FirstBank FinTech Summit 5.0

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trader made his first deposit 20 bags of silver arriving on camelback aren't you glad that we offer online banking today expanding across the west african sub-region and beyond our early presence made it possible for all hard-working africans to build great things so is it any wonder that not one but two first bankers have gone on to become nigeria's central banker we are intricately woven into the fabric of society supporting polo for over 100 years and pushing the limits of athletic performance rooted in tradition for constantly leaning forward into the future are you coming you first first bang [Music] first bank nigeria is west africa's premier bank we have a presence in six african countries offering diverse banking services to more than 32 million customers who speak 750 languages we offer international banking services in london united kingdom and paris france as well as corresponding banking services in china with an over 750 branch network we serve the needs of individuals and businesses across all 774 local governments in nigeria we have over 11 000 employees who can communicate seamlessly in each of nigeria's 250 languages and offer banking solutions tailored to local needs we are committed to growing our people and the communities in which we operate in 2020 we gave out 25 000 retail loans to pay school fees upgrade learning facilities in schools and help businesses stay afloat all in spite of the coffee 19 pandemic we have empowered 100 000 nigerians with extra income as first money agents all 100 000 first money agents at every nook and cranny of the nation were always on hand to serve our customers in 2020. we are investing in growth and technology and this is evident in our digital banking solutions as more than 60 million customers carry out transactions every day via our first mobile app our first online internet banking and across 894 other channels in 2020 we were open to our customers 24 hours a day and seven days a week via our always-on contact centers with our agents walking around the clock we resolved 50 000 customer complaints across all our call centers in 2020 with 2892 atms across the nation and 11 million cards individuals and businesses were given access to cash for successful transactions even at the height of the covet 19 pandemic we are very social with a community of over 4.2 million people across facebook instagram twitter linkedin and youtube we are continuously working to serve our customers better and to ensure that they have the best banking experience with first bank nigeria [Music] all right all right good morning good morning ladies and gentlemen from around the world wherever you are it is my pleasure to welcome you to the first bank fintech 5.0 summit brought to you by the premier bank first bank of nigeria this of course is going to be a great conversation around financial technology it is literally the hottest topic coming out of africa's largest economy as of right now the theme for today again from first bank 5.0 summit is open banking and it's derivative opportunities for the financial ecosystem it's a fantastic topic we've got a great set of panelists that are going to be talking to you about this yesterday so you folks out there should sit tight this is an interactive session it's an interactive session at the bottom of your screen there you will see a q a box put your questions in our keynote speakers are going to have interactive sessions you can put your question in your questions will be answered there's going to be lots of dialogue my name is rosa cirosis by the way rosa surgery glad to be with you all so um look just yet yesterday just 24 hours ago the central bank governor of nigeria was talking about how the fintech ecosystem has brought in about 500 million dollars just this year alone first bank with these summits annual summits has positioned itself at the forefront of the conversation about what fintech opportunities can come into nigeria and it's great to be here so once again we've got a great set of panelists that are going to be talking to you all about once again the theme open banking and it's derivative opportunities for the financial system so what is open banking the seamless connectivity that and all the opportunities that fintech are going to be bringing us here during this conversation so without further ado i am going to be calling upon uh the managing director and ceo of first bank but in 2019 i made this silly error of saying mr and somebody rushes out to the front of the state instead it's doctor doctor do it again and so i had to apologize and then reintroduce them so i'm going to get it right to there ladies and gentlemen without further ado i'm calling upon managing director and ceo dr adishala a digital to open up this fantastic event with this address uh good morning sir the floor is yours good morning and um good morning to all the distinguished panelists and my colleagues and all other invitees i'm excited it is the fifth edition of fostband fintech summit um let me on behalf of our board of directors and my colleagues on the bank's leadership team welcome all the panelists the other invitees and my colleagues to the fifth edition of our fintech summit this summit as you know is organized by a bank to create a global platform for conversations around the future of innovation in the financial services sector specifically in the financial technology space and our objective is to contribute to the rapid evolution and if you choose to call it revolution in the banking and financial services uh service delivery and for this year the team of this year is open banking and it's a derivative opportunities in the financial ecosystem which we believe promises to be very exciting and engaged especially with the caliber of thought leadership and we've successfully put together here today we believe this will give us a very good platform to hear from the leading authorities in this area because open data cloud technology artificial intelligence the way they all play together to create the right environment for innovation or revolution is becoming very important for us open banking today demonstrate the practical features of these variables that have covered presenting remarkable potentials that can only define product development customer experience and overall value creation within the financial services system with significant multiplier effects not just for players but even for consumers of financial services products the regulatory framework for open banking in nigeria as issued by the central bank on the rules and premises which financial data sharing can take place across the financial system and the national information technology development agencies data protection regulations are indications of the future of regulation around the open banking we believe there's enough space for continuous innovation and for us as an economy to rapidly embrace this with the view to materially upgrading the quality of financial services in nigeria as an institution that is over 127 years old herban will have transferred series of industry transformation and will continue to play a leading role in furthering the conversations on refining the ability frameworks and shaping the industry not just on open banking but for all contemporary issues that we impact our industry we will also continue to demonstrate our support for startups and innovators in this fintech space by providing them with relevant data support