News
Technology Experts Warn, Traditional Banking to End 2025
Technology experts have predicted that by year 2025 to 2030, a market economy could readily emerge without banks, as we have traditionally known them.
Consequently, they urged banks in the region to embrace technology and redefine their operations models to meet the emerging demographic and social change or lose relevance, as more core banking services would be delivered outside the regulated banking industry.
The experts warned that the current shape and makeup of the banking industry in Africa and particularly in Nigeria is inevitably going to change.
The sheer scope and speed of evolution in customer behaviour, technology, changing market dynamics and aggressive non-bank competitors such as telcos and technology companies mean banking in the future cannot simply be a continuation of banking as it has been.
Scores of industry stakeholders including bankers, financial analysts, media, risks analysts and financial technologists who gathered in Lagos at the eNNovators Breakfast Series (EBS) 10, organised by financial technology magazine agreed that for banks to continue to be relevant, management of the banks should invest heavily in technology, rediscover and reassert their roles in society and connect with millennial generation aspirations.
Experts at the interactive knowledge-sharing EBS, which has as its theme 2025: the End of Banking as We Know IT agreed that Central Banks across Africa require a radical orientation. They informed that Central Banks need to change their mindset and approach, as currently banking regulators appear to be focused on tactical responses and their strategic objectives for the future of banks and banking are clouded by political expediency and the ‘too big to fail’ debate.
Emmanuel Agha, CEO of Innovectives, an e-payment company, who presented the lead paper, which is a summary of PricewaterHouseCoopers’ research on “The future shape of banking – time for reformation of banking institutions”, explained that banks are facing rapid and irreversible changes of which the current models are no longer sustainable into the future.
According to him, while the PwC paper did not looking at the end of banking as a grouping of services focused on meeting financial needs, it is imperative to look at the end of banking and banks as we currently know them.
He warned that a failure to adapt could also mean the end of some regulatory bodies and instruments.
Agha explained that the substitution of non-bank providers of banking services is a challenge, which does not reflect in banking regulatory frameworks, or yet – fully at least – in policy and regulatory change agendas.
The Innovectives CEO argued that, “the challenges and dilemmas posed by the parallel changes in technology, customers and revolution are not confined to the incumbent banks or even the non-bank pretenders. Banking policy and regulatory community would face its own challenges and struggle for relevance”.
Quoting from the research, Agha painted a future with three fundamental hypotheses. The first is a future in which core banking service delivered outside of the regulated banking industry. The second is a situation where banks still have advantages but – to be part of the future – they need to invest heavily, rediscover and reassert their core role in society, and secure the ongoing support of policymakers.
The third harped on regulators, regulation and the need to radically change orientation, realignment “from policing to protecting and with public policy shifting its focus – to some extent – from institutions to markets and services”.
Also speaking, Chinenye Mba-Uzoukwu, managing partner, Grand Central, who presented supporting paper noted that bankers today are challenged intellectually and managerially to respond to a socio-economic formation undergoing radical change.
According to him, “A banker is challenged to claim a role in the emerging dispensation or be shunted aside by the more professional group outside the sector. He faces the task of redefining his roles and relationship; his competition and alliances; his goals and mission. His key resources in this new dispensation are information technology”.
He stated that one might state unequivocally that the extent to which “a financial institution commits to, and implement a pervasive deployment of IT tools and strategies will be the primary indices for accessing growth and longevity in the new dispensation”.
He therefore identified several drivers of the new dispensation to include convergence, ubiquity, omniscient, elastic, infinite and speed.
Others are diversity, personalization, free, fragility and openness.
In his reaction, ‘Deremi Atanda, executive director, SystemSpecs Limited, argued that technology will continue to be a major disruptor across all industries, particularly in banking.
Atanda said technology itself now rides on social trends as against technology leading social trends as it was largely before now.
He also warned the regulator that technology innovation especially those that emerge based on social trends can hardly be legislated.
He said there would be a deeper interface and partnership between the banking industry and technology providers. According to him, more banks will exit being “IT Businesses” and leverage multi-layered and multi-partner technology services collaborations. Besides, he predicted that it would become increasingly difficult for banking brands to present themselves strictly as banks because technology firms are already presenting themselves as banks.
He disclosed that major technology innovations will be birthed in the banking environment, which will lead the redefinition of banking, and these will attract global attention and promotion of these local technologies to the global landscape.
