Embracing Disruptive Technology in Nigeria’s Financial System - Sundiata Tech

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Thursday, July 27, 2017

Embracing Disruptive Technology in Nigeria’s Financial System

The financial services sector handles sensitive information about individuals and enterprises. With the emergence of FinTech, more data is now available in digital formats, which makes it easier to analyse and generate insights but also makes the data more susceptible to security breaches. According to PwC’s Global FinTech Survey 2016, almost 56% of the respondents identified information security and privacy as threats to the rise of FinTech.


But, as Uzoma Dozie, CEO, Diamond Bank Plc said in an interview “The beauty of digital is that you know how much attempt was made. But, tell me how much cash was lost within any given period? Nobody has put a figure to cash, so you’re dealing with the unknown.


“With technology there is certainty because you know what the potential threats are and you can safeguard against it. If a small business moves from cash payment to digital payment, it will reduce its operational risks because cash brings with it, human, storage, transportation, and other logistical risks. In digital, the points of failure are limited, but with cash there are multiple points of failure.”


PWC’s report on Financial Services Technology 2020 and Beyond: Embracing disruption identified ten competitive technology driven influencers for 2020. It noted that it is clear technology is affecting financial services in a multitude of ways and ten key themes that IT executives will need to address as they begin their strategic planning for 2020 and beyond include:


• FinTech will drive the new business model


• The sharing economy will be embedded in every part of the financial system


• Blockchain will shake things up


• Digital becomes mainstream


  Customer intelligence’ will be the most important predictor of revenue growth and profitability


  Advances in robotics and AI will start a wave of ‘re-shoring’ and localisation


• The public cloud will become the dominant infrastructure model


• Cyber-security will be one of the top risks facing financial institutions


• Asia will emerge as a key centre of technology-driven innovation


• Regulators will turn to technology as well


Each of these themes is likely to affect financial services companies and their leadership teams in far-reaching ways. While each theme may have a disproportionately strong effect on a given geography, customer set or industry segment, they all present opportunities for the thinking (proactive) executive to get ahead. When you know a robotics movement is coming, for example, you have a choice: to lead the charge, to make sure your organisation has the right listening capabilities and agile architecture to be a ‘fast follower’, or to watch others take advantage of a generational shift.


It is important to understand these themes, prepare for them and see how to use them to get a competitive advantage.


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