and infrastructure to enable them to scale appropriately every step we take continue to be geared towards strategically positioning our institution as a breach head and the reference point point for fintech and financial services industry providers across the continent given our presence in at least six other african locations potentially that will go up as we continue to lead the change towards realizing the future of banking i am particularly very optimistic that the financial services industry will benefit from the conversations at today's summit i'm also very positive that this platform will continue to come up with innovative solutions to further drive growth and deepen financial inclusion just as we're exploring errant opportunities to go for banking with other experts across the industry like i said at the beginning we are particularly excited with the caliber of speakers that we have here today and i want again want to thank them for accepting to be here with us and for the audience and other viewers all over the world we think this is going to be a great platform where we can share ideas thank you and we look forward to a very exciting day thank you so much once again to dr adishola uh davidson the managing director and ceo of first bank of engineering of course you heard him right there in his opening call in his address where he said that first bank is going to be connecting with smes in the fintech space in order for them to scale so first banks sme connect you definitely want to take advantage of that in order to assist uh with uh getting fintech companies at the scale across the country so again thank you so much to managing director and ceo dr aditya la davidson i'm seeing questions already this is great i'm seeing questions already uh so again it's an interactive forum popping your questions in the q a box there at the bottom of your screen there's also going to be a brochure that's going to be available um after the event nice colorful brochure if you put in your email address when you signed up for this event you'll get that uh so that will be coming to you after the event is over all right we're getting into the meat and bones um of uh this event now i'm going to introduce uh our keynote speaker uh professor um he is the lead faculty of uh takeda institute uh he invented and patented a robotic system which the united states government and acquired assignee rights dr kikway holds two doctoral and four master's degrees including a phd in engineering from john hopkins university you will know john hopkins university because they were at the forefront of tracking the amount of uh covered infections across the world everybody was going to john hopkins university's website so yeah he's got a phd in engineering from john hopkins university usa that's a doctor a professor on the bc a cakeway he earned an undergraduate degree from frederick university of technology or weary where he graduated as his classes best student uh while in analog devices corporation he co-designed an accelera accelerometer for the iphone uh he's a recipient of the igi global book of the year ibm world economic forum young global leader professor keiko has held professorships in carnegie mellon university uh babcock university and served in united states national science foundation committee uh south african press call him a doctor of innovation and that's why we have him here um for helping organizations on the mechanics of business innovation strategy and growth since 2009 the chairman of he's also the chairman of a fast micro group which controls many startups and entities and has been writing in the harvard business review as well he was recognized by the guardian as one of 60 nigerians making nigerian lives a matter on nigerian 60th independence day back in october 2020. uh professor akway it is an absolute pleasure to have you at this five fintech 5.0 summit by first bank and we would love to get you on your way with your keynotes address the floor is yours sir thank you for being here okay thank you so much uh distinguished ladies and gentlemen it's quite a privilege and honor to have this opportunity of coming to this altar to have the conversation on the mechanics of market system mdbc okay but i will be sharing my slide now and then we will get started okay let me just that's just a minute okay great okay so a conversation today is on open banking the grand unification of application utility age essentially we'll be looking at some of the most promising elements of the dawn of the open banking it's a mechanics where banks are asked to share their customer data through a peers with third-party companies so that they can help to drive innovation at a very critical level as we go through this conversation i will share what i do believe could become huge opportunities that we can leverage as a people through the banking ordinance in our country so that we can drive prosperity and bring so many people into the promise that we expect them to be but for us to go there let me take you back to your secondary school days i had a very good one in secondary school i would take you back to the old debates with some of the finest greek philosophers we are asking and trying to answer one of the most important questions of the time what is the universe made up of what is the accents of our universe what is the component upon which everything we do on this end is built upon tells said that the world is made up of water hydratedly to say that the world is made of fire but i like what pythagoras the god that gave was a protagonist theory he postulated that the word is nothing but numbers in other words if the word is nothing but numbers it means that the business of humanity is nothing but the business of numbers if you understand the numbers of your customer you become a very better banker if you understand the numbers around human systems you become a very better doctor if you understand the numbers around anything you do on earth you have the possibility of doing nothing better so if the word is not in that numbers the implication of that is that any time in any sector or in any industrial system that we have a better understanding of the numbers around that nasus we are going to do that job very well so what are we having to what do we have to do here it simply means that the quest to getting better in any sector or any industry will be how to build better data systems so that we can understand the numbers around the particular industry so but for us to do that let me take you back to the mission of funds why do we really have companies why do we have first bank of nigeria why do we need to have companies like amazon google why do we need to have company it turns out that the reason why we need to have companies because market systems are inherently impacts if market systems are inherently imperfect it means there needs to be a perturbation that make it possible for demand and supply to come into perfectly flippant points because of information as symmetry the demand not something the supply doesn't know the supply nuts until the demand doesn't know somebody has to bring them together it's anywhere in that person has brought demand and supply into this equilibrium point that is when transaction can take place and let's assume that individually has just landed in lagos and i'm very very hungry let's assume i don't have a family member i can eat there is no restaurant the city of lakes the only option available for me will begin is to go to every door in lagos knocking