by his relatives or whosoever that’s ‘ordained’ by him.

Funnily enough, reacting to the insinuation, the governor concurred with the assertion, stating he was only ensuring that after his exit as the Imo number one citizen, the state would be managed by his likes or those who mean well for the Eastern Heartland; a claim that has reportedly resulted in uncontrollable laughter in different quarters within the state.

The issue at hand is that Oshiomhole has been accused by the trio of manipulation. It’s equally in the know of the public that the boss had been accused of collecting N50m bribe to alter the APC primaries held in various states. The allegation had since been refuted by the accused person and the Department of the State Service (DSS) has as well reportedly interrogated him in that regard.

As various concerned groups and individuals have called on the Independent Corrupt Practices and other related offences Commission (ICPC) to thoroughly investigate Ohiomhole, it would also be imperative for the exercise to be extended to the aggrieved bigwigs of the APC. It’s already rumoured in some quarters that a certain governor allegedly offered the boss a sum of $500,000 but “he rejected it”.

It’s noteworthy that millions of Imolites – both home and abroad – have already applauded the APC’s guber candidate for Imo, Sen. Hope Uzodinma for ensuring that Gov. Okorocha didn’t succeed in his dogged bid to build a ‘political dynasty’ in the ancient state.

It’s similarly worth noting that most of the accolades were allocated to the revered Imo Deputy Governor, Prince Eze Madumere whose unequalled cum unquenching determination and vigour led to the current joyous scene.

However, now that the APC as a family has thus far been inconsequentially overstressed by those who were meant to cater for her welfare, it’s pertinent for the leadership of the party to go back to the drawing board with a view to restrategize if they are really looking forward to embracing victory at the fast-approaching 2019 general elections.

Since the downpour is eventually over as anticipated, the best thing that could happen to the ruling party at the moment is to ensure that all major injuries incurred so far are reasonably healed prior to the awaited polls. To actualize this, some vital tools such as apologies, promises, hand of fellowship or what have you, which invariably beget sense of belonging, mustn’t be relegated to the background.

Hence, it isn’t all about constituting a reconciliation committee but doing the needful headlong. Think about it!

Comrade Nwaozor is the National Coordinator,
Right Thinkers Movement