The Association of Securities Dealing Houses of Nigeria (ASHON) has urged the Securities and Exchange Commission (SEC) to fully digitalise the Nigerian Capital Market (NCM).
ASHON Chairman, Sam Onukwue requested dealing member firms to examine their operational methods, produce new products, and utilize technology to upscale operations and talents.
He noted that the current investment climate necessitates a creative strategy to suit the objectives of capital market clients.
What ASHON is saying about market digitalisation
The severe operating environment, according to Onukwue, has tempered investment through the NCM, as evidenced by the impact of COVID-19 and its variants on corporate earnings, misalignment of monetary and fiscal policies, high production costs and low consumer purchasing power, currency devaluation, forex scarcity, and high inflationary pressure, among other factors.
To broaden the client base and assure company survival, he believes that every dealing member should strengthen its research and development and offer creative items, particularly to appeal to millennials and Generation Z.
While emphasizing the use of modern technology to improve ASHON members’ operational efficiency, he highlighted that the pandemic has institutionalized digital transformation for all businesses.
“Our members have realized the imperative of digital transformation on our operations. With the impacts of COVID-19 on our business environment, demutualization of the former Nigerian Stock Exchange (NSE) to Nigerian Exchange Group Plc (NGX) and tough operating environment, our operational models have to be reviewed. We must create more innovative financial products that attract millennials and Generation Z.
“They are digital natives that do almost everything on smartphones. Our business models must take this critical class of investors into consideration. We need to deepen our Research and Development base to be on top of the latest development in the global financial market. We appeal to our regulators to address the observed impediments to full digitalisation of our market such as the issue of identity management,” Onukwue said.
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SEC has stated that it is committed to making the capital market appealing to all Nigerians, particularly the youth.
