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Global Financial Markets Need Another Bretton Woods – says Luno

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July 1st marked the 75th anniversary of the start of the Bretton Woods conference, held at Mount Washington Hotel in the United States (1st to 22nd July 1944). The conference created the financial system we use today, establishing the rules which still govern our economies.

Luno, a global cryptocurrency firm, recently carried out a ‘Future of Money’ survey in seven key markets to analyse the understanding and attitudes that individuals across the globe have developed towards the financial system.

The findings indicate that the respondents from emerging markets are seeking a change to the way global money exchange and banking operates today.

The Bretton Woods conference, also known as the United Nations Monetary and Financial Conference, created a new way of managing and exchanging value between individuals and organisations primarily based on the needs of developed countries and markets.

Marcus Swanepoel, CEO of Luno, says: “The survey results show that emerging markets are seeking a change to the financial system which was created 75 years ago.  The increase in population, changes to the distribution and inequality of wealth, at a time of tremendous steps forward in technology means that the current financial systems need to undergo another Bretton Woods moment.”

“Individuals in these markets cannot afford to, and should no longer need to, pay extortionate exchange rates, accept national devaluation or lose out when they simply transfer money between individuals or entities. Access to a more inclusive financial system will enable people everywhere to think of new and better ways of exchanging value and technology can play a key part here.”

The survey showed that respondents have three main areas of concern with the existing financial system: economic benefit, security and transparency.

It was also very clear that where they don’t have immediate access to wealth in the way that those in developed markets do, the respondents demonstrated a greater understanding of how it should work for them and are open to being more creative with how to maximise the value of what they do have. In more affluent societies knowledge, protection and understanding of money are less well developed.

For example, when asked how secure they feel about their current financial situation, South Africa (36%), Nigeria (35%) and the UK (24%) showed the highest percentage of individuals saying they did not feel very secure.

These are alarming numbers and with political uncertainties like Brexit, established markets are also under pressure.

Over 91% of respondents in South Africa said they pay for a personal bank account and 75% said they use mobile banking.

The results also indicate that respondents in South Africa are savvier with their money than those in European markets, as the second highest percentage of respondents that said they invest in products (i.e mutual funds and stocks) that came from those in South Africa. In comparison, a high percentage of individuals from European markets; France (70%), UK (61%) and Italy (59%) said they do not usually invest with a purpose of increasing their wealth.

When respondents were asked about monthly budgeting and expenditure, only 54% of people in the UK said they set a monthly budget for personal spending, a huge comparison to the 73% that said they did in South Africa, 80% in Malaysia and 65% in Nigeria.

This indicates that those in emerging markets are more cautious with their personal finances, with 66% of respondents in emerging saying the main reason for having funds is to secure their families well-being.

Even though the financial system was established 75 years ago by some of the world’s greatest minds, it is clear that many markets are struggling with their economy and we do not utilise the technology that is now available.

Across all markets, the percentage of individuals that felt their economy in the areas they live is currently performing very well was low. The strongest answers came from South Africa (27%) and Nigeria

(23%), where they felt their economy was performing fairly poorly. Individuals from rural areas showed a higher percentage of negativity towards their economy than those in urban areas, this is largely down to the lack of access to the financial system in those areas. (23% of respondents in Nigeria and 22% of respondents in South Africa said it was very difficult for them to send money overseas.)

“We have seen little change to the global monetary system over the last 75 years, particularly amongst developed economies where financial institutions have built a system around the transfer of currencies, assets and commodities which benefit a stable and strong economy.

“As technology advances, it is important that institutions globally find a way of adopting these advancements, enabling emerging markets to have the same access to money and transfer of assets.” – Says Marcus Swanepoel

South Africa (22%) and Nigeria (23%) showed the highest percentage of positive attitude towards a single global currency making the current financial system better, whereas only 7% of respondents in the UK agreed.

The most common answer when asked what the advantages to a single global currency would be, the majority across all markets said better for the global economy; UK (20%), France (21%), Indonesia (39%), Italy (25%), Malaysia (25%), Nigeria (39%) and South Africa (35%).

The most popular answer across all markets to what the disadvantage to a global currency would be was that countries would become less independent.

