A friend closed her account with one of the banks last week. She could not take it anymore. She had approached the bank to transfer her fund into one of her subsidiary’s accounts. At another branch. In the same bank. Close to her residence. However, she wanted the former account closed. The bank said no.

She approached the relationship manager. The manager apologised. Promised to activate the request. She did not. My friend returned to the bank two months later. She spoke with another manager. Another manager told her the cause of the delay. People problem. Above all, the branch would not want to lose the customer to another branch. The bank has lost a customer. She would tell her friends. Her friends would tell their friends. Do you get the drift?

On the other hand

More banks could lose customers. As shown by the recent research of www.pymnts.com, many of the banks could lose nearly 40% of Gen Z and millennials due to a lack of innovation. The research explained that potential customer loss could outweigh the cost of investing in payment methods that consumers demand.

It said payment options matter to account holders across generations. Although the younger demographics are most willing to switch their current financial institution over a lack of innovation.

PYMNTS’ May collaboration with PSCU, “Credit Union Innovation,” found that 29% of account holders overall would consider switching to a financial institution offering innovative payment products. The collaboration discovered that almost one-third of account holders could leave the friction-filled effort of transferring banks over the lack of payment methods. This may be alarming enough for institutions that have so far delayed offering these options.

PYMNTS’ May collaboration with PSCU, “Credit Union Innovation,” found that 29% of account holders overall would consider switching to a financial institution offering innovative payment products.

Although a higher share of younger consumers agreed with the sentiment. 38% of bridge millennials, 39% of millennials, and 38% of Generation Z consumers said they would consider switching. If banks lose these lifetime customers now, or in the middle of their financial journeys, does it mean that banks that lack innovation could face higher long-term profitability issues if these consumers switch?

READ ALSO: How criminals transfer funds to evade arrest, By Rarzack Olaegbe

The research postulated that as difficult as it may be to maintain targeted customer retention rates in the current ultra-competitive environment, luring consumers back after they have already left might be near impossible.

From hindsight, it would be difficult to lure my friend back again. The bank in question did not tick any of the boxes. It failed to engage my friend: phone call, email, or short message system. The so-called relationship manager failed to manage my friend. All right. Let us assume it was a people problem. If that is not the function of a manager, what is it?

Aside from this, tech innovations – which many neo-banks and online payment firms have brought to the game especially when it comes to consumer-facing offerings – are becoming options for customers. This is because bank customers now demand increased connectivity and more money mobility options. The collaboration concluded that a large slice of younger consumers has made it clear that financial institutions that are not stepping up could be left behind.

On the other hand

A neo-bank with other branches would never let the customer go. It would speedily accede to the request. The neo-bank has nothing to lose. The fund is still domiciled in its till. There is a marriage between the parties. That the fund leaves a bank branch is immaterial. Well, what do I know? I am not a banker.

In the short term

Do not blame the relationship manager.

Whom would you blame?

Blame japa!

*Olaegbe (psalmsonolaegbe@gmail.com)

The post Why some bank customers could leave and cling to Fintech appeared first on Frontpageng.

Politics is in the front row. Another issue is secondary. Everybody discusses how the next president will emerge. Who will be the next president? How will he emerge? What is his economic blueprint? Does he understand what Fintech stands for? Does he have a full grasp of technology? And innovation? Does he know what Fintech is? Does he care about Fintech? Or about the votes?

These are not political questions. But they are entrenched in politics. There arises the challenge. If you say, you are apolitical how can you write about politics? It is akin to saying you are not an economist. But you are interested in demand and supply. Being apolitical does not mean being uninterested in politics. Being apolitical in this context does mean you do not want trouble. Hey, before we divagate, this is Fintech. The focus is on how the next president plays in its progression.

Will the next Nigerian president care about Fintech, Fintech startups, or Fintech incumbents?

On the one hand

The world’s biggest economy, the United States, is the capital of technology innovation. Some say it is China! Well, the McKinsey 2017 global comparison, says China had invested more than $7 billion in Fintech! The United States, on the other side, had invested $5.4 billion. Anyway, for this discourse, let us focus on the United States. Through subsidies, subventions, grants, endowments and investments, the biggest investor in American technology advancement is the taxpayer.

READ ALSO: How criminals take over PoS business, By Rarzack Olaegbe

Aside from this, the US juggernauts have received financial support from the US government. Tesla. Amazon. Microsoft. Meta. Twitter. They have all received subsidies from the US government. For instance, Mic.com wrote that Google picked more than $630 million from states like Oregon, North Carolina and a few others.

What does a multi-billion dollar company that controls the majority of the world’s internet need with more than $630 million in government subsidies? Because the United States government knows what Google stands for. Will the next Nigerian president care about Fintech, Fintech startups, or Fintech incumbents?