“Disaggregation of the banking industry will continue to be accelerated with the emergence of smaller trust units that offer multiple services of which “transformed contemporary banking” will just be one of their services,” he submitted.
Also, Niyi Ajao, executive director, Technology and Operations, Nigerian Inter-Bank Settlement System (NIBSS), said managing a transformation programme of this scale would be a huge challenge for most of the banks in the region.
He however explained that banks do not need to do all of this in-house, since at least some of the innovation and technology work can be achieved through partnerships.
Collins Onuegbu, executive vice chairman, Signal Alliance, said banks have to invest heavily in customer service and operational innovation, at least at the pace and standards set by telcos and technology companies that are gearing up to provide banking services. “The banks must change their mindset. They must stop treating their customers just as numbers,” he warned.
Federal government has said that private employers who pay their workers less than the new minimum wage of N70,000 risk facing jail time.
This warning was announced by Alhaji Ismaila Abubakar, permanent secretary, federal ministry of labour and employment, at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria.
According to Abubakar, the minimum wage is now a law, and paying less than N70,000 is a punishable crime. Employers are expected to make it compulsory in any contract that their workers earn at least the minimum wage, after all deductions.
The Nigeria Labour Congress (NLC) has also weighed in on the issue, with Funmilayo Sessi, chairperson of the Lagos State Council, calling on private employers to pay the N70,000 minimum wage. She noted that the current economic realities make it difficult for workers to survive on lower wages.
It’s worth noting that there is some ambiguity surrounding whether the N70,000 minimum wage is net or gross, with Dr. Olufemi Ogunlowo, president, Employers Association for Private Employment Agencies of Nigeria, calling for clarification on this issue.
National Agency for Food and Drugs Administration and Control (NAFDAC) has alerted Nigeria to the sale of a fake soap labelled as “Dettol Health Fresh Soap” in the market.
According to the alert on NAFDAC’s website on Thursday, the manufacturer of Dettol Antiseptic products confirmed that the soap is fake as it does not have any product by the name “Dettol Health Fresh Soap.”
“The Marketing Authorisation Holder and manufacturer (Reckitt Benckiser Nigeria Limited) of Dettol Antiseptic products, received a consumer complaint regarding the above-mentioned product. The product was reported to have caused skin irritation to the complainant.
“The MAH has confirmed that the product is fake as they do not have any product by the name “Dettol Health Fresh Soap”. Dettol Antiseptic products are widely used in Nigeria for household disinfection and personal hygiene to prevent illnesses from germs (bacterial infection),” it said.
It added that details of the complaint product were not provided by the complainant except for the name of the product “Dettol Health Fresh Soap.”
The agency noted that the illegal marketing of NAFDAC-regulated products or fake products poses a risk to people’s health, and since they do not comply with the regulatory provisions, the products’ safety, quality, and efficacy are not guaranteed.
It said all NAFDAC zonal directors and state coordinators have been directed to carry out surveillance and mop up the fake product if found within the zones and states.
“Importers, distributors, retailers, healthcare professionals, caregivers, and consumers are advised to exercise caution and vigilance within the supply chain to avoid the importation, distribution, sale, and use of the fake product. All medical products must be obtained from authorised/licensed suppliers. The products’ authenticity and physical condition should be carefully checked.
“Healthcare professionals and consumers are advised to report any suspicion of the sale of substandard and falsified medicines or medical products to the nearest NAFDAC office, NAFDAC on 0800-162-3322 or via email: [email protected].
“Similarly, healthcare professionals and patients are also encouraged to report adverse events or side effects related to the use of medicinal products or devices to the nearest NAFDAC office, or through the use of the E-reporting platforms available on the NAFDAC website www.nafdac.gov.ng or via the Med- safety application available for download on android and IOS stores or via e-mail on [email protected].”
News
NiRA Announces First Edition of The Tech Convergence: A Gathering of Stakeholders in Nigeria’s Digital Economy
The Nigeria Internet Registration Association (NiRA), the official registry for the .ng country code Top-Level Domain (ccTLD), is proud to announce The Tech Convergence 1.0, a two-day conference and exhibition set to take place on the 28th and 29th of November 2024 at the Muson Centre, Onikan, Lagos.
The Tech Convergence 1.0, commemorating its inaugural edition this year, will become a conference and exhibition held each year. For this year, it will precede the 7th edition of the awards also being held in November.
Why Tech Convergence 1.0?
Over the years, Nigeria’s digital scene has seen an explosion of innovators, showcasing how rapidly our digital and internet space is evolving. However, numerous challenges still limit its potential for growth and global competitiveness.