at the door i said please do you have food to sell you say i don't have food i called it second person do you have food to say i don't have food to sell but at the same time i'm looking for someone who has food to sell there is also the possibility that somebody has food but i cannot get to that particular house so what has happened here is that because of information asymmetry there is a broken down system he has information i don't have and i have information he does not have and because we cannot have a market relationship so what happens a company wakes up a young lady wakes up in the morning and say i am going to start a company and that company is called a restaurant and when i start at restaurants any time bbc is hungry he doesn't need to be knocking at everything leaks what he would just do is that go to that company called restaurants and when he goes to that restaurant i am going to serve him food and then in the bc will compensate me by paying me money which is the cost that individual has imposed in the system for fixing a friction which has existed in the market which means whenever the bc is hungry he can go to a company to eat food so across market ordinances sectors companies do one thing they fix frictions which exist between demand which which is for customers and the ability to fix that friction can go back to the postulation by particulars if that customer knows me better if that customer understands my needs if that customer can get into the numbers of the customers that company can deliver better services and the same thing happens when you go to bank somebody has one thousand error in lagos he doesn't know what to do with that there's a one millionaire at the same time he's looking for somebody he can give that money at 10 interest rates he looks all over his community he can't find that but at the same time he's looking for somebody to lend that money another person is also looking for somebody he can borrow money from because of information in symmetry they cannot have a business relationship first bank many many decades ago woke up i said we are going to start a ban so that the man who has money we bring it to first bank nigeria and then the person who needs money to expand his portrait business will come to borrow that money from us and by bringing that first bank has fixed a market friction which has existed between the man who has money and the man who needed money these constructs runs across market systems and what one thing that we have identified is this the capacity to fix this friction correlates with the ability for us to understand the numbers around these two customers in other words the more we understand the numbers going back to the postulation of protagonists the better we can do business and how are you going to do those things you have to imbue the capabilities capabilities are now things that separate you from other companies things that make you better things that qualify you to become that company who can bring this demand and bring the supply into a valid private point and when you do that you begin to deliver business services at a higher level we are going to see how the request for open banking takes back to that postulation by pythagoras that the more we understand the numbers around our environment around our market system the better we can deliver customers at a very good end i've always said these things that companies that serve the needs of customers will never be great that's what they have told us in economics the customers needs are things they already know they know they need the companies have to start beyond the needs of customers to the expectations and the perceptions of customers and i'll take you back to 1990s when we have some of the new generation banks in nigeria coming up the banks are being owed by having the needs of customers that you can put your money in one branch of a bank and when you move to another city in nigeria you will not have access to that money you have banking with a bank in lagos and you just travel to canada and you run out of cash and the same branch is sitting before you they say no you can't have access to your money you have to go back to lagos because that is the only place you can take this money but you have already met the needs of that particular customer by offering the banking services that you have not made the expectation of that customer great companies go beyond these expectations to the perceptions of customers perceptions of customers are giving them things most times they never even expected that companies can give imagine the experiences of customers when it was not possible that somebody can walk into a bank in lagos and open an account and he goes to kanu he goes to umayya he goes to oshobo and he or she can actually operate the same bank account irrespective of the geographical location of the branch of the bank that was taking customers to the level of perception and when you do that what happens is typical you move those customers from becoming customers into fans blessed is that company whose customers are fans because they become our hostels to help that company pursue its mission in the market postulating that this is the best place to do business and moving into that perception innovation comes by understanding the data of your customers there is no way you can build a great brand there is no way you can build a great company if you do not understand the customers that surround that particular brand open banking offers us the promise to have a better insight to have a consolidated insight about what the future of our customers and if we can do that making it possible that we can share data across different nations we are going to start these customers at a better level the promise is this the financial systems in nigeria across africa and across the world will become the operating system that run our work just like we have the computer system we have the firm where they have application utilities the operating systems of an economic system with financial system because at the end of everything people want to be paid no matter whatever you are doing if you are a banker your job is to make sure that the doctor gets paid when the services are offered the bricklayer gets paid the carpenter gets paid the engineers get paid so financial services becomes the operating system that runs our economic architecture because the compensation everything we do in market system is nothing but revenue revenue is what the market pays you compensates you for the frictions that you have overcome in elementary physics friction is a force there is only one thing that can overcome that force in business it's a product of service because the needs of customers are frictions that customers have and the only way you can overcome that friction is by giving that customer a service giving that customer a product and when that product can meet and overcome that vision you have solved a very great problem for that customer and what does the customer do the customer says i'm gonna pay you and that ability to pay you is a revenue that you've accumulated for offering that service to that customer financial services becomes the operating system to make for that efficient utilization of factors of production making it possible that we can organize all the elemental constructs for the manufacturing and the production of those producers so when we have a financial service that works we have an economic architecture that can actually form in a nation and these things are