On the other hand

Fintech1000 plus, Africa’s largest online community of Fintech experts, met with one of the presidential candidates recently. Sir Ademola Aladekomo, chair of Chams Plc, facilitated the meeting. Sir Aladekomo is one of the architects of today’s Fintech market. These Fintech experts control most of the Fintech firms that own the future of our economy. John Obaro of SystemSpecs and Iyinoluwa Aboyeji of Future Africa and others attended the meeting.

Therefore, Mr Obi listened to the Fintech experts. He reiterated that Sir Aladekomo first mooted the idea of the National Identity Number and biometric database. Sir Aladekomo and Obi have been friends for over two decades. The politician confirmed while addressing the fintech minds that he had done business with Aladekomo. Aladekomo introduced the politician to the Nigerian tech community. The meeting was private. The meeting was about fintecholitics. What are these critical matters in fintech and tech? The lack of genuine and sustainable government support for technological innovation.

The meeting was to uncover these issues before the next presidential candidate. Chinenye Mba-Uzoukwu, who doubled as the Nigerian Economic Summit Group representative and a member of Fintech 1000 plus advised Obi and other candidates to wake up to the fact that Nigeria might be too far behind because it appears “we’re investing to catch up with the past, not prepare for the future”.

Being apolitical does not mean being uninterested in politics. Being apolitical in this context does mean you do not want trouble.

He said that the advancements made by the United States and China et al are currently driving the world. These advancements arrived many years. “It appears that what we are doing is to update archaic science with yesterday’s tech.”

In the short term

What did Obi say?

He digested the presentations of the Fintech experts.

Did he respond to their presentations?

His response will matter if he emerges as the next president.

Does he care about fintech or the votes that might come from the fintech ecosystem?

That question is political.

*Olaegbe (psalmsonolaegbe@gmail.com)

The post Should the next president expect votes from Fintech ecosystem?  appeared first on Frontpageng.

On the one hand

A lack of adequate funding is a challenge confronting SMEs in Nigeria. And some loan sharks are taking advantage of this loophole. For instance, to qualify for credit in any of the loan companies I visited recently, you need an identity card, one passport photograph, postdated cheques from your guarantor, a bank statement showing six months’ transactions and a valid utility bill. The other requisites you must have is the processing fee, a guarantor’s confirmation letter, an application letter to be filled, signed and sealed by your guarantor, an offer letter and collateral.

A lack of adequate funding is a challenge confronting SMEs in Nigeria. And some loan sharks are taking advantage of this loophole.

The collateral must be a car that is not less than ten years old. You would park the car on the premises of the credit company and submit the valid documents to the management. There are many rivers to cross before you can secure the loan. Having listened to the litany of prerequisite credentials needed before an applicant can smell the cash I wondered why an applicant must supply all of the above information before getting a loan facility. The managing director said many customers have duped the company.

He explained that one of the applicants in the past had sold the car he presented as collateral before handing it over to the company. The buyer sued the company. The buyer won. Another applicant fled the country after having gained access to the credit. He said efforts to recover the loan failed. Another applicant collected the credit and relocated to his village, changed his SIM pack and name, and destroyed evidence linking him with the credit company. The company lost its investment.

He shared another sad experience and another and another. This credit company is thriving because the banks, microfinance banks and some online lenders are not playing their professional roles adequately. If these financial institutions perform at an optimal level this slaughterhouse would not thrive.  For instance, I visited another popular credit company that promises to give as much as N5 million to business owners. Having fulfilled all the paperwork, my application did not scale through because my bank statement, which met all the conditions, does not have a “monthly inflow.”

It is quite obvious that credit companies are searching for mom-and-pop shop owners and salary earners who have a steady monthly income flow.   The operators of this popular loan company forget that every business at some point in its operating cycle requires some form of finance to pay its short-term indebtedness, fund new projects, execute business plans and acquire operating assets. Likewise, individuals at some point may need bank loans to help fund car purchases, real estate mortgages or buy house home appliances.

READ ALSO: How criminals take over PoS business, By Rarzack Olaegbe

The management of these credit companies and the banks should know that not all businesses generate monthly inflow. Some companies have a 45-day financial inflow and other businesses get a 90-day inflow. This fact means that some businesses would not find banks or loan companies attractive. That is why many of them keep running back to the slaughterhouse where they are treated like animals.

On the other hand

Online mobile lenders such as Branch, Kudi, Zedvance, Social Lenders, and Palm Credit etc are on the increase and these lenders are using machine learning to analyse the ability of the applicants to repay. Many business owners are getting loans, too. The Central Bank of Nigeria’s Credit Condition Survey Report showed that there was an increase in the availability of secured credit to households and corporates in the first quarter of 2018. But why do other individuals and business owners keep patronising these slaughterhouses?