The Nigerian Internet Registration Association (NiRA) recognizes that to ensure Nigeria’s digital future is secure, sustainable, and globally competitive, there is a need to address these issues collectively.
The Tech Convergence 1.0 was conceived by NiRA to serve as a collaborative platform where stakeholders can explore synergies, foster innovation, and collectively drive Nigeria’s digital landscape forward. This ground-breaking event will bring together key stakeholders, innovators, creators, and tech enthusiasts within Nigeria’s digital ecosystem.
The event, themed “Innovating Nigeria’s Digital Future Through Tech and Creativity,” will explore how technological advancements, particularly in the DNS industry and digital content, can accelerate Nigeria’s journey toward becoming a digital powerhouse. It will also create an enabling environment for innovators and creators to thrive.
Additionally, it provides an avenue for stakeholders to explore synergies that will drive the growth of Nigeria’s digital space and contribute to the growth of our internet and DNS industry by promoting the adoption of the .ng domain.
Speaking on the upcoming event, Mr. Adesola Akinsanya, President of NiRA, noted: “The Tech Convergence 1.0 is a pivotal moment for us to come together as a digital community and chart the course for Nigeria’s digital future.
“Our digital future depends on how well we adapt, innovate, and collaborate today. Through the .ng domain, we have a powerful tool that can drive not only business growth but also our nation’s global digital presence.”
The event will feature key activities such as exhibitions, plenary sessions, masterclasses, networking sessions, VR games, raffle draws, and a meet-and-greet with our partners. The event is free and open to the public to attend.
Registration for The Tech Convergence 1.0 is now open, and we invite businesses, innovators, digital creators, government agencies, corporate organizations, tech enthusiasts, and others to register and participate in shaping the future of Nigeria’s digital space.
The Tech Convergence 1.0 will also feature insightful panel sessions on both days, led by top industry leaders and experts. These sessions will explore crucial topics such as digital innovation, content creation, and the adoption of emerging technologies.
Exhibitors are encouraged to showcase their products and services, as The Tech Convergence 1.0 offers an ideal platform to present the latest innovative products and technologies in Nigeria’s digital space to a wide audience of tech enthusiasts and industry leaders.
Recognizing the importance of collaboration, NiRA is seeking sponsors and partners to help make this event a success. We invite you to visit our website to explore sponsorship options or learn how to partner with us.
By partnering with NiRA and other key ecosystem players, you will not only expand your network but also collaborate with influential figures in the Nigerian digital space and showcase your brand to the right audience.
For more information and details on The Tech Convergence 1.0, please visit the official website.
For enquires on sponsorship, partnership and how to be an exhibitor at The Tech Convergence 1.0, contact Ms. Abimbola Aderibigbe at [email protected].
Private Employers Paying Below N70,000 Risk Jail – FG
PMCRG Invokes FoI, Asks NCC to Disclose Findings on Telecoms Competition Landscape
NCC Plans 6G Spectrum Deployment to Expand Wi-Fi Access
FG to Train 5, 000 Data Protection Officers
NAFDAC Says Dettol Health Fresh Soap is Fake
NDIC Plans to Liquidate 87 Microfinance Banks, Others
Introducing TECNO POP9: The Smartphone That Redefines Affordability
ALX Nigeria Moves Over 12,000 Youths Closer to Jobs in Six Months
Molokwu Azikiwe Joins the Prestigious Ndi-Ichie of Onitsha
Glo Introduces Instalment Payment Scheme for Purchase of Smartphones
News3 days agoTinubu Did Not Ask Cardoso, CBN Governor to Resign – Presidency
E-Financial2 days agoCBN Reintroduces Controversial Cybersecurity Levy @ 0.005 Percent in New Guidelines
News2 days agoAirtel Nigeria CEO Advocates Digital Public Infrastructure for Enhanced Service Access
E-Business2 days agoFake or Cloned Websites are Tricking Shoppers into Making Expensive Mistakes
News20 hours agoPrivate Employers Paying Below N70,000 Risk Jail – FG
Telecom3 days agoGSMA MWC Kigali 2024 to explore role of connectivity in driving socio-economic growth across Africa
E-Business3 days agoIDC Predicts Artificial Intelligence to Contribute $19.9 Trillion to the Global Economy through 2030
Telecom3 days agoInstagram Unveils Teen Accounts with Built-in Parental Control & Privacy