evident because the elemental construct is what is knowledge we need to build the knowledge systems of the future and we also need to have the entrepreneurial capitalist mindset moving into the domain of having young people that can take opportunities that are coming before us empires have always been deals with knowledge go back to the old time of pharaohs go back to the great moment of the grief and great philosophers he said that in the time of moses that he came appear before the israelites they were true because he has studied on the field it turns out at the time of moses egypt had the best educational system the best astrologers they had the best thinkers and egypt ruled and brought the world to the world civilization and if you go back to the time of the greeks as they were building aristotle his real clintons they were postulating all those countries that we have come to know about they also build the shipping lines in the mediterranean so if you look at the elements the non-net systems that we can acquire through open banking ordinance is not just going to affect the financial services the open banking ordinance is going to have the capability to gain parts if we improve our mortgage system isn't going to improve a real estate business it's also going to prove so many things but for that to happen now we have to have high ideas people that can actually take that first move and say we are going to build the apis of the future i'm coming coming back to that and those things have to be viewed for numbers when you call data today it's nothing but numbers when you have that number and when you have that data system shared and made available across ecosystems you begin the phase of open banking in as much as we have bodied open banking is actually oppo financial services because what is critical here is that most everything we do in the market system banks are behind because at the end of the day when you open up a business you need a bank account and then imagine the construct where through apis different companies in different sectors can actually have access to the customers and if we do that it means that we have the capacity to reduce the frictions across the nation so how we can actually deal and offer services to these customers and it's going to be a great moment for a nation like nigeria because if you look across most elements you see that we have underperformed we are a gdp of less than 500 billion for 210 million people i do believe that we have an optimality of moving our gdp to 3 trillion and if we do that it means that everything and every opportunity we have in nigeria today will will actually be increasing by a factor of seats our agriculture needs an element of bank because we need to know the customers it's only when we know the customer that is also the time that we can offer them credit services that is also the time that we can offer them things they need for them to grow agricultural centers our healthcare system remains extremely primitive because we don't understand the people we serve it turns out that the banking system has innovated for many many decades in this nation it remains the most innovative sector in the country a pioneer the banking deviant system and the vivian has become the standard for us to actually know who is who in the country government are not to depend on divi and for us to actually run our system you go into educational assets they're going to the technology sector we count what investment the banks have made we will not have the fintech space so it's a very critical thing for us to say how can we use new technology ordinances to expand the hypotheses that this country cannot just be a place where we thought that it's actually going to be a country where we can heed let's say three trillion maybe by 2030 or even at worse of 2035 there is only one thing i know that if we do in this country progress prosperity will be shared in abundance across rural communities if every land in nigeria is given velocity the man who owes 100 acres of land can now say i have got properties and those properties are captured in the balance sheet of banks because i'm banking first bank of nigeria and the first bank of nigeria knows that i a hundred acres of land and with that hundred acres of plant i can have access to credits that i can pay school fees for my children i can also take my wife when she's to the hospital things begin to happen it means that the opportunities for the future of banking for the future of market system we can actually see them in iraq but because today those things do not happen it means we see our rural citizens as people that don't have needs how can you call a man who has hundred cows in poor man how can you call a man who has one thousand hectares of land performance today in nigeria we do that because those access are outside the form asset but we can change those things through the promises of open banking by unifying all the major economy all the major sectors in our nation bringing them into the construct of the banking system so that even the innovators in different sectors can actually have assets that data and using that we can bring them to visibility so that we can push them to where they need to be what is happening today in nigeria if you go through the histories of the right places like united states you see that it's typical i looked through the companies that were very very big in america in 1917. you can see that it's still companies we are the most powerful companies in america and then 50 years later in 1967 you begin to see infrastructure companies uh technology infrastructure company at t ibm they now started becoming the companies and then if you now come now just in our time here apple uh facebook amazon and google they call it alphabet these are now the knowledge companies of of today so there is this translation that you began with building and then you move into infrastructure then you move into the knowledge system in terms it turns out that there are many critical similarities that you can also see when you look at it and and if you look into here in nigeria the left my side these are the most dominant companies in the regional stock exchange these are the leading companies i think most of them there are more than one trillion around in their market car you see that we are still in the phase of building critical infrastructure like cement company gua and bangkok cement are the big companies we have in the nation and then you now see the infrastructure companies that ntn and and and airtel africa has also been there then unanimous nest which means that we are still in the business of how do we eat the right food how do we feed our cities then in america by the right hand side you see that they now have companies that are actually at the knowledge face that's where you see these are the largest companies they have what am i trying to draw here what you can see here is that nigeria has actually brought together the evolutionary phase of american companies 1917 to 1967 together because we now have companies like mtn also imagine of and i am hoping and i am believing that by 2030 some of the leading companies in nigeria they may not necessarily believe that the nigerian stockade will become to become companies of of like the knowledge companies that we have so that is the promise we have and that is the possibility of the future and that is also the reason why open banking offers us a very very important tool it makes it possible for you to share customer data as a