Stakeholders want good corporate governance in the Fintech Ecosystem to attract investors
By Modupe Gbadeyanka
If the financial technology (fintech) industry is to attract investors, the sector must strive to put in place sound corporate governance principles.
This was the submission from participants at the second edition of the Ecobank Fintech Breakfast Series held recently at the Ecobank Pan African Center (EPAC) in Lagos.
One of the speakers at the themed event Strengthening the ecosystem, a partner in Aluko & Oyebode, Ms Tosin Iyayi, stated that 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 overseeing the affairs of the company.
“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 sense; they must have experience in running a successful business and be able to steer the direction of the company. There should be gender diversity in constituting the board.
“Members should have 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,” she said.
Others also agreed with Iyayi, stressing that good corporate governance strengthens organisations, while good value propositions and structure determine and attract potential investors.
The Managing Director of Mzuri Solutions Limited, Chinedu Onuoha, while speaking further Fintech and Fundraisers: What fintechs need to know about securing investmentsadvised fintech startups to have a clear understanding of the need and purpose of raising funds and emphasized that they should ensure that such funds are used for the purpose.
“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 understanding of what you need the funds for and fulfill your payment plan to avoid breaches of corporate governance and your ethics. Don’t run away from yourself lest you lose control, thereby questioning your ability to run the business, he said.
Rising Tide Africa co-founder Yemi Keri, who spoke on how to secure funding, 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 businesses 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 operation and meet the needs of customers. We look at your team, scalability, value proposition and structure to ensure business continuity.”
Earlier, Ecobank’s Group Chief Executive Officer for Consumer Payments, Osahon Akpata, 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 of Duplo, among several 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 the 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 Limited 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.
