• Latest
  • Trending
  • All
  • LATEST NEWS
  • SPONSORED POSTS
  • BANKING
  • Cryptocurrency
  • Job Past Questions
  • PRICE WATCH
  • VIEW POINT
  • ECONOMY
  • Careers
  • Press Release
  • Breaking News
  • education news
  • Personal Finance
  • Networth
Photo News FinTech

Disruption of Nigeria’s Financial Service sector by FinTechs is underway

December 19, 2018
A Comprehensive Guide to the European Union Blue Card

Unlocking Opportunities: A Comprehensive Guide to the European Union Blue Card

August 31, 2024
Naira Redesign Policy Causes Banks' Deposits with CBN to Plummet by 95.82%

Currency in Circulation hits all-time-high Fueling Inflationary Pressures

August 29, 2024
Ecobank Nigeria Launches Oja Oge Pop up Marketplace to Empower SMEs

Ecobank Nigeria Launches Oja Oge Pop-up Marketplace to Empower SMEs

August 28, 2024
inflation Push Over 31 Million Nigerians into Acute Food Shortage

Insecurity and Economic Woes Push Millions of Nigerians into Acute Food Crisis

August 28, 2024
NAFDAC Cracks Down on Use of Unapproved Saccharine in Bread Production

NAFDAC Cracks Down on Use of Unapproved Saccharine in Bread Production

August 27, 2024
Food Prices in Nigeria Soar in July 2024

Food Prices in Nigeria Soar in July 2024: Beans, Eggs, and Yam Lead the Surge

August 27, 2024
Fed Rate Cuts Could Offer Respite for Nigeria’s Naira and Economy

Fed Rate Cuts Could Offer Respite for Nigeria’s Naira and Economy

August 27, 2024
Nigeria's Manufacturing Sector Struggles in Q2 2024

Nigeria’s Manufacturing Sector Struggles in Q2 2024: Growth Slows Amid Economic Challenges

August 27, 2024
Nigeria's Agricultural Sector Shows Modest Growth in Q2 2024

Nigeria’s Agricultural Sector Shows Modest Growth in Q2 2024: Crop Production Remains Key Driver

August 27, 2024
Nigeria's Economy Grows by 3.19% in Q2 2024

Nigeria’s Economy Grows by 3.19% in Q2 2024: Services and Industry Lead the Charge

August 27, 2024
States Share $71 Billion in Seven Years, But Poverty Persists

States Share $71 Billion in Seven Years, But Poverty Persists: What’s Going Wrong in Nigeria?

August 26, 2024
Interest Rate Hikes, Inflation Squeeze Profit Margins for Nigerian Paint Manufacturers

Interest Rate Hikes, Inflation Squeeze Profit Margins for Nigerian Paint Manufacturers

August 26, 2024
  • About
  • Privacy Policy
  • Terms of Use
  • Feedback
  • Advertise
Sunday, July 20, 2025
  • Login
Financial Watch
  • HOME
  • Banking
  • ECONOMY
  • VIEW POINT
  • PRICE WATCH
  • CRYPTO WATCH
No Result
View All Result
  • HOME
  • Banking
  • ECONOMY
  • VIEW POINT
  • PRICE WATCH
  • CRYPTO WATCH
No Result
View All Result
Financial Watch
No Result
View All Result
Home BANKING

Disruption of Nigeria’s Financial Service sector by FinTechs is underway

by Haruna Magaji
December 19, 2018
in BANKING
18
Photo News FinTech

Photo News FinTech

492
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

– Incumbent players need new strategies for the future – PwC Survey

Lagos, February 16 – Nigerian Retail banking and Payments sectors will be the most disrupted by a group of new companies building financial technology (FinTech) solutions. This is according to PwC’s Nigeria FinTech Survey 2017 report released in Lagos today.

The report is the result of insights gathered by PwC through the survey of over 50 Chief Executive Officers (CEOs), and Industry leaders across various segments of Nigeria’s Financial Services industry with additional insights and proprietary data obtained from DeNovo, PwC’s Strategy& platform focused on FinTech innovation.

FinTechs are redrawing the competitive Financial Services landscape and blurring the lines that define players in the sector. Their offerings range from competing financial services such as alternative lending, to additive solutions atop existing banking services, to enabling technologies for the banks themselves. Capitalizing on the latest mobile, cloud and digital technologies, Nigeria is increasingly becoming home to many FinTech firms who are trying to shake up and be accretive to the banking value chain.

Findings from the survey by PwC also reveal that Nigerian Financial Services players see changing customer needs as the top impact FinTechs have on their business, with up to 60% of respondents indicating that up to 40% of financial services business will be at risk of standalone FinTechs by 2020.

Commenting on the survey report, Dr. Andrew S. Nevin Ph.D., Advisory Partner and Chief Economist, PwC Nigeria noted:

“FinTechs are empowering customers by providing services that are delivered via technology applications on customer’s mobile devices. This allows consumers conveniently initiate and complete transactions, connect to third party entities and access information without restrictions.

All over the world, the increasing momentum of FinTechs and their success is challenging financial services players to devise a spectrum of strategic responses. However, not all FinTechs pose the same threats or opportunities. In some cases, FinTechs will be viewed as enablers to traditional innovation and continuous improvement. In others, it presents a series of disruptions and threats as they continue to make inroads into banks’ traditional territory by offering a competitive service or product.

The objective of this survey was to assess the rise of FinTech in Nigeria’s financial services industry, their potential impact on market players and the opportunities that may also exist following their adoption. From the insights we gathered, we are able to make recommendations on the way forward for players in this industry.”

Adedoyin Amosun, Associate Director and Co-FS Advisory lead at PwC Nigeria while presenting the key findings of the survey stated:

“From our survey, Retail banking and Funds transfer have the highest likelihood of disruption at 92% and 85% respectively. Underwriters were of the view that Insurance brokerage, Auto and Life insurance stand an equally high likelihood of disruption at 77%. While the threats of disruption is quite appreciated, our respondents also noted the opportunities FinTech adoption will bring especially as seen in the unlocking of opportunities for more revenue sources and reduce operational cost. A sizeable number also believe that Fintech adoption will improve customer retention and product differentiation.

It is interesting to note that although more than half of respondents recognise the importance of blockchain, they are yet to articulate a business response to this trend. Bank and Funds transfer & payments players are the most familiar with the blockchain trend perhaps this is linked to the sectors in which we have the most use cases to date.

Majority of respondents from traditional financial industry players believe that part of their business is at risk of being lost to standalone FinTechs, up to 92% in the case of Banks. Also Banks ranked loss of market share at the top FinTech related threat, closely followed by increased pressure on margins. One of the ways in which FinTechs are able to do this is by significantly shrinking operating costs. Other FS incumbents ranked information security and privacy concerns as the key FinTech threat to their business.”

Commenting on the way forward, Dr. Andrew S. Nevin comments:

“Overall, the results of the survey reveal that Nigeria’s Financial Services Industry leaders acknowledge the emergence of FinTech and recognize its impact on the industry. We see this impact manifesting in the development of new business models which will create challenges for both regulators and market players.

This will thus require incumbents to implement a customer-centric model focused on offering products and services that truly addresses customer’s needs and supports the completion of transactions through multiple accessible and connected channels. In addition, incumbents have to proactively approach the FinTech challenge with a clearly articulated strategy rather than the current approach of adopting reactionary measures. Incumbents also need to identify the threats and opportunities that are most relevant to their business and explore ways they can build, acquire or partner with FinTechs for the capabilities they lack.

By focusing on incorporating new technologies, incumbents can prepare themselves to play a dominant role in the new financial services landscape and maintain strong positions even as innovation alters the marketplace”

 


CHECK OUT THESE INTERESTING STORIES:

  • NIPOST to improve services
  • FirstBank gets global brands awards
  • EFCC fights crime, recovers $9.75m, N1.25bn in 2 weeks
  • Skye Bank promotes 300 workers, sacks 55
  • What Andrew Yakubu’s N3.04billion loot can do for Nigeria [INFOGRAPH]
  • Leading Japanese Banks Invest Into Bitcoin Exchange, Aim at Global Remittances Market
  • Uzochukwu: How Elumelu inspired my career
  • Customers Slam DSTV over Alleged Exploitation
  • Investor Negligence Blamed for N10bn Capital Market Scam
  • Five techy ways to save time when shopping
  • Citibank Group Honours Access Bank With STP Excellence Award
  • NSE sustains growth on year end activities
  • Powerful Connections That Drive Small Business Sales
  • World Bank says Agriculture is biggest employer of labour in Nigeria
  • Global CEO Confidence Rises Despite New Risks, Uncertainty
  • Skye Bank Executive Directors Resign, Replacements Named
  • NECA to CBN: obey N50 stamp duty ruling
  • Diamond Bank, Jumia Food set to delight customers
  • Top Services to float N20bn REIT, names First Ally as fund manager
  • Bank Job: Entry-Level Teller At Integrated Corporate Services Limited (ICSL)

 

Share197Tweet123
Previous Post

Bolaji Lawal appointed GTBank Executive Director

Next Post

Fidelity Bank Trains Children on Social Etiquette

Haruna Magaji

Haruna Magaji

Haruna Magaji is a journalist, foreign policy expert and closet musician. He is a graduate of ABU Zaria and a member of the Nigerian union of journalists. JSA, as he is fondly called, resides in Suleja, Abuja. email him at - harunamagaji@financialwatchngr.com

Next Post
Fidelity Bank Profit After Tax In 2017 rises by 94%

Fidelity Bank Trains Children on Social Etiquette

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
Stanbic IBTC launches Africa-China Agent Value Proposition

List of Stanbic IBTC bank Routing Number, sort codes and branches in Nigeria

May 2, 2023
Banks Employ More Contract Staff as full staff continue to dwindle

Nigerian bank employee grades and levels

June 14, 2021
N-power Portal Login npvn.npower.gov.ng/login 2020/2021 – Update Your Account

N-power Portal Login npvn.npower.gov.ng/login 2020/2021 – Update Your Account

November 17, 2020
Zenith Bank2

List of Zenith bank Routing Number, sort codes and branches in Nigeria

May 2, 2023
Union Bank2

List of Union bank Routing Number, sort codes and branches in Nigeria

May 2, 2023
How buy 2019 JAMB 2019 UTME form/ registration PIN online

UTME result: How to Check JAMB Result 2022 – Jamb Result Checker

1333
JAMB Result checker 2020 out | www jamb org ng result checker

Utme 2021: Check JAMB Results Using JAMB Registration Number

1146
List of JAMB Approved CBT Centres In Abia State 2020/2021 | Abia State Jamb Cbt Centres

Jamb Portal 2021: How to check Jamb Results – jamb.org.ng/efacility

523
P Yes registration

www.p-yes.gov.ng – Register For P-YES Progeamme Portal – Apply Now

436
Breaking: JAMB releases more 15,490 UTME results

JAMB Results 2021 Online Checking Steps | www.jamb.org.ng Result

316
A Comprehensive Guide to the European Union Blue Card

Unlocking Opportunities: A Comprehensive Guide to the European Union Blue Card

August 31, 2024
Naira Redesign Policy Causes Banks' Deposits with CBN to Plummet by 95.82%

Currency in Circulation hits all-time-high Fueling Inflationary Pressures

August 29, 2024
Ecobank Nigeria Launches Oja Oge Pop up Marketplace to Empower SMEs

Ecobank Nigeria Launches Oja Oge Pop-up Marketplace to Empower SMEs

August 28, 2024
inflation Push Over 31 Million Nigerians into Acute Food Shortage

Insecurity and Economic Woes Push Millions of Nigerians into Acute Food Crisis

August 28, 2024
NAFDAC Cracks Down on Use of Unapproved Saccharine in Bread Production

NAFDAC Cracks Down on Use of Unapproved Saccharine in Bread Production

August 27, 2024
Financial Watch

Copyright © 2023 Financial Watch.

Navigate Site

  • About
  • Privacy Policy
  • Terms of Use
  • Feedback
  • Advertise

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • HOME
  • Banking
  • ECONOMY
  • VIEW POINT
  • PRICE WATCH
  • CRYPTO WATCH

Copyright © 2023 Financial Watch.