bank with trusted third parties through what they call apis apis are basically technology systems that you can now share somebody's data without any kind of violation of privacy without any kind of risk so for retail customers many of us are going to the bank to do business it gives you the opportunity that your data can be aggregated and with the analytic systems you can have a better insight of what is happening within your your banking experience so you can go into your your wallet facebook app you can have a better insight because everything has been brought together in one place and you know this that is never going to be a catalytic evolution in nigeria's economic architecture without a credit system a credit system is needed and urgently needed for us to have the opportunity of actually expanding our economy it's just not a question that i need to have money before i can build a house it's not just a question that i need to have hundred percent of the money before i can buy a car it's not just a question that i need to even have money before i buy a laptop in america today where i'm speaking from you can buy a car and pay over seven years you can buy a house and pay over 35 feet but people do magic in place like nigeria where they actually have to pay hundred percent for them to have a house it's not going to happen because the way it is today a lot of our citizens are caught out of the system of owning a house of owning properties because they cannot afford to pay at once i do believe that open banking through that data aggregation our analytics system can also bring a national credit architecture that will make it possible for us to actually rise not just few of us but everyone to rise imagine what it means that every person with the bvn in nigeria will have a credit score i understand that there are so many fintechs that are trying to view disparate credit system but those things are not necessarily going to work we need a nigerian banking ordinance to be to have a credit architecture type of people's bvn so that you don't even need to make effort it becomes a natural way of doing things and if you do that within five years we can see people having credit system that they can actually begin to rise in our economy system and of course the smes will benefit integrated person and accounting system protocol will come because you can have more visibility in what is happening in your business and you can have a better understanding of your cash flow and the business because at that data is flowing going in and going out you can have everything in one place it's going to be an amazing experience if we can actually get it done i understand there are so many people that will say why do i have to share my customer data with my potential competitors i also want to tell them about your predecessor system because what is the ui criticism people empower others so that the end of the day the society becomes better and if you have the same mind say that i am a very deep band i can share my customer data with fintechs with real tech with other sectoral participants at the end of the day we can grow the pie of the nigerian economy and if we grow the power of the nigerian economy i'm going to capture more value and great things will happen in that country there is always something that i'm fascinated living here in america intelligent lender you login into paypal if you have a paypal margin account one thing depending on your position the work you're doing transaction paypal shows you a button please accept you have 50 000 working capital credits you don't even need to apply all you just need to do is accept and once you click that button within the next 24 hours paypal will release 50 000 then if you go to some other banks if you are using a copyrighted bank here you log in they say oh you qualify for line of trade you know what i'm trying to say here is that the customer does not even need to apply for these loans rather the system automatically uses the data systems within your accounts to tell you that you can be qualified for 50 000 it's just like going into an atm and you're trying to withdraw let's say three thousand naira and the atm says um you have three thousand you can withdraw but we can also give you a loan of five thousand naira and the atheist accepts that you're taking this like this this credits overdraft of you just accept it now the atm automatically will process that additional money and and you take you know beautiful planes of sokoto to the grassland of yogi from the ram foreign to the plateaus of jewish boys and guests men and women they're looking not just open banking but they're looking for opportunity and share prosperity and individual for that will come through the opportunities of openbanking and the promises i believe that nigerians will believe thank you so much ladies and gentlemen for the opportunity fantastic stuff absolutely this this is why first bank reaches uh up to professor under bc because he's a bold visionary and he puts forward incredible ideas practical ideas that inspire you know and spark innovation professor gagwe thank you so much uh for that uh for that address you spoke about so much and you sparked the debates in the uh in the chat room the chat box also the q and a's a whole bunch of questions because i quickly want to ask you a a question here uh before we get to our next weekend there's a lot of questions on privacy and security um for instance let me just take this one here one of our questions here great discussion professor under bc i've got a question though in as much as uh nothing is really secure in terms of open banking how are the is the data of customers secured if they're going to be shared to aid data learning everyone wants to be assured some form of privacy i may not want my financial data to be shared with anyone except that i give permission for it so and there's a whole bunch of other questions uh professor about privacy and security with respect to open banking uh would you like to address that please yeah i think of course privacy and security everyone was of necessity be concerned but interestingly there are many cases you have many case studies even in the united kingdom this is not new in u.s there is a start of call pledge instead what player does that if you are trying to get a loan from a fintech if you use plate api you you're logging in the ai remember human beings are not necessarily the people that will be doing all these things so you're actually using computer codes so a computer code wants to check if this customer really ready for a loan so once you put in your information that ai system goes into your bank account in bank accounting quality first bank and he scans the bank accounts and says oh this person is not good for a loan so human beings are not necessarily the ones that will be looking at this and interestingly if you use the open banking api system is even less invasive than the current model we are using today where you have to print your bank statement send it to one company before they they will look at audio entries and transactions before they are proven let's in united states here is mentions that we actually do that and the machine it takes less than two seconds to make that decision so which one is more secure printing your physical bank statement sending it and uploading it in a server of a fintech you don't know who is working there and human being will manually look at that data or using a terminal evolution technology where you give the api the opportunity