One of the operators said many of the borrowers cannot fulfil their requirements of the loan agreement and repay the principal, they can renegotiate and this has worked very well. Aside, they still pay the interest and all charges on the loan. Some of them have found it easier than taking a bank loan. Another option is to get an unsecured loan and pay a higher rate. This flexible and smooth transaction has made it attractive to many Nigerians. That is the tradition of the slaughterhouse. Bring in the animal and prepare it for slaughter.

But why do other individuals and business owners keep patronising these slaughterhouses?

From the sideline

Have you encountered a loan shark?

Yes, I was threatened, harassed, and assaulted until I paid my loan.

Will you do it again?

If you mean visiting a loan shark again? Yes, I will.

Why will you do that?

I am wiser now. I will handle it better now.

What will you do differently?

I will lay down the rules.

*Olaegbe (psalmsonolaegbe@gmail.com)

The post How loan sharks fish in murky waters, By Rarzack Olaegbe appeared first on Frontpageng.

Welcome to the unicorn club. That was the title of the 2013 article written by Aileen Lee in TechCrunch. Lee, an American venture capitalist, is also the founder of Cowboy Ventures. Eight years after that coinage, the unicorn is used to describe a financial behemoth.

The article, Welcome to the unicorn club: Learning from Billion-dollar start-ups, described unicorns as privately held companies with a billion-dollar valuation. She called such companies unicorns because they were rare. Only a few existed when she coined the term.

In June 2021, research shows there are over 600 unicorns in the world. They have raised $442 billion in total. They are valued at around $2 trillion. These unicorns are so relatively uncommon. They have seen increasing success. They have gained market momentum. They are boosting the market. As such, they have a mythical classification due to their rareness.

A venture capitalist told me that investors and venture capitalists generally determine the value of unicorns. She said all the valuations hinge on whether the investors believe the companies will grow and develop over time.

A venture capitalist told me that investors and venture capitalists generally determine the value of unicorns.

“Take it from me. It is all longer-term forecasting,” she said. The valuations have nothing to do with their financial performance. Many of these businesses rarely made any money when they first started. Oga, if the start-ups-turned-unicorns do not make money, why are they unicorns? Are you asking me? Yes. I would reach out to Lee. Whatever Lee’s answers are, you would get them. Thank you. I would be waiting.

READ ALSO: How you can join the billion-dollar tech club, By Rarzack Olaegbe

My venture capitalist friend said the investors do face some difficulties in their forecast. If there were no competitors in the industry, there would be no other business model to compare. That would make the process complicated. So far, out of the seven unicorns in Africa, Nigeria has six.

Here is a list: Andela, Flutterwave, Interswitch, Chipper Cash, Jumia and Opay. The unicorns are stimulating competition. For instance, in the fintech ecosystem Interswitch, Flutterwave, Paystack, TeamApt and Opay are competing. Take Flutterwave. Born in 2016, it facilitates international payments for African and international companies such as Facebook and Uber.

It has touchpoints in five countries. Take Interswitch. Born in 2002 when no one was interested in Africa, it did not get outside funding until recently. It processes 22 million debit and credit cards through its Verve offering. About 190,000 businesses use its platform to process transactions. It has footholds in three countries.

From the sideliner

The legacy fintech firms are looking over their shoulders.

Are they afraid?

No, they are watchful. Alert.

They are aware that these unicorns have access to outside funding and can spring surprises. Ok, does that mean the unicorns cannot become dinosaurs?

It depends.

On what?

I would not know. Maybe we could hold a Zoom meeting with Lee.

The post Do unicorns stimulate competition or what? appeared first on Frontpageng.

George Washington founded the Presidents Club at the inauguration of John Adams in 1797. It was an exclusive club of two members. In 1953, Harry Truman and Herbert Hoover re-established The Presidents Club firmly with rules and regulations. It has an unofficial code of ethics. The code of silence forbids former presidents from openly attacking other members. It is a closed club.

The huge cost of operations impeded some startups. Irregular power supply has increased the use of diesel-powered machines.

On the one hand

The billion-dollar technology club is not a closed one. It is not open either. You do not apply to join. You have to merit an invitation. You have to show you have arrived. You have to earn the right to join. That is why most exclusive clubs have high entry barriers.

The billion-dollar technology club has technology firms that have reached the $1 billion dollar milestone. Alternatively, a technology start-up that has a $1 billion valuation. These Fintech firms are unicorns. As a unicorn, it does not mean you have arrived. It means you have the growth potential to “disrupt the market or create a new market.”

One of the venture capitalists told me that having a $1 billion valuation does not mean a start-up has $1 billion in revenue. Venture capitalists fix the price tag on the company. It is for the purpose of investments. In summary, the venture capitalists made the unicorn.

