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WHY NIGERIAN BANKS NEED TO MEET UP WITH ‘FINTECH’ REVOLUTION –

Vice-President Yemi Osinbajo has charged
Nigerian banks to be reformed for them to
meet up with the inevitability of the Fintech
revolution.
While speaking at the ongoing first ever Africa
Investment Forum in Johannesburg today,
Osinbajo maintained that there are no plans to
take the banks’ lunch, but the banks have to
reform to survive.
He said the “Fintech companies, as you know,
are challenging some of the old laws on
banking and all of that”.
“The major issue is that technology is clearly
going to disrupt the financial space, and is
doing so already, so banks have to reform,”
Osinbajo said.
“They have to invest in some of the Fintech
companies themselves, and they have to see
this revolution as inevitable.
“I think that 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”.
He, however, allayed the fears of the banks by
saying the government is, and will, work with
them, the regulators, and the Fintech
companies to ensure development in the
sector.
“I think the first thing is to allay the fears of
the bank that lunch isn’t being taken away.
Banks, of course, are jittery about some of
what is happening in the Fintech space,”
Osinbajo added.
“They need to be assured that this isn’t about
taking their lunch but that we cannot avoid
what is coming to us now.
“What we are saying is that payment system,
lending, all sort of financial systems, even
insurance are happening much faster.
“So we have to change regulation and we must
ensure that we give space to these tech
companies because what is happening is that
there is a quick convergence between
technology and financial products.
“So much faster than many of the banks are
able to cope with, so what we are trying to do
is work with the banking system, the Central
Bank of Nigeria for example, we are sitting
with the Fintech companies, banks, and the
telcos.
“The telcos are in this space now and many of
them are challenging some of what used to be
traditional banking businesses.”

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