As some of the world’s largest tech giants announce they are launching cryptocurrency coins, we believe developing markets will be the lead adopters. Our research shows that in these markets people are more financially savvy because they have to be, which means that they need and understand the benefits the new coins can offer.” – Marcus Swanepoel concluded.

This survey presents an overview of a study conducted by Dalia Research for Luno between 17/05/2019 and 07/06/2019 about the future of money. The sample of over 7,000 individuals with internet access was drawn in France, Indonesia, Italy, Malaysia, Nigeria, South Africa and the United Kingdom .

Calculated for a sample of this size and considering the design-effect, the average margin of error would be +/-3.1% at a confidence level of 95%.


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E-Financial

Access Bank Unveils DiamondXtra Season 16, Dangles N200m, 3 SUVs

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The sixteenth season of DiamondXtra, a savings and reward account where customers of Access Bank are rewarded with several prizes, have been unveiled in Lagos.

Access Bank Unveils DiamondXtra Season 16, Dangles N200m, 3 SUVs

 L – R : Doris Okpara, Product Manager, DiamondXtra; Ngozi Igboanugo, Regional sales Manager Festac 1&2 & mainland Access Bank; Bolarinwa Animashaun, Regional Sales Director Lagos 2 Access Bank ; Emeka Ezikeugo, Diamondxtra N200,000 Onsite winner; and Adaeze Ume, Head Consumer liabilities, Access Bank during the launch of Diamondxtra Season 16 held at Alaba International Market Lagos yesterday.

The Season 16th of the special interest yielding hybrid account which allows deposit of both cash and third-party cheques has been upgraded as customers will win prizes to the value of N200 million and three SUVs, amongs other mouthwatering prizes.

Speaking at the unveiling in Alaba International Market, Lagos, Mr Bolarinwa Animashaun, regional sales director, Lagos, said the new season will bring more goodies to the customers as the bank has taken their interest at heart.

“In the last fifteen years, we have been able to ensure customer loyalty, reward committed customers over time and show that we are a bank that is ready to empower people and partner with people.

“If I take it into specific figures, we have rewarded 26,696 customers and we’ve given a total sum of N6.5 billion over the period.

This Season16is interesting, because, we have seen a lot of opportunities to expand into digital opportunities and this time around, we will be rewarding 15,786 customers, and 10,000 of them will be digitally rewarded.

“This is almost half of what we have done over the last 15 years. So that is what is making it special. We have takenit into the possibilities of how technology can expand our business and reward customers”.

The draws for the new season are going to be the same like the previous ones as it will be held in different regions.

“So, we start from the monthly draws, quarterly draws and the annual draws. What makes it extremely interesting this year is that we will be rewarding with up to N200 million in prizes and we have added some very interesting gifts. We will be given out three SUVs as part of the N200 million price for this year”, Animashaun added.

At the unveiling, Access Bank conducted onsite draws where 48 customers who have DiamondXtra accounts and were present at the unveiling won cash prizes ranging from N20,000 to N200,000.

Breakdown shows 40 customers won N20,000 each, five customers won N50,000, two customers won N100,000, while one customer went home with N200,000.

Among winners of the N20,000 prize was Mr Victor Edobor, who said he opened the DiamondXtra accounts 24-hours before the draws.

One of the two winners of the N100,000 prize, Mrs. Maureen Nneka Oforka, said she was surprised to have won at the well-attended event as that was her first time winning any prize.

She said, “I have never won any prize in my life. This is my first. I came here reluctantly and thank God, I am here and I am a winner of N100,000 which has already been paid into my account.

The grand prize winner of N200,000, Mr. Emeka Ezikeugo, a trader in Alaba, said. “I will forever be grateful to Access Bank for the prize as I was not expecting it. I thank the bank for showing leadership among its peers”.

To be part of the winning train and qualify for the DiamondXtra season 16 which is open to both new and existing customers, new customers are required to open a DiamondXtra savings account with just N5,000 by dialling *901*5# or walking into one of our branches to open the account.

However, the more multiples of N5,000 both new and old customers save, the higher their chances of winning at the monthly, quarterly and annual draws.

