Operator names mobile phones, data, BVN as pillars driving Fintech
by: JOHN DOE
on: JULY 4, 2022
in: BLOG
Three key factors have been identified as drivers of the Nigeria’s Fintech businesses.
Group Managing Director, Parthian Partner, the parent company of leading Fintech, I-invest, Oluseye Olusoga, said Fintech owes its rapid spread and acceptance to mobile phones, data and Bank Verification Number (BVN) technologies.
He shared this insight during the Nigeria Fintech Forum in Lagos, where he discussed the evolution of the nation’s Fintech landscape and the key trends shaping its growth. He highlighted the impact of the BVN on the country’s Fintech sector.
Olusoga, who participated in a panel session themed “Nigerian Fintech So Far; Assessing Trends, Opportunities and Obstacles,” emphasised that financial inclusion and FinTech’s growth have been influenced by the three factors.
According to him, “BVN literally transformed the FinTech sector; from the KYC perspective to fraud prevention techniques. A lot of FinTechs can only do what they do because of the BVN.
“However, the same BVN has become the cause of a lot of Fintech’s headaches on the flip side. For instance, overnight, NIBSS comes up with a new policy that says everyone must have this thing called ‘iGree.’
“While it could be argued that it is in line with data protection practices and so on, it could potentially turn into a nightmare for FinTechs depending on how it is implemented.”
He said the BVN could play a significant role in tracking digital footprints for online purchases and payments made through Fintech apps and using them to determine if individuals are paying appropriate taxes.
Addressing the National Identification Number (NIN), he believes that the BVN solves the same problem, and efforts should be coordinated to avoid duplicating resources.
“Since NIN was implemented after BVN and BVN seem to be working just fine. We should not waste resources trying to create something that already exists,” Olusoga said.
Looking towards the future of the sector, Olusoga highlighted the significance of policy and regulation. He emphasised the need for collaboration between practitioners and policymakers to enable innovations like wallet systems that facilitate easy and quick money transfers.
He said: “There are lots of things we still do in Nigeria that are a bit archaic, but it all boils down to policy, regulation, and collaboration. If people are willing to work together then a lot of the frictions that we currently see in Nigeria will disappear.”
On future trends, he pointed out that Artificial Intelligence (AI) will play a crucial role in reducing fraud and developing better products. AI can analyse behavioural patterns and detect anomalies, thus improving fraud detection. Additionally, the more AI is trained with digital footprints, the better it can design customised products for customers.
The future of the FinTech industry relies on effective policymaking, collaboration, and embracing AI-driven innovations to foster financial inclusion and growth in the sector. With continuous dialogue and strategic planning, the FinTech landscape could evolve and overcome existing challenges, Olusoga added.
Others at the event included the keynote speaker, Prof. Olayinka David-West, Associate Dean of Lagos Business School; CEO of aYo Nigeria, Kayode Odetola; CEO of Clane, Oladipo Alabede; Managing Director, Payment Processing & Switching at Interswitch, Akeem Lawal, among others.
