The financial technology (fintech) sector has been described as the “next big thing” by Access Bank’s Group Managing Director, Mr Herbert Wigwe, who spoke during a forum yesterday in Lagos.
The business executive, who was represented by Access Bank’s Director of Personal Banking at the 2018 National Fintech Conference and Africa Fintech Festival, also stated that fintech companies are destined to become the face of Nigeria’s financial sector.
He also assured that there is no need for traditional financial services providers to feel threatened by the emergence of fintech companies. This is because there contributions to the sector will only make it better for all.
“Fintechs have become the next big thing in Africa, and in a few years, could change the face of financial services as we know it.
“While banks and other financial service providers may feel threatened, the presence of fintech would most likely improve traditional financial service, rather than phase it out. This means the financial service sector has a chance to grow alongside Fintechs, through Co-creation, Collaboration and Co-opetition.” -Wigwe
Meanwhile, fintech companies have work to do
Speaking further, Mr Wigwe said there is no for financial technology companies “to transition from just being buzzwords to solving real world problems.”
He suggested that there is an urgent need for them to focus on proffering solution to real life problems such as poverty, financial exclusion, and the intra-Africa transfer and payment systems.
“Fintechs have a huge role to play in poverty eradication not only by giving the financially excluded access to affordable payments and credit, but also by facilitating new business models.”
Once again, he reiterated the need for stakeholders in the financial services sector to work together towards in order to make sure that the revolution that has been enabled by financial technology benefits everyone. He said Access Bank Plc has long realised this and “taken a strong stand on this subject.”
Access Bank Plc is one of Nigeria’s tier-one banks. The company recorded a 3% growth in revenue during the third quarter of 2018; gross earning stood at N375.2 billion compared to N365.1 billion. Similarly, profit after tax increased by 12% during the period, jumping from N56.4 billion to N62.9 billion.
The company was incorporated on February 8th, 1989 and listed on the Nigerian Stock Exchange in 1998. Its market capitalisation stands at N216.9 billion, and its share price is currently trading at N7.55.