NITRA: Okere canvasses for improved FinTech innovations
strong England, China plan own national digital currency strong
The Founder, CWG Plc and Entrepreneur in Residence, Columbia Business School, New York, Austin Okere, has canvassed that it is now imperative for Nigeria and other developing economies to innovate on technology that will even cater for needs of rural dwellers as “money is going digital” around the world with central banks from England to China publicly floating the notion of issuing their own national digital currencies.
He said conceptually, the idea of harnessing the upside of the digital revolution; mobile payments in particular, while preserving the existing legal and regulatory set up, practically, demonstrate the significant cost savings, a reduction of operational and fraud risks in the current payments systems, that blackchain, for instance, will bring in strengthening the ability to execute monetary policy.
Okere made these remarks while speaking on: “The Fintech Challenge and the New Face of Banking”, as chairman at the 3rd Quarterly Forum organized by the Nigeria Information Technology Reporters Association (NITRA) in Lagos, adding that “From a consumer’s perspective, the prospect of total digital money is still mind-boggling. It is more likely that societies would not go completely digital overnight. Instead, central banks could start issuing digital currency units alongside notes and coins as base money, and adjust the mix over time, according to uptake. Once critical usage levels are reached and network effects kick in, universal adoption could happen very quickly.
“For me, the biggest thing that has happened in ICT development here in Nigeria, properly in Africa, is the advent of broadband and smart phones.
“If not that we have broadband and smart phones it will be impossible for this business module to exist or to book flights and buy things online.”
According to founder of Computer Warehouse Group, money is going digital around the world; central banks from England to China have publicly floated the notion of issuing their own national digital currencies, stressing that they like the idea of harnessing the upside of the digital revolution; mobile payments in particular, while preserving the existing legal and regulatory set up.
He pointed out that the changes coming financial sector will be as large as the original invention of the internet, and this may not be overstated.
Rhetorically, he asked, who would have imagined a decade ago that e-commerce, championed by Amazon and Alibaba will be displacing high street retailers, or that ride hailing will be dominated by UBER, a technology platform.
He cited a report carried out in 2015 by Goldman Sachs which estimated that $4.7tn of financial services revenue is at risk of displacement from Fintech groups, adding that the key to this revolution lies in Cryptocurrencies such as bitcoin.
He underscored that it is their underlying technology that is proving to be of practical benefit to organizations, the famous blockchain, while the regulators are now helping Fintechs because they believe that Fintech firms are small enough for any problems to be manageable, and on the other hand, might produce useful innovation.
Tony Nwakaegho
