Capital market transformation incomplete without Fintech—Yuguda

By Aduragbemi Omiyale

The director-general of the Securities and Exchange Commission (SEC), Lamido Yuguda, has said that the role of financial technology (fintech) in deepening capital market operations cannot be overemphasized.

According to him, fintech can be used to attract more young people to the capital market, noting that the success achieved with the online offering of MTN was visible to the blind to see.

Mr Yuguda said this at the Supernews Nigeria Fintech Conference held in Lagos recently, where he described fintech as a game changer in deepening the capital market and improving financial inclusion.

The Directorate General, represented by the Director of Registration, Exchanges, Market Infrastructure and Innovation at the SEC, Abdulkadir Abbas, informed the participants that the theme of the event, Imperative for Fintech to Promote Financial Inclusion in Nigeriawas very important for the capital market.

“We can see a kind of game changer and rapid transformation in the financial sector due to fintech. It is a building block for strengthening financial inclusion.

“Traditional means can no longer work, the average age of investors in the capital market is 45-50 years, and we are currently trying to attract millennials to the market, and this can be achieved with the help of fintech.

“We are exploring ways to leverage fintech to bring young people to the market. The capital market sees fintech as an opportunity and that is one of the ways we intend to change the dynamics of the capital market,” he said.

Mr Yuguda stated that it was in light of the importance of fintech that the capital market initiated the fintech roadmap, which enabled the SEC to come up with innovations and rules to support the initiative.

“We need innovation to deepen and expand the market, and we had to develop rules to support it, such as, among other things, the rules on crowdfunding.

“We all saw the success achieved with the online offering from MTN, many Nigerians could easily subscribe with their phones and other gadgets. We realized that one of the ways to unlock investment opportunities is through fintech and we are stepping up such strategies to deepen the market , he said.

However, the SEC chief stressed the need to strike a balance between investor protection and innovation, adding that financial inclusion cannot be achieved without a sound financial literacy strategy, and expressed the agency’s willingness to work with other regulators and stakeholders in seeking to attract more investors to the capital market and grow the economy.

In her remarks, the Publisher/Managing Director of Supernews Nigeria, Mrs. Ngozi Onyeakusi, said the conference centered on fintech and financial inclusion, which has great potential for the Nigerian economy and for the financial stability of the country.

Mrs. Onyeakusi said the choice of the theme was aimed at contributing quota to the Federal Government’s economic inclusion goals.

“This conference focuses on fintech and financial inclusion, which has great potential for the Nigerian economy and for the financial stability of the country.

“It is a learning opportunity designed to raise awareness, deepen the understanding of participants in the role of fintech in making banking, capital markets, insurance and pension services cheaper, faster and convenient,” she said.