to have access to your bank account in facebook because there is already a protocol that makes that possible yeah yeah it takes a second so aps systems are actually more secure they actually give you better privacy because machines are making the decisions and not human systems and i think i'll prefer it than sending any human being my physical bank statement thank you great stuff one more quick question for you uh professor quickly um this is more specific to nigeria this is from tairu and for all our viewers please continue to our participants continue to send in your your questions there at the bottom of the box it says uh professor quick quick great presentation i love your work your opinions on open banking are flawless but could this be implemented in nigeria where there doesn't seem to be coordination in data uh collection uh professor yes i think nigeria has two different elements you have the banking sector and others and if you look at the history of the banks and what they have done in short and confidently when i was still in a secondary school i said i'm going to work in the bank because i felt that was actually a place where they were doing really cool stuff they were able to do the uss they were able to do the needs they were able to do the bvn what are the politicians who are working in abuja or not so if the banks are going to leave this believe that they will do it the question i have though is where the banks think is actually a good business and that is the reason why i pull that smiling cough how can the banks capture value instead of empowering other members of the community because there is that propensity that if the banks share their customer data people make tons of money from banks and banks not capital value and that is really the risk but if the banks believe that they want to do this and they are not worried about losing control because people can accept their customer data and now go and view businesses on those customers tell them i think there is really no risk they can do that it's not a rocket science but they have to call me that they want to do it fantastic stuff uh professor on the bc quiz so many other questions we got to move on because of time thank you so much sir all right i want to introduce oh actually this is actually pretty important um when uh mdc or doctor addison mentioned that first bank wants to you know partner with smes to help them scale we've got a lot of questions about where that can happen i mentioned sme connect so if you're an sme you want to partner with with first bank and with your ideas and so on sme connect.firstbanknigeria.com sme connect dot first bank nigeria dot com all right let's get to our next speaker again our big thanks to uh professor bc but he's gonna still stick around because there's a panel discussion coming up next presentation um is going to be on global perspectives to open banking it's from ankit sharma who's a director of strategy at pricewaterhousecoopers anki sharma of course um is based out of mexico he's focused on providing strategic advice to finance issues related to go to market strategies digital transformation and innovation his work has spanned the full range of the financial services value chain for driving value creation from seeking profitability growth to optimizing operating models having started his career in consulting in london ankit has worked with multiple financial institutions retail banks insurance firms investment banks across europe latin america middle east north america so it's my pleasure to welcome mr ankit the floor is yours please go right ahead and ladies and gentlemen our participants remember keep your questions coming uh we'll have uh questions uh you'll take questions after the presentation go ahead thank you thanks thanks it's a pleasure to be here in this session i'm really honored um uh to be uh to be in the session speaking about the global perspectives of open banking um can i have the slides please and then we can kick off keep up my my session well while my style slides get uploaded um in my um in my talk i want to focus on uh the global use cases of open banking and draw parallels uh for first bank but before i go into this i want to set the scene and define what open banking is um and then and then go into the global global use cases so if you can move the next slide please the next one yes so on this specific slide uh as we can see open banking uh refers to the opening up of internal bank data and processes to external parties uh why are digital channels these external parties as professor was mentioning as well they could be banks or authorized third parties who are acting on behalf of the customers so as we can see on this slide without open banking in this day and age there is a one-to-one relationship of the customers with the bank for different use cases for example for a customer to know their account information transaction history or for payment initiation as well so in short these user connections are straight dedicated and closed they are one-to-one from the customer to the bank but then in the world of open banking there is a collaboration model which allows firms to share data and services through apis and this collaboration is not only between financial services firms but even with non-financial services forms as well and i'll go into this a bit later in my talk so in summary through open banking as you can see data is being shared through apis so basically this means that the way we view data ownership changes completely currently it is the banks who own the data of their customers but through open banking this whole ownership structure is being inverted it is a customer who owns the data it is a customer who decides which entities can access their data and for what objectives next slide please so in this context now i want to give you some examples of how open banking is being implemented in the world these examples are from europe but this would give you an idea of what potential use cases nigeria can see in the days and years to come the first example is of a personal finance manager for example for a retail banking client a personal finance manager aggregates information from different bank accounts different insurance accounts in order to offer them a unique view of their finances for example a customer may have three different accounts in three banks two and two with two different insurance companies the personal finance manager will classify all the expenses and all the transactions automatically so that this client can know his or her financial position in real time in a visual and an easy to understand manner in the day in this day and age a customer would need to go into three apps uh of three different banks to understand what his current financial position is but with pfm this uh this problem is being solved there are multiple examples in the world of pfms in spain there is fintonic they have also entered the latin american market now in u.s there is a pfm well established mint in scandinavia and europe menega is another great example of a pfm as well and in the countries where open banking has been implemented uh we have seen that this is potentially the first use case that comes up uh comes up and the banks are being and that the banks are developing the second one uh the second example is related to credit scoring professor in his uh keynote mentioned that in that in nigeria credit is a is an issue where a lot of customers are not being given credit even though they they have some assets