PwC Nigeria has recommended that Nigerian banks and financial technology (FinTechs) companies in the country should work more closely together in order to triumph over the damages caused by the Coronavirus pandemic.
This recommendation was given at the end of a new report by the professional services firm, which was aptly titled Changing Competitive Landscape: Fintech and the Banking Sector in Nigeria.
Although the two were initially seen as competitors,“banks have been increasingly collaborating with FinTechs to improve customer experience and enable seamless access to financial services,” the report noted. Now, with the damages wrought by the COVID-19 pandemic, traditional banks and FinTech companies are expected to increase their partnership in order to ensure quicker recovery and increased performance in the Nigerian financial industry.
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Other recommendations by PwC on how traditional banks and FinTech companies can be encouraged to collaborate more effectively are all enumerated below:
- The already existing synergy between banks and FinTech companies should be strengthened in such a way that it benefits both parties.
- The government should create a unified regulatory system to regulate FinTechs.
- Investment in the Nigerian FinTech space can be encouraged by simply amplifying the listing process on the capital market.
- FinTechs and traditional banks should stay focused on strengthening their digital infrastructure.
- Both banks and FinTech companies should also make tough decisions regarding their operational efficiencies.
- They should come up with enhanced digital products and personalised services.
- Very importantly, FinTech companies and banks should ensure to tighten their internal governance frameworks and strategies against cybercrime.
- They should lobby for tax reforms, especially the FinTechs.
“In conclusion, corporate entities in the financial services space must begin to realign their business strategies to recognise the sweeping technological changes in the business environment. In addition, financial service players need to recognise the changes brought upon the sector as a result of the Coronavirus pandemic. The playing field should be leveled for both FinTech and banks to compete or collaborate efficiently,” the report concluded.