The Managing Director of SystemSpecs limited, an indigenous Financial Technology company and owners of Remita, John Obaro has stated that FinTech products have not come to displace banks in Nigeria but for traditional banks that refuse to innovate.
Obaro said this during his interview the media published over the weekend by Thisday.
According to Obaro, FinTech are a threat to traditional banks that choose to remain conservative. Forward-looking banks will be excited about the possibilities of FinTechs. They will look at how to maximise partnerships with technology companies. In Nigeria, not all the banks are on the same level of cooperation with the FinTech industry. Some banks recognise that they stand to gain more by embracing FinTech, but some are still a bit confused and will need to be further informed to be part of the future of banking. FinTechs are only firms that have been able to use their resources to re-engineer some of the processes in traditional banking.
“FinTechs cannot go alone, they need banks and that is where the partnership comes in. So, the confident banks recognise the need for this kind of partnership and the win-win model comes in. For instance, SystemSpecs came up with a solution for clients to see and operated their accounts across multiple banks on a single screen.
“Initially some banks were scared but the truth is, the focus should not be on the banks, it should be on the customers. What do your customers want? A typical customer has account in multiple banks for various reasons.”
If you want to have an idea of what is going on, while Bank A may then think giving that solution to their customer is a threat to their own business, Bank B recognises that the way to hold customers is to give them what they want because after a while these customers will begin to shift their businesses to banks that put their own priority first and not banks that are trying to lock them down by any means,” Obaro said