By Prince Okafor
KPMG in Nigeria, a global network of professional firms providing Audit, Tax and Advisory services has pointed out that large population of Nigeria adult are not getting adequate options as regard financial decision.
Partner, Technology Advisory & Digital Transformation Lead, KPMG in Nigeria, Mr. Boye Ademola, said that out of 96 million financially eligible adult population, only two million are digitally well served with 28 million underserved and 66 million unserved.
Ademola who spoke at the 2017 Digital Summit, said that the underserved refers to Nigerians that are formally banked (with a BVN) but who do not enjoy additional financial services such as Insurance, Securities, Credit, Pension, Mortgages, etc.
“When you look at the bank there are significant opportunities in the underserved. The other number that is striking is the 66 million populations that are financially underserved. This widen gap can be closed with digital innovation.”
He explained that the new wave of digital platform brings companies more close to the consumer with varieties opportunity aimed at making life easier, “This platform will bring together, lifestyle, developer and the industry at large, we also see that a lot of things cutting across payment, credit lending are yet to be exploit.
“In 2010, the most valuable companies in the world by market capitalization are non digital companies, but in 2017, seven of the top ten most valuable companies in the world are digital companies this shows that digitalization is the new way to go because it reduces unnecessary intermediary, brings innovation and also create a market place an ecosystem that everybody gets value from.”
He, however, identified alternative financing, open APIs, digital enablement and data sovereignty & cloud as the four point regulatory agenda for digital strength.
Speaking on why digital requires new business models, Head of Fintech, KPMG Isreal, Dorel Blitz identified the need for financial institution to collaborate with reputable organizational that can assist in ensuring they provide real time value to their customer.