READ ALSO: How to fill Nigeria’s Fintech talents gap, By Rarzack Olaegbe 

On the other hand

The popular social media audio app, Clubhouse raised $100 million in the first round of valuation. Virtual events platform Hopin hit a $2.1bn valuation one year after launch. It raised $125 million in the second round of funding.

Fintech is in a continuous state of growth in Nigeria. It is throwing up more unicorns. The first unicorn is Interswitch. It reached that status when Visa acquired a 20 per cent stake in 2019. Mitchell Elegbe established the company 18 years ago. Another company that is riding the unicorn wave is Flutterwave.

Flutterwave and Paystack are club members. Stripe acquired Paystack for $200 million in 2020. The grade is incomplete because your own start-up is not on the list. That is because there are other unicorns brewing in the tech laboratory. The world is waiting. The world would not wait forever. But the more challenges we have as a nation, the more we require innovation to surmount those challenges.

That is why different Fintech firms are innovating. Some have revolutionised payment wallets, remittances, processing, merchant service providers, and lending. Others have modernised infrastructure, wealth management, and savings. However, we have more work to do. We have more Flutterwaves to discover.

Study by the Digital Frontier Institute shows Kenya is ahead in terms of growth and innovation. Nigeria is second. Tanzania is third. South Africa is fourth. To close the gap, we cannot doze off. We cannot rest. We have not arrived. Because we have not scratched the surface yet.

Granted that Fintech firms are redefining how we perform payments, they have brought an ease and absolute ease to banking and made it borderless. Aside from this, Fintech activities in Nigeria still hover around payments. That is why we have more payment solutions. This trend will continue unless we innovate in other sectors.

There are territories to conquer in consumer lending, agriculture and asset management. Fintech firms have not covered the insurance and healthcare sectors. A 2020 report by McKinsey & Company on harnessing Nigeria’s Fintech potential noted that consumer lending has 30 per cent coverage. If we can increase this to 50 per cent then we can say we are on the way to paradise. If we can cover 30 per cent of the insurance and healthcare sectors then we can say, “Keep it up.”

However, we cannot say that because there are still more grounds to cover, more work to do and more sectors are waiting to feel the Fintech magic. This means that if you are a start-up you have the opportunity to join the billion-dollar club. To join simply innovate. Why is Kenya ahead of Nigeria? What is Kenya doing right that we cannot do? Where did the Kenyans get it right?

Poor internet connectivity brings the burden of subscribing to many service providers. High cost of real estate has brought strangers together.

We have a dearth of infrastructure. The total lack of infrastructure has slowed our upward movement. The huge cost of operations impeded some startups. Irregular power supply has increased the use of diesel-powered machines. Poor internet connectivity brings the burden of subscribing to many service providers. High cost of real estate has brought strangers together.

From the side

In spite of the challenges, some Fintech firms have raised their games.

I know. They are innovating.

Is that how to attract the attention of the global equity firms from the USA, Europe and Asia?

No. That is how to join the billion-dollar club. That is how your own start-up can join the club.

Judging by the rate of growth and innovation in the Fintech ecosystem, we are likely to see a new member of the exclusive billion-dollar club this year.

That is exclusive news.

*Olaegbe (psalmsonolaegbe@gmail.com)

The post How you can join the billion-dollar tech club, By Rarzack Olaegbe appeared first on Frontpageng.

Did the recruiters fail? Did they fail because they hired flight-risk talents who quit the firms after two years? Maybe not. Most recruiters see a candidate who has a founder’s experience as a red flag. So, they do not recruit such a candidate. They missed the submarines. Nobody noticed them. They suddenly emerge within and fly away.

Recruiters often look at retention rate and role fit. They do not hire a former founder. Writing under are former startup founders less hireable in hbr.org,  the authors argued that no one will know if you fail to offer an interview to a candidate who could become the firm’s next big thinker. But no one will forget it if you fight for successful former founders, only for the founders to leave the company within a year to begin new startups. Or go with other employees in tow.

Recruiters often look at retention rate and role fit. They do not hire a former founder.

On the one hand

The following hires left. They left to become the boss. Ansia Leng quit Google. She is a co-founder of Hatch.Co – an online marketplace for custom-made goods. It connects makers to customers. She told Business Insider that she had an incredible network of managers at Google. But she is compelled to carve her path.

Likewise, David Jones quit Havas Global. He founded One Young World – a global youth forum that connects young adults with a network of leaders. Also, Jasper Vallance was a manager at Google. He is the founder of Jasper Online Consulting. While at Google, he had three meals a day. Cooked by talented chefs. Free yoga. Massage. Extravagant overseas conferences. Still, he left.

