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Banks Spend N42.7bn on Foreign Software in Two Years



foreign software
  • Banks Spend N42.7bn on Foreign Software in Two Years

Growing technological integration and the need to cut operational cost and improve the convenience of banks’ transactions has led to an increase in software investments by Nigerian banks.

A recent analysis of 10 banks’ software procurement in the last two years, showed their investments on software rose from N77.35 billion reported at the end of December 31, 2016 to N120 billion by December 31, 2018. Representing an increase of 35.5 percent.

The 10 banks surveyed were First City Monument Bank Limited, Guaranty Trust Bank Plc, Sterling Bank Plc, Zenith Bank Plc, United Bank for Africa Plc and First Bank of Nigeria Plc.

While, Wema Bank Plc, Union Bank Plc, Unity Bank Plc and Jaiz Bank Plc were the remaining four.

A break down of the banks’ annual reports showed that First Bank’s investment in software grew by 35.9 percent in the last two years to N29.36 billion, up from N18.82 billion recorded at the end of 2016 financial year.

First City Monument Bank (FCMB) spent N9.95 million on software –both developed within and acquired from outside the country — in the last two years, more than the previous total investment of N6.94 million.

United Bank for Africa Plc, one of Nigeria’s technology-driven banks, grew its software assets by 17.4 percent from N16.59 billion to N20.09 billion during the period under review.

While GTbank has invested a total of 19.8 billion in software development and procurement as of the end of 2018, representing an increase of 36 percent from N12.67 billion attained in 2016.

Sterling Bank, Wema Bank, Zenith Bank, Union Bank and Jaiz Bank’s software assets grew by 6 percent, 30.5 percent, 58.52 percent, 48.2 percent, and 18.1 percent to N4.12 billion, N4.2 billion, N28.91 billion, N12.74 billion, and N688 million, respectively.

However, Unity Bank investment in software declined from N3.22 billion two years to N80.87 million in 2018.

Earlier this year, stakeholders in the Information and Communications Technology (ICT) sector said businesses in Nigeria are spending over $400 million on foreign software renewals yearly. Suggesting that Nigerian businesses relied on foreign developers for efficient operation and security. Also, it points to the state of Nigeria’s ICT sector.

Dr Ibrahim DanAzumi, the Director-General, National Office for Technology Acquisition and Promotion, said 60 percent of technologies used in Nigeria were procured from outside.

The Chief Executive Officer, CWG Plc, Adewale Adeyipe, attributed the development to the poor state of the local ICT market.

He said: “Nigeria has a robust knowledge institution but technologies that are emanating from these institutions cannot sustain industrialisation in the domestic economy, and that underscores the high level of foreign technology consumption in Nigeria-huge technology Gap.”

He explained that the lack of experts with modern technological know-how is some of the challenges facing the sector.

“Experts with unique skills are required to address technological gaps,” he said.

Dapo Alade, a software engineer, has a slightly different perspective of the situation. According to him, at this early stage of technology growth in Nigeria, most businesses still doubt the quality of local software, especially on security. Hence, their preference for known brands or companies.

He, also noted that the work ethics of developers in Nigeria is a serious issue that has frustrated many businesses.

“Most Nigeria developers don’t follow due process. For instance, after a developer delivers a job, there might be some bugs in the application that requires additional support (after-sale support), usually part of procurement agreement, but some developers are just too difficult after delivery,” Alade stated.

However, Dr Yele Okeremi, the President of the Institute of Software Practitioners of Nigeria, noted that there has only been little improvement in the sector.

He stated that most software companies in the country did not have the required certifications.

Okeremi said, “There has been improvement in the expertise of indigenous software providers but the truth is that it could have been a lot better.

“My company, PFS, for instance, is one of the only two companies with a CMMI certification in Nigeria because it is an expensive process. But if you go to India, you will see several small businesses with the certifications.”

“On one hand, we can say people are improving but if we are moving from one to three where we could have moved from one to 15, I am not sure that is the kind of progress we want to talk about.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


Lenovo Sales in Q3 2020 Surge by 8.3%, HP Sales Up by only 0.7%




Lenovo Sold 18.3 million PC to Top Other Brands in Q3 2020

Lenovo was the top PC brand in Q3 with a total of 18.3 million unit shipments. According to the research data analyzed and published by StockApps, compared to Q3 2019 when its unit shipments totaled 16.9 million, there was an increase of 8.3%.

Based on a study by IDC, Lenovo’s stellar performance coincided with an overall increase of 14.6% in global PC shipments. Gartner’s estimate of growth in global shipments is more conservative, at 3.6%, but does not include Chromebook sales.

HP Leads US Market with 30.8% Market Share; Lenovo in Third Spot

Lenovo’s market share increased from 24.5% to 25.7% between Q3 2019 and Q3 2020. On the other hand, HP’s market share contracted from 22.3% to 21.6% in the same duration.

In terms of global shipments, HP took second place with 15.4 million shipments, up from 15.3 million in Q3 2019, a 0.7% increase year-over-year (YoY). Part of the reason for HP’s drop was a 30% YoY decline in desktop shipments. Together, HP and Lenovo accounted for 47.3% of the PC market share.

On the other hand, in the US market, HP was the top brand with 5.1 million unit shipments and a 30.8% market share during Q3 2020. Lenovo came in third, behind Dell, with 2.5 million unit shipments and a 15.3% market share.