right land they have uh cattle but they are not formal so credit scoring is is a issue that is being resolved uh through open banking here i give you uh here i'll give you an example of a fintech that's working in the commercial banking space ivoca is a fintech in the uk and their vision is that for an sme small and medium enterprise they should get credit in a seamless seamless way and it should be as easy as booking an air ticket what they do is they have connected uh their uh they're connected with the three biggest banks in the uk and if sme goes to them for a loan the sme can provide five years of transaction history in seconds uh to this uh fintech when they're applying for a credit facility so through the application of open banking the operational cost and time which iwoka was taking for underwriting has been reduced massively and customers are getting their credit decisions much faster it is a win-win for both the third example is related to payments here again an example from the uk natwest is a big bank in the uk that's teamed up with car phone warehouse that's a company that sells cell phones so this alliance helps customers pay their monthly payments directly through their bank account without using their visa or mastercard so customers using their car phone warehouse app are presented with a button where they click on it they go to the bank app and automatically they can make the payment in a much more seamless manner so for the customers this experience is much more seamless and faster for car phone warehouse it saves them the transaction fees they were paying visa and mastercard and also the settlement is faster so these are the three examples i wanted to talk about and once open banking gets established in the nigerian market i'm sure it won't be long for us to see these examples in the nigerian market as well next slide please the one before that yes so on this slide specifically i want to talk about different models of open banking that banks can follow these models are oriented around two dimensions product focus and customer relationship focus i will not go into the details of these models in this session but there are three points i want to highlight and these would be points to think about one that these models are not entirely new models what open banking is offering is a way that is easier than before for banks to decide which models work for them and then implement it the second one for any financial services company like first bank they need to identify which model would be would work best for them and this can be based on each financial product they are offering to their customers for example for a specific bank a bank can choose to own the entire value chain and be in the traditional integrated quadrant or for current accounts they can choose to be an infrastructure player third point that traditional banks most of them in globally right now would fall within the traditional integrated quadrant where they control the entire value chain i know this slide might have raised a few questions and in fact this was the uh this was one of the aims to present this slide uh and uh i want to move on to the next slide to talk about the rules of the uh how banks can be ready for open banking but if there are any questions related to what these models mean happy to uh take these questions during uh during the q a session so next slide please so on this uh the one before that yeah so on this specific slide uh i want to talk about what banks can do to be ready for the for open banking and what banks need to develop um in order to uh in order to set their goals and vision that aligns with their operating capacities and strategic objectives here i have three recommendations one once the rules of open banking and the rules of the game are being developed banks must start to think about clarifying strategic opportunities and identifying the path pathways for growth here different areas of banks which include strategy transformation product marketing i.t and operations they must come together and think about how bank can compete in the long term in the open banking era and once this view is finalized banks must start to decide which capabilities and which business models and which partners they need to work with in order to bring this vision into reality second banks need to work on their technology component banks must set up their date digital and data engine max must define the architecture of their core api libraries and this can be done the way it's being done in the us which is industry-wide they've decided what architecture they're going to are going to use or the way it's being done in the uk europe and other countries of latin america where it's purely regulatory driven the third important aspect is strengthening of security and governance mechanisms as one of the questions was asked to the professor related to uh customer privacy uh data governance security this is a very important aspect so on this banks must start thinking about how they can strengthen their security and governance mechanisms and also must develop an awareness program for their customers to know the benefits of open banking so that customers start accepting and using the open banking features that would be available to them in the times to come with this um i will end and happy to answer any questions thank you very much great stuff thank you so much ankit sharma again director at uh strategy at uh pwc thank you so much a great great uh presentation there that last slide um i did want to touch on that last slide you just spoke of you talked about strategic opportunities and pathways for growth for banks i want to marry that with the prior slides that on banking models product focused or customer focus and kids if we talk about strategic opportunities and pathways for growth for banks is it an either or situation for product focus or customer focus models or case can use can a balance be strike yeah on this there are there are multiple examples in the world right now uh which we are seeing of different banks most of the banks have decided on a combination of these two so it's not a choice between one or the other i'll give you an example uh from a customer relationship focus it's it basically means that the bank is owning the relationship with the customer or and the entire product or the infrastructure is being offered by a different player to give an example right now there's a lot of talk of amazon entering the financial services market google entering the financial services market there what we what we are seeing is the customer relationship layer is being offered by amazon or google which are not banks per se but what they are doing is they are partnering with a bank that is offering them the underwriting capabilities that is offering them the regulatory oversight that they need that's offering them the it expertise that they need as well so uh for example apple uh another example that comes to mind they partner with goldman sachs to provide the loans in the us and in europe that's a that's an example where goldman sachs decided to uh be the product uh product player and offer the customer relationship to uh to apple but on the other hand we are seeing other examples as well where banks are trying are aiming to control the entire value chain for example for a bank like first bank where you a first bank would own the entire value chain right right from customer relationship up to the back end in your operations there's no right or wrong answer it depends on