DiamondXtra is an interest yielding hybrid account which allows deposit of both cash and third party cheques. Hybrid means a combination of both savings and current account features. The DiamondXtra reward scheme has given away over N6.5 billion in cash and household items to over 15,000 loyal customers over the last 15years.  Please click HERE to learn more.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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Lafarge Africa Launches Girls-in-Tech Programme to Empower Women Innovators

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Recognising the underrepresentation of women in the technology sector, Lafarge Africa Plc, has launched the Girls in Tech Program, a pioneering initiative aimed at empowering young women in technology.

Meticulously crafted to bridge the gender gap in tech and empower 10 young females between the ages of 18-25 years from Lafarge Africa Host communities in Cross River State, the program is poised to make a significant impact in the region.

The Girls in Tech Program seeks to harness the unique talents of these young women and introduce them to the dynamic world of technology. By providing them with essential skills and opportunities, the initiative aspires to equip them to become self-reliant as well as problem solvers in society.

In collaboration with Aptech and Arena Multimedia,globally recognized leaders in technology incubation and opportunity, as well as The Bridge Leadership Foundation, the boot camp promises to be a transformative experience for the participating girls, who are eager to make their mark in the tech industry.

Speaking during the onboarding to flag-off in Calabar recently, the Plant Manager, Lafarge Africa Plc, Sotirios Valsamakis, who was represented by the Human Resources Business Partner, Lafarge Africa Plc; Barong Ita, revealed that the program was in line with the company’s commitment to diversity and inclusion.

She also added that the initiative is designed to ignite a spark of inspiration, hope, and possibilities in the heart of the selected girls across the host communities.

“As an organization, people are an integral part of our sustainability drive, and we are invested in building lasting progress by empowering members of our host communities. We also recognize the need for greater and greener diversity and inclusivity within the tech sector.”

Today’s event is not just about launching a program. It is about igniting a spark of inspiration, hope, and possibilities in the hearts of these young women. It is about challenging stereotypes.”

Also speaking at the event, the Cross Rivers State Commissioner for Science, Innovation & Technology, Justin Beshel represented by Edwin Adie, Technical Senior Advisor, Cross Rivers State Ministry of Science & Technology commended Lafarge Africa for the initiative adding that it is in line with the State government’s plan towards science, technology and innovation development.


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Hydrogen, CCHub Partner to Encourage Fintech Startup Success

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As the country faces economic challenges, the need for adaptive strategies in the fintech industry becomes paramount. In line with this, leading Fintech startup, Hydrogen Payment Services Limited (‘Hydrogen’), has teamed up with Co-creation Hub (‘CcHub’) to host an insightful event themed, ‘Adapting Fintech Business Models to Economic Climes’.

The event, set to take place on Thursday, April 18, 2024, from 12:00 WAT at the CcHub office in Sabo, Lagos, will delve deep into the intricacies of Nigeria’s economic challenges and how these influence the fintech ecosystem.

Participants will gain actionable insights on how to adapt fintech business models to volatile economic conditions by prioritising flexibility, agility, and customer-centricity.

This collaboration underscores the shared commitment of both entities to empower aspiring founders venturing into the Fintech space amidst economic uncertainties.

By leveraging their respective expertise and resources, Hydrogen and CcHub aim to equip emerging entrepreneurs with the knowledge, tools, and support needed to thrive in today’s dynamic economic conditions.

Emeka Awagu, Chief Technology Officer at Hydrogen, commented on the strategic partnership with CcHUB: “Our alliance with CcHUB amplifies our shared commitment to pioneering transformative solutions in Nigeria’s fintech sector.

“By leveraging Hydrogen’s technological expertise alongside CcHUB’s innovative approach, we are primed to set a new standard for fintech excellence and drive impactful change across the industry.”

The event will feature a distinguished panel of industry experts and thought leaders, including, Ina Alogwu, Group Director, Digital Transformation, ARM HoldCo; Emeka Awagu, Chief Technology Officer, Hydrogen, and Miracle Ezechi, Digital Marketing Manager, Hydrogen.

The panel discussion will be moderated to encourage an engaging and insightful conversation on the strategies and innovations required to thrive in Nigeria’s Fintech landscape amidst economic challenges.


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