READ ALSO: How to fill Nigeria’s Fintech talents gap, By Rarzack Olaegbe 

In the same vein, Sachin Agarwal left Apple. He founded Posterous. Working at Apple was Agarwal’s dream job. He was a fan of Apple’s products. He eventually helped to design those products. He had a problem. Agarwal told Mashable that he felt a “burning desire” to build a better way to share photos and content on the Web. That surpassed his desire to work at Apple. Twitter acquired Posterous. Agarwal and the Posterous team joined Twitter. Life goes on.

Tony Fadell also left Apple. He founded Nest Labs. Google acquired Nest Labs for $3.2 billion. Meanwhile, Fadell still works 60-70 hours per week. His role with Nest has given him the one thing he longed for: More time with his family.

On the other hand

The following flight-risk “founders” quit Paystack for the same reason. Abdulhammid Hassan was a product manager. He and Prakhar Singh founded Mono – an open finance technology that offers APIs that give businesses user-permission to access their customers’ bank accounts. Mono got a $500,000 pre-seed investment from early-stage investors. Y-Combinator invited Mono into its winter 2021 Batch. Mono covers Nigeria, Ghana, South Africa, and Kenya.

Idorenyin Obong, an Android engineer, left to start Grey, formerly Aboki Africa. The company provides a platform for Africans to create digital foreign accounts to send and receive international payments without the traditional foreign exchange setup. Grey is in Y-Combinator’s winter 2022 batch.

Femi Aluko and Olumide Ojo were former backend principal engineers and frontend principal engineers respectively. They are the founders of Chowdeck. Aluko was inspired to build a reliable food delivery start-up in Nigeria – an on-demand food delivery startup. Chowdeck allows customers to order their favourite local and continental dishes from preferred restaurants and get them under 30 minutes. Chowdeck is also in Y Combinator’s 2022 winter batch. “Every single era in Paystack has prepared me for the problems I’m solving today,” Aluko wrote on his medium page.

Emmanuel Okeke was a senior software engineer, engineering manager, and technical lead. He is now the co-founder and CTO of Brass Technology. Ezra Olubi, the co-founder of Paystack also invested in Brass.

Kuassi Jimmy Kumako has integration and developer experience. Now, he is the co-founder of Moneco. The company is in Y Combinator’s summer batch 2022. It received an investment of $500,000 from the renowned accelerator. Ikechukwu Obi was a technical product specialist. He founded Alvative. The firm provides African startups with temporary or full-time junior to medium technical support personnel.

But no one will forget it if you fight for successful former founders, only for the founders to leave the company within a year to begin new startups.

From the sideliner

Africa’s fintech ecosystem is growing.

The next founders are daring. They offer rare solutions.

But they are still getting funds outside the shores.

The ecosystem is experiencing success. That is what matters.

But one thing is missing, though.

What is that?

We need a Paystack Club – a fintech firm that incubates start-ups and funds them for the next phase.

You are a flight-risk hire!

The post Why do Fintech firms hire flight-risk talents? appeared first on Frontpageng.

We have new road networks. High-rise buildings, malls and hospitals sprout daily. But expected changes are unnoticed. There are not many tech startups in the construction industry. Instead, startups have concentrated on payment and remittances.

No matter how skillful you are, you can improve. There is room for improvement.

Citizens can access live data. Research has shown that this allows them to view real-time reporting of a structure’s condition. The managers will have the same data. They will set maintenance and emergency timelines. They will evade disasters. Ukconstructionmedia.co.uk informed, “A key sensor can be worth a thousand visits by an inspection engineer.” The sensor can alert to different patterns of frequency and life.

Technology can improve infrastructure’s longevity. It can alert during extreme weather conditions. In Greece’s Charilaos Trikoupis Bridge, the structure’s inbuilt sensors detected abnormal vibrations in the cables. Engineers installed additional weight to dampen cables. Without technology, inspectors will not know its fragility.

On the one hand

In Nepal, Rumee Singh is using technology to improve infrastructures. Working with her husband, her blockchain-focused startup has supported and launched initiatives in education. Finance. Healthcare. And agriculture. Singh returned to Nepal after 13 years in the USA, working in corporate communication and financial literacy programmes.

Speaking to restofworld.org, Singh said, “As a developing country, we are still struggling with basic issues that you tend to take for granted. In Nepal, patients’ families have the burden of managing blood themselves, and women in maternity are heavily affected.” To overcome the challenge, Hamro LifeBank leveraged digital technology and data analytics. The company digitized blood banks and created a harmonized donor database. It generated a data-centric blood hotline. “With blood, the power of information at the right time can be the answer to a life-and-death situation,” she said.

Aside from this, she is using blockchain technology to build greater financial inclusion. Nepal is prone to natural disasters. These situations intensified with a significant population living in extreme poverty. She said women and girls are vulnerable to inequalities from cultural beliefs and traditional practices.