where uh where you see the value uh of you know adding adding you know becoming profitable being uh and what what are the customers want as well and on the maturity of the market right i believe it could be a combination of all of these four models depending on the products thank you so much for explaining that thank you very much once again ankit sharma really really appreciates um your insights and that great presentation all right the party continues ladies and gentlemen keep your comments and questions in the q and a box remember you're going to get a brochure you're also going to get all these slides um also you know keep stay stay in tune because it gets even better um we now have a panel session that is going to be handled that is going to be run directly by professor olayinka david west let me tell you about her professor david west is a professor of information systems with almost three decades of experience in the i.t and financial services industry she is a passionate advocate for digital transformation and inclusive finance with her research and practice engagements involving policy and strategic management interventions towards digitally transformed businesses and societies professor david west is the associate dean at the lagos business school lbs premier business school in nigeria and sits on the schools management board she leads the sustainable and digital financial services initiative a research and advocacy initiative dedicated to enhancing financial inclusion in nigeria which is very important has been dominating conversations for years she has an expert expert certifications in financial inclusion policy and digital money in and is a governing council member of the fintech association of nigeria and a member of the african women in finance and payments she's a certified information system auditor certified in the governance of enterprise i.t and academic advocates to the information systems audits and control association she's also a qualified practitioner of the skills framework for the information age professor david west it is a pleasure to have you take it away the floor is all yours thank you very much richardson good morning ladies and gentlemen welcome to fintech 5.0 and i think this is really a novel achievement of first bank having participated i think in the first fintech 1.0 event a couple of years ago so we have introductions of uh professor aquarique and keith and i'll just briefly introduce my other panelists and the first is representing the central bank of nigeria because we can't be talking about open banking without talking about the regulatory side of it and we have the director of the payment systems management department mr musai tokajimo represented by mr ulubukong me who is here with us welcome mr akimi and then we also have on the panel with us the executive director of operations and i t at the nigerian interbank settlement system which again as you know is part of the plumbing infrastructure for our banking system we have mr aminu maida welcome aminu and then we have one of our fintechs who works in this space that which called one pipe and mr adelie who calls himself the chief plumber and i'm sure he'll explain that to you in a bit more detail hi and welcome to this uh conversation and then last but not the least we have a chief strategy officer at first bank on chief strategy and transformation officer at first bank my namesake mr elian cassidy welcome to this conversation and he'll be giving us the strategic behind-the-scenes look of what's under the hood within the first bank environment and i'm sure a lot of you are curious as to see what's under the hood with first bank as we go into this conversation so i'm still waiting for professor cakeway to turn on his video and join us here but i think one of the things i'll put on the table now is how do we get more women in these conversations right because right now it's almost as you know they normally say blessed are they amongst women but it's not that it's not the case in this uh conversation so i'll put that on the table now ladies and gentlemen please let's start the conversation and um i would expect your comments and questions and feedback as we proceed so i'm going to jump right in and i'll start with you mr kim with me because i think that we've we've heard about the regulation and when we talk about open banking we've looked at the innovation side and the customer perception side which is pulling us in one direction but also on the regulatory side we have the regulations not just from the banking industry but also even the data protection side in terms of consumer protection how do we ensure privacy and security of consumer data how do we build consumer awareness in our environment knowing that we're trying to also ensure that consumers know what they're and what they're providing to their customers and then how do we also ensure that we have the right infrastructure and ecosystem to start up with so i'm going to start with you mr kim and let's start and say the regulations right and some of the questions we were also pulling questions that we had we received at the registration at the time of registration to give us a guide as to how this conversation will go so we have our regulation the open banking guidelines that we've already the cbn has implemented can you just give us some more insights into how the guidelines are going to be operationalized what will the registry look like and who is going to be licensed as a as who can be licensed and who will be licensed under those guidelines thank you very much uh prof um it's a pleasure being on the panel with you as usual um how quickly i i think you've mentioned the fact that i'm representing the director of event system management department of the central bank mr musa gmo uh thank you for your question first is to say that the framework simply tries to get everyone in the industry talking as to how we intend to eventually have an open banking regime the framework looks specifically around the risk management environment that we need to build uh in ensuring that when we eventually go through blast open banking regime we take care of the main concerns of customers which has already been seen on this platform that a number of questions have been coming up around how do you ensure that customers are comfortable within the new regime so one of the items on the framework has to do with the open banking registry which you rightly mentioned the current framework has already indicated that the bank will be engaging the industry stakeholders within the industry to come up with defined guidelines on how a number of the provisions within the framework will be translated or into operations and one of those core aspects is the open banking registry which will bring transparency uh to the entire regime and ensure that customers can look up and know who they are dealing with in order be to be comfortable to deal with um those who are likely to play within that regime uh in addition to that the specifics as to how um stakeholders or players will come into the registry will be defined along with the guidelines that will come up subsequently uh i'll put it i'll leave it at that for now and uh thank you very much thank you very much mr kim so what you're saying is that there's going to be some element of co-creation and the central bank is going to do this alongside the ecosystem and ensure that we have guidelines and frameworks that work for the context of what we're trying to achieve in nigeria but the bigger picