Stakeholders advocate for good corporate governance, scalable proposition to attract investors –
To achieve a sustainable and stable fintech ecosystem, operators in the industry have been advised to put in place sound corporate governance principles and guidelines and also package their business propositions to attract potential investors. This was the opinion of speakers at the second edition of the Ecobank Fintech Breakfast Series held at the Ecobank Pan African Center (EPAC) in Lagos. The speakers who weighed in on the theme: ‘Strengthening the ecosystem’ with an emphasis on the role of good corporate governance in the fintech industry and what fintech needs to know to secure investments, emphasized that good corporate governance strengthens organizations at the same time as good value propositions and structure. determine and attract potential investors.
Tosin Iyayi, Partner, Aluko & Oyebode stated that in order to anchor good corporate governance, an organization must put in place a well-constituted board of directors that will oversee and perform the roles of strategic planning and oversight of the company’s affairs. According to her, “the board must ensure an organization that is run well in line with established ethics, rules and regulations. It must be able to add value to the organisation, review operations at every given point and give useful advice on the growth of such an organisation. Members should have good business acumen; they must have experience in running a successful business, and be able to steer the direction of the company. There should be gender diversity when constituting the board. Members should have a good knowledge of environmental, social and corporate governance (ESG) which refers to a set of standards for a company’s behavior used by socially conscious investors to screen potential investments.”
Speaking on Fintech and Fundraisers: What fintechs need to know about securing investment, Chinedu Onuoha, Managing Director, Mzuri Solutions Limited, advised fintechs startups to have a clear understanding of the need and purpose of raising funds, stressing that they should ensure that such funds are deployed for the purpose. In his words, “fintech startups should raise the funds they actually need. Sometimes you don’t need funds, but goodwill. Know when to raise money and when not to, and where not to raise money. You should have a clear insight into what you need the funds for and meet your payment schedule to avoid breaches of corporate governance and your ethics. Don’t run away from yourself so you don’t lose control and thus question your ability to run the business.”
Yemi Keri, Co-Founder, Rising Tide Africa, who spoke on how to secure funds, also stated that investors look at the product, passion and structure of organizations. “Investors are looking for good deals. You can get investors from networking events like this breakfast meeting. Visit platforms like LinkedIn. Check out profiles. There are real investors out there looking for profitable business to invest in” adding that “from our side we look at your product, your passion, your motivation. We also look at how you will leverage technology for ease of use and meeting the needs of customers. We look at your team, scalability, value proposition and structure to ensure business continuity.”
Earlier, Osahon Akpata, Group Head, Consumer Payments, Ecobank stated that the pan-African bank is paying a high premium on the growth of African fintech, stating that the fintech space is attractive. He said Ecobank provided a platform for banks and fintechs to explore areas of common interests and opportunities with a view to building a stronger ecosystem.
Other speakers at the event include Lexi Novitske, General Partner, Norrsken22 and Yele Oyekola, Co-founder and CEO, Duplo among others.
The Ecobank Fintech Breakfast Series held in partnership with Tech Cabal, a digital media and publishing company based in Nigeria, is designed to hold quarterly and aims to bring together fintech leaders across the continent to share business insights, as well as discuss relevant topics in fintech ecosystem such as regulatory guidelines, funding and other topics of interest to support both established and fintech startups at various stages of their journey.
Ecobank Nigeria Ltd. is a subsidiary of Ecobank Group, the leading pan-African banking group with operations in 33 African countries and an international presence in four locations (London, Paris, Beijing and Dubai). Ecobank Nigeria is a full-service bank offering wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinational corporations, international organizations, medium, small and micro enterprises and individuals. Ecobank is a major player in financial services distribution in Nigeria, leveraging digital platforms including Ecobank Mobile App and USSD *326#, Ecobank Online, Ecobank OmniPlus, Ecobank Omnilite, EcobankPay, Ecobank RapidTransfer, ATMs, POS’s and an extensive distribution network with over 250 branches and over 50,000 agency banks.
