SEC Calls For Use of Technology to Deepen Financial Inclusion

The Securities and Exchange Commission (SEC) called on policymakers and capital market stakeholders to leverage technology to increase access to financial services and deepen financial inclusion in the country. 

The Director-General of the SEC, Lamido Yuguda made these comments at the 2021 Capital Market Correspondents Association of Nigeria workshop which was held in Lagos during the weekend.

He said there were over 191 million active mobile subscribers and 140 million active data subscribers in Nigeria as of the 3rd of October 2021 and that presented a cost-effective means of providing financial services to the untapped market, especially in the rural areas.

His full statement was “Leveraging technology to offer financial services has advantages over traditional means because it breaks down geographical constraints, It also simplifies the means of serving existing customers, for example through the use of mobile banking agents to perform banking transactions”.

Financial institutions in Nigeria are increasingly using electronic channels to onboard clients and address customer queries and bring financial product offerings to prospective users.

When he was asked what steps the SEC is taking to boost financial inclusion, he said the SEC has taken steps such as working with the Fund Managers Association of Nigeria to accelerate financial inclusion to collective investment schemes.

The SEC is also proposing a hackathon challenge to help develop a comprehensive suite of mobile internet-based services targeted at having an end-to-end process of the entire capital market.

The Deputy Director, Securities offerings at SEC, Abdulkadir Abbas also spoke during the event and said there was a need for active collaboration of all capital market shareholders to help drive the initiative. He said the adoption of technology can help open up the capital market and bridge the gap of the unbanked. He also said the average age of participants in the capital market is 53 years and that youths need to be motivated to come and trade on the capital market.