She is working to benefit marginalized communities. She said a lack of digital readiness in vulnerable areas makes it challenging. The onboarding hurdle in lack of digital literacy makes processes expensive and a challenge. More initiatives focusing on building impact can have ripple effects.

On the other hand

Since Nepal is leveraging the potency of technology, Lagos can do it. Lagos state can adopt technology to improve its tourism. Sports will benefit from technology. The fashion industry in Lagos will quadruple if technology is incorporated. Lagos could be the carnival capital of the world.

The technology could make the city of Lagos much better than what we have. Music has benefitted from technology. But water transportation is lagging. The technology to make this viable is available. Having a light rail between the road networks is welcome. Turkey has it. Lagos can do it, too.

From the side

You need innovation to achieve what Singh did.

You have overrated innovation. You cannot fix problems easily.

Therefore, we should sit on our hands.

No. To fix a problem is a tall task. Besides, you need the funding. Investment is required. The right network has to be available. A tech startup cannot dabble into improving infrastructure without knowing where the butter will come. Or who will support it? Or who will fund it?

A tech startup cannot dabble into improving infrastructure without knowing where the butter will come.

Are you saying we should discourage infrastructure-focused tech startups?

No.

Do you know that sustaining a business is challenging?

How does Singh do it in Nepal?

Maybe we need to go to Nepal.

That is an improvement.

*Olaegbe (psalmsonolaegbe@gmail.com)

The post How tech startups can improve infrastructure, By Rarzack Olaegbe appeared first on Frontpageng.

For instance, some factory floors deploy robots to increase machine learning. This has encouraged people to work alongside the machine. Machines turn hand-drawn sketches done by humans. These sketches are digital source code. This idea has helped Airbnb. Airbnb enables homeowners to rent out their homes to travellers. This firm has a new artificial intelligence that empowers its designers and product engineers to take ideas from the drawing board. And turn them into actual products.

New training programmes are required with the ever-changing nature of the Fintech industry. To support upskilling. To advance products and services. To close the gap of talent shortage.

On the one hand

Machines are transforming human creative endeavours. Machines and creatives are working together. Especially in the Fintech ecosystem. But there is a paucity of human skills. The talent gap in the Fintech space is glaring. Why? Research has shown that Fintech is a fast-moving sector. It has changed how to deliver traditional financial service. Fintech has evolved.

But the subjects taught in Nigerian universities have not evolved. There is, therefore, a clearly identified skills gap. Blockchain. Cybersecurity. Programming. Big data. Machine learning. Artificial Intelligence. Deep learning. And soft skills. These skills are in high demand. Artificial intelligence and Blockchain show the largest gaps. Sustainability, resilience, operational disruptions, and changing customer demands have lower gaps.

To maintain competitiveness, Fintech firms depend on fast and continuous evolution of technologies. To access the right candidates and talents in the right geographies is vital. KPMG and H2 Ventures in their 2016 report, Fintech100, explained that the persistent skills gap in the Fintech industry illustrates the existing change in employers’ needs. Employers need the most suited candidates with the right skillset. This is to match the growing demand of newfound alternatives in the industry. The difficulties of a limited pool of technology candidates hamper the existing skills gap.

According to the Institute of Coding and Manchester Metropolitan University report, limitations exist in the evolution of Fintech. Regulatory burden and reliance on the supply of skilled labour are limitations. These have negative effects on technological innovations. The report informed that to meet Fintech’s demands, you need elastic skills. You need innovations and changing practices.

On the other hand

Take big data, for instance. It comes as structured and unstructured data. Electronic devices generate big data. The data is too large. Regular databases cannot handle it. Cannot process it. The data has a high volume. It has high velocity. It has a high variety. It is structured data. It has numbers. It has names. It has addresses. It has different ages. It has dates. The unstructured data is different. It has videos. It has images. It has audio. The structured data can be analysed and processed easily.

But the unstructured data cannot be processed easily. It requires a special technology. Big data can detect fraud. It can be analysed to construct habits. It can explain behaviour. It plays a crucial role in the evolution of Fintech. The skill is in high demand. If you are a scientist, you are a billionaire. You would sit in the hallowed chamber of big tech companies. You would dine with Bill Gates. You would wine with Mark Zuckerberg.

But there is a gaping hole. To fill the hole, Fintech companies, top universities, and research institutions could collaborate to train the workforce. On the flipside, upskilling is another way to keep the current employees within the industry. With upskilling, experienced workers will desire to start something new to enrich their current skill through training.

This is crucial in retaining talents within any organization. Available training schemes would allow new recruits and experienced employees to build diverse skills. This is an investment. It is the right investment in the careers of the workforce. It is an opportunity to gain an insight. To plan for a career future. If the Fintech industry lacks high quality training with a variety of choices, employees would not be encouraged. But this is not so. There are competent trainers. This would spur employees. It would discourage them from leaving altogether.

