Banks, fintechs, and regulators adviced to collaborate on financial inclusion, FITC CEO.
Mrs Chizor Malize, the Chief Executive Officer of the Financial Institution Training Centre, has stated that commercial banks, fintechs, and financial regulators must work together to promote financial inclusion.
Banks and fintechs, she believes, must learn from their earlier missteps in advancing financial inclusion in the country.
‘Financial inclusion, digital payment, and the problems of banking the unbanked,’ she said during a keynote speech at the third edition of the Industry Summit/Awards in Lagos.
“The Central Bank of Nigeria has been at the vanguard of this campaign,” Malize remarked. However, synergy and coordination between deposit banks, fintech, and financial regulators are required to dramatically shrink those parts of the unbanked and underserved.
“Low cost of transactions and greater expansion in reach and a reduction in the use of cash for business dealings will happen when synergy is achieved.”
Another barrier to overcoming the financial inclusion gap, according to her, is collateral.
“Most low-income earners cannot afford collateral,” she said. As a result, people choose not to visit a deposit money bank. Instead, they prefer to borrow money from loan sharks who charge exorbitant interest rates.
“Over 200 fintech companies are now functioning in Nigeria, according to Proshare Nigeria. Between 2019 and 2021, this corresponds to around $560 million in investments.”
She stated that the emergence of fintech can be ascribed to the increased use of digital channels and agents to reach the underserved and unbanked in rural areas, as well as the increased usage of smartphone devices.
Goddie Ofose, the event’s convener and Editor-in-Chief of the Industry Newspapers, said in his welcome address, “We are no experts on this subject matter, which is why we have gathered the best of the best in the industry to do justice to this matter, and we sincerely hope that justice will be done in the end.”
“The missing piece of the puzzle would be discovered, and difficulties relating to the expanding unbanked population would be resolved.”
Meanwhile, during the event’s second leg, the awards night, a large list of individuals and business entities were recognized for their contributions to the advancement of Nigeria’s economic sector in several categories.
The governor of Akwa Ibom State, Udom Emmanuel, was named Best Governor of the Year 2021 (Infrastructure), while First Bank of Nigeria Limited was named Best Bank of Nigeria Limited (Advertiser of The Year).