Business

April 27, 2023

Vanguard/Economic Forum Series: Banking, lifeblood of economic growth, devt – 9mobile MD

Juergen Peschel, MD/CEO 9mobile says banking sector is lifeblood of economic growth and development

By Biodun Busari

The Managing Director and Chief Executive Officer of the communications giant, 9mobile, Mr Juergen Peschel has said the banking industry is pivotal to the economic growth and development of Nigeria.

He described the banking sector as the key to unlocking wealth and creating opportunities which allow individuals and corporate entities to thrive in the nation.

Peschel made this known at the Economic Forum Series organised by Vanguard Newspapers, in partnership with the Central Bank of Nigeria, which holds on Thursday, April 27, 2023.

The programme, an annual event ‘FinTech CyberSecurity & Fraud Summit’ was themed ‘The Role of Cybersecurity in FinTech Regulatory Digital Economy’ and took place at the Civic Centre, Ozumba Mbadiwe, Victoria Island, Lagos.

In his speech, Peschel said, “The banking system functions as the heart and lifeblood of any functioning economy. A banking system is the key to economic growth and development. It is essential to unlocking wealth, creating opportunities, providing jobs, and facilitating commerce. 

“It allows individuals and businesses to participate in the global economy. Banking is at the heart of the matter: Banks are crucial to the modern economy, helping to keep the economy running smoothly as the primary supplier of credit.”

He noted that trust is pertinent to the survival and sustenance of the banking sector and it has to be guided judiciously.

“Trust is the nuts and bolts of the financial services and, indeed, the banking sector. Trust has always mattered in banking. But it has been a particularly thorny issue since the 2008 financial crisis when it became clear that banking practices did not always serve customers’ best interests,” Pechel said.

He further added the importance of FinTech in nurturing the economy of the most populous African country, describing it as the link of business to the Internet.

Peschel said, “The global new normal that has compelled all businesses, including commerce and banking, to go online has opened a vista of opportunities for FinTech companies that develop apps that connect businesses to the internet.

“FinTechs have changed the narrative in the financial sector by digitally transforming all banking transactions to a level where bank customers do not need to stay in long queues to access financial transactions. 

“With the multiple apps developed for financial transactions by FinTech players, customers can now transact seamlessly from their mobile devices through downloaded apps that support such transactions. 

“Developing payment apps has become a lucrative business for FinTech players since they offer services to small, medium, and enterprise companies, including individuals who are bank customers.”