New training programmes are required with the ever-changing nature of the Fintech industry. To support upskilling. To advance products and services. To close the gap of talent shortage. Fresh graduates would come. Skills would multiply. Already, Beijing uses top universities and research institutions to train the Fintech workforce. This should be replicated.

To support the development of alternative programmes of learning, we need apprenticeships and work placements. We can groom talents. We can harvest talents.

It would create diversity in the talent pipeline. It would provide role models for pre-university education. It would support employers. To attract and retain a larger and diverse workforce. Universities should collaborate with the Fintech industry to increase awareness of Fintech. To bring financial service innovation closer to the undergraduates.

From this side

To support the development of alternative programmes of learning, we need apprenticeships and work placements. We can groom talents. We can harvest talents. Talents would develop machines. Machines would do the heavy lifting.

Yes, Bigmummy. That way machines would learn from humans. Machines and human work side-by-side. Machines win. Humans win.

*Olaegbe (psalmsonolaegbe@gmail.com)

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Researchers at Massachusetts Institute of Technology have developed a new type of catalyst material. It is called a metal hydroxide-organic framework (MHOF). It is an inexpensive and abundant component. It allows engineers to tune the catalyst’s structure to the needs of a particular chemical process. It matches or exceeds the performance of conventional more expensive catalysts.

Mobile payment has a special place in the fintech environment. The underbanked depends on this channel. The trend can even put an end to the use of traditional wallets.

These findings appeared on February 24, 2022 in the journal, Nature Materials. Oxygen evolution reactions are common to the electrochemical production of fuels. And chemicals. These processes include the generation of hydrogen as a by-product of the oxygen evolution. This is fuel. It can produce other transportation fuels.

On the one hand

Mobile payment is a catalyst that is transporting the fintech industry. Yes, the fintech industry has undergone significant changes. This is due to the appearance of numerous fintech-startups. The number has continued to grow. But innovations have come through technology specialists. Through people who aim to offer better user experience. As such, mobile payment has become a catalyst for the new wave of growth in the industry.

Mobile payment has a special place in the fintech environment. The underbanked depends on this channel. The trend can even put an end to the use of traditional wallets. Joey Richard, writing in Klizo.com, says mobile payment has created new opportunities for businesses and individuals. It has helped them to manage money more efficiently and effectively. “Thanks to mobile payment technology in the fintech space. Many of the most cumbersome and complex financial processes have become more accurate. Simple and efficient”.

Many people are still used to the traditional wallets. But Google, Apple, and Samsung have already introduced their own versions. Soon, the global population will embrace mobile payment. For instance, PayPal Holdings is a market leader. This is due to its web platform. Not its mobile wallet apps. While it’s easier to make transactions these days, research shows, security questions rise along the way.

Many mobile applications enable users to make transactions in one-two clicks. But this simplicity makes them less secure. Experts have voiced their views on this. So the protection of user authentication and protection against fraud becomes more complex. But some catalysts could push fintech to the next height.

Obviously, fintech is no more about payments again. Online credit and stock markets are competing with the banks. Research shows that mobile payment has allowed the banks and other financial institutions to improve their services. It provides the customers with innovative services. It offers new products. The outbreak of the Covid-19 pandemic has attracted more people to mobile payment.

On the other hand

Sanjay Singh, founder and CEO at Technource says financial services have revolutionized the advent of Artificial Intelligence. Numerous transformations in the way money is being handled. AI helps a business to analyse huge volumes of data to gain new information and insight. It helps businesses to discover new patterns and enhance the decision-making process.

The high efficiency has fuelled the growth of finance development ideas. “It’s hard for consumers to fathom the contributions that AI has already made to businesses all over the globe. Yet the digital world that connects people makes the connection between us more prevalent. A higher connection between AI and fintech can help fight financial crime with ease. This will assist fintech to reach new heights.”

He notes that the collaboration rate between AI development companies and fintech services will rise high in Asia and Africa. However, algorithmic trading and Blockchain are becoming catalysts. Too. Research shows that few things have changed in the stock market. Investors are keen on adopting new methods. Algorithmic trading is one of them. Regulation barriers, however, are still stiff in some countries.

The banks’ challenge is how to make customers feel safe about entrusting their personal data to these technologies. Once this challenge is over, the fintech industry will move to the next heights.

For instance, after the success of Blockchain network infrastructure, IBM, Microsoft and others have intensified their interest in Blockchain. This may cut the security threats. Because of these catalysts, the banks are creating a powerful network. The banks are responding to a rapid development of the fintech industry. The banks are adopting time-tested technologies. The banks’ challenge is how to make customers feel safe about entrusting their personal data to these technologies. Once this challenge is over, the fintech industry will move to the next heights.