Acer showed the highest growth during Q3 2020, with an increase of 29.5% YoY in global shipments. Dell was the poorest performer of the top brands, with a 4.6% decline YoY. According to IDC, total unit shipments during the quarter were 81.3 million, while according to Gartner, the total was 71.4 million. Chromebook shipments, which made the difference between the two reports, grew by 90% YoY.

Lastly, according to a report by Statista, the global PC industry shrunk for seven consecutive years between 2012 and 2018. It went from 365 million unit shipments in 2011 to 259 million in 2018. The seven-year slump came to an end in 2019 when worldwide shipments grew by 0.6% according to Gartner and 2.7% according to IDC.

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Combined Market Cap of Five Largest MedTech Companies Surged by $40bn YoY



Health Insurance

Five Largest MedTech Companies Gained Combined $40bn Year-on-Year

The coronavirus outbreak put immense pressure on the healthcare industry, forcing pharmaceutical institutions to roll out clinical trials for a COVID-19 vaccine at breakneck speed. However, many other companies also played a huge role in identifying symptoms and keeping the virus under control, which sparked significant innovations in the medical technology market.

According to data presented by AksjeBloggen, the combined market capitalization of Johnson & Johnson, Abbott Laboratories, Medtronic, Siemens AG, and Cardinal Health Inc., as the five biggest MedTech companies globally surged by $40bn year-over-year, reaching $394.3bn in October.

Abbott Laboratories Market Cap Jumped by 31%, the Biggest Increase in 2020

The World Health Organization defines medical technology, or MedTech, as the use of knowledge and technology in devices, medicines, and procedures to advance human health. One aspect of that which has been drawing more and more attention lately is remote healthcare services or telemedicine, as the growing number of people seek medical advice from the safety of their homes.

In September 2019, the combined market capitalization of the five major Medtech companies amounted to $354.2bn, revealed the Yahoo Finance data. By the end of the year, their combined value of shares rose to $398.7bn.

However, the first quarter of 2020 witnessed a significant drop, with the figure plunging to $359.1bn after the stock market crash in March. The following months brought a recovery, with the combined market capitalization of the five companies rising to $385.4bn in June.

The increasing trend continued in the fourth quarter, with the figure increasing by $8.9bn between June and October.

As the leading MedTech company globally, Johnson & Johnson witnessed an almost $40bn increase in the market capitalization year-over-year, growing from $340.3bn in September 2019 to around $380bn last week.

However, statistics indicate that Abbott Laboratories, the second-largest MedTech firm, witnessed the most significant market cap growth in 2020. In December 2019, the combined value of shares of the Chicago-based healthcare company specialized in nutrition, pharmaceuticals, diagnostic treatments, and medical devices amounted to $153bn. After falling to 139.5bn in March, this figure recovered to $161.8bn in June and continued rising.

In August, the company announced the US Food and Drug Administration (FDA) had issued Emergency Use Authorization for its BinaxNOW COVID-19 portable and affordable antigen test that can deliver results within 15 minutes. Since March, the company has got US authorizations for five other coronavirus tests, including the ID Now that can provide results within minutes.

The Yahoo Finance data show Abbott Laboratories market cap jumped to $194.1bn last week, a 31% increase year-over-year.

Siemens AG Market Cap Rose by 20% Year-over-Year

As one of the leading manufacturers and developers of medical devices in the industry, Siemens AG has also witnessed substantial market cap growth in 2020. Their products mostly center around diagnostic equipment and medical imaging systems, the largest contributor of more than €86.8 billion in revenue in the 2019 fiscal year. Statistics show the combined value of the German company’s shares rose by 20% year-over-year, rising from $87.4bn in September 2019 to $104.4bn last week.

The market capitalization of Medtronic plc, the Irish firm that has been at the top of the industry for nearly three decades, rose by 3.5% YoY. In December 2019, the market cap of the medical device company peaked at $151.3bn. After a sharp fall to $120.8bn in March, this figure recovered to $150.4bn last week.

The Yahoo Finance data indicate that Cardinal Health, Inc., an American multinational health care services company providing supplies to more than 75% of the US hospitals, witnessed the smallest increase in the combined value of shares. Statistics show its market cap rose by $350 million after the stock market crash in March, landing at $14.3bn last week, a 3.7% increase year-over-year.


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Buy Now, Pay Later Apps Record 8m Installs YTD, Grows by 155% YOY




8.43 Million People Install Buy Now and Pay Later Apps

Data presented by Stock Apps indicates that Buy Now, Pay Later applications have recorded about 8.43 million downloads. The downloads are on a year to date basis.

Coronavirus spurs BNPL apps downloads growth

The highest downloads were recorded as of September 20th at 1.4 million. As of January 20th, the BNPL applications had been downloaded 962,000 times.

The application downloads recorded a significant decline across the year between March and April at 767,000 and 734,000, respectively.

The Stock Apps research also overviewed the application downloads on a year over year basis. As of September 2019, the apps had been downloaded 650,000 times. During a similar period this year, the apps had recorded 1.4 million downloads.

The research explained the soaring popularity of BNPL apps registered this year. According to the research report:

“The Buy Now, Pay Later apps enables customers to purchase goods with payment plans segmented into installments. The apps have been on the rise this year as the coronavirus took a toll on the economy. Most people lost their jobs as different states imposed lockdowns to contain the virus. Due to the pandemic, consumer spending dropped. Essentially, as the economic uncertainty grew, many consumers were more comfortable buying a variety of essential items that had the option to make smaller payments over time without adding to their credit card debt.”

The research also linked the rise to consumers who are shunning credit cards due to high costs.

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