By Obinna ChimaÂ
Financial and technology analystsÂ have predicted thatÂ a single world currencyÂ wasimminent given the growing technology disruption in the financial services industry typified by the popularity of blockchain adoption and its offshoots, cryptocurrencies.
ManagingÂ Director/ChiefÂ Execut
Speaking on the topic, â€˜Technology Disruption in the Financial Services Sector: How Prepared is the Nigerian Market?â€™ both analystsÂ noted thatÂ technology disruption hadÂ become the new normal, and that financial services industry would be impacted much more with traditional institutions losing market share to fintech start-ups.
Â Okeremi said threat of losing control due to fear of deregulated banking serviceÂ was why central bank governorsÂ have beenÂ critical of cryptocurrency, adding that legislation would soon lose its grip on the payment system and be part of the drivers of disruption in financial services with positive consumer experience being the lever.
Â He cited how legislation hadÂ been trying to keep hold on the technology that would clear cheques instantly in the country â€“ either upcountry or local, and thatÂ theÂ Nigeria Interbank Settlement System (NIBSS) has in place a technology that would clear cheques instantly which has been delayed by legislation.
Okeremi,Â aÂ former head, Systems and Logistics, Ventura Savings and Loans Limited, said digital bankingÂ is the future of the banking industry, tracing the rise of fintechs to the realisation by technology companies that they were getting low value from selling their services to the banks and decided to provide such services themselves.
Â On his part,Â RobertsÂ pointed out that over 35 perÂ cent of financial services revenue willÂ be at risk by 2025, and with about 31 million banked Nigerians, the technology start-ups will bring more Nigerians to access financial services.
Â â€œIt is obvious that the traditional financial service providers are lagging behind in bringing the more than 150 million unbanked Nigerians into the financial system, which creates the opportunity for fintech to erode their market share,â€RobertsÂ added.
He noted that apart from technology, customer behaviour influenced by demographicsÂ is fast becoming a major disruptive driver.
Â Â â€œNigeriaâ€™s population is young and young people want service on the go without being physically present at the providersâ€™ offices and digital technology is providing the convergence for companies who can offer different services to meet their needs,â€ he said.