From this side

What about the catalysts?

Big mummy, the catalysts will propel the move. It will happen.

When?

It is a matter of time. We have left where we were pre-Covid-19. And like the metal hydroxide-organic framework, the catalysts will facilitate the next growth.

*Olaegbe (psalmsonolaegbe@gmail.com)

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Okay. Take this. Do you know why many smart young people seek connections – at shindigs, churches, burials – with celebrities and wealthy individuals? Innocently, you dish out your business card like cookies. The card has your name, Twitter handle, email and office address. Once a clever parasite finds you as a juicy connection, your personal details are traded. Then, the parasite vamooses into thin air. Goodbye.

Cyber thieves are here. They are everywhere.

In the twenty-first century, cyber threats and attacks have become sophisticated. The easiest is identity theft. That is when a stranger steals your personal details and uses your identity to swindle you. If you don’t understand how cyber thieves operate, you are already a victim. If you do, you are a victor. Cyber rats are closer to you than you can imagine. Cyber rats are at your door. Now. Check.

On the one hand

The Covid-19 pandemic has changed the landscape of cyber threats and attacks. For instance, to cushion the effect of the health crisis, the federal government distributed soothing materials to Nigerians. These materials came in the form of cash transfer. So, some Nigerians got loans. Others received grants. Yet, few received food items. Oludayo Tade, a communication consultant at Impact Elevator and Safeguard Specialist of the University of Ibadan in a research document, wrote that the Covid-19 palliative had been exploited by cybercriminals.

With the data from the Economic and Financial Crimes Commission, the Central Bank of Nigeria (CBN) and the Police, Tade discovered that the cybercriminals have developed similar schemes used by the government. To succeed, the fraudsters asked some Nigerians to supply their names, birthdate and bank account details in order to be eligible for the Covid-19 relief loan. The criminals said via sms that the loan will be transferred into their accounts. This is false.

Many Nigerians obeyed the call. Few did not. Through these fraudulent schemes many people have been swindled. It was after the fact that the victims realised they had been conned. Identity thieves are faceless. They are strangers. But they know you. They are lurking behind your door. Now. They are watching you. Like a lion lurking, they are waiting for you to sleep before they pounce.

On the other hand           

Cyber thieves are here. They are everywhere. For instance, a Masters’ degree student in a Moscow university narrated his story recently. To augment his stipends, he applied for a job.  The firm can use his excellent communication skills. During the interview, he discovered that the company is a duplicitous firm. It is not an insurance firm. It trains its staff on how to steal people’s identities. How to fleece their targets. An agent’s one goal is to extract valuable assets. Name. Age. Marital status. Employment number etc.

One of the training methods is imbibing the insurance world. How it works. Why do people buy policies? The whole gamut. To reach the targets, the firm has a crawler. It creeps through the internet. It amasses the targets. From Europe, America, Asia, Mexico, Bahamas, Aruba and other countries where insurance is mandatory. So, the core targets are millions of people who are policyholders. To reach them, call masking surfaced. The pseudo-insurance firm has a call masking technology.

For instance, a telephone call from the firm – in the city of Moscow – to a target in Washington DC will display Washington code. The target will perceive that the caller is in Washington. Likewise, a call to a target in the UK, has UK code. A call to Ukraine, Aruba, Anguilla or Antarctica has that country’s code. Do you get the drift? That is brilliant.

The firm employed thousands of callers. Like a call centre, they are dedicated to making calls. He told me that the call centre is a beehive. Why is this so? It creates belief. It erases doubt. It builds connections. It calms the target. Once a target calms, it is time to pounce. This is psychology. You know, all learning is state-dependent. What do I mean? To enhance memory and behaviour, state-dependent learning creates similar states of consciousness. For instance, if you learn in an environment of chaos, your chance of remembering what you have learned is higher if the same environment is created again.

Used by the Russian firm, the method pushes the prey to associate the call with protection, promise and possibility. This is how the firm operates. This is how it fleeces millions of targets. And it operates right at the city centre. It works in the heart of Vladimir Putin’s country. To maintain secrecy, all agents signed non-disclosure agreements.

If you don’t understand how cyber thieves operate, you are already a victim.

Hmm, how did this student get this information?

I have also signed a non-disclosure agreement, Bigmummy.

Did he accept the job offer?

That is another story for another day.

Meanwhile, some fintech firms have employed compliance systems to fight these identity thieves. They are fighting everything. They are fighting criminal transactions and cyber theft. Here is a roll of honour: France-based Bleckwen uses real time analytics software. Germany-based Hawk employs artificial intelligence. Veriff from Estonia serves 190 countries through its compliance processes. In Nigeria, there is no Fintech start up in that space yet. Why? Because you don’t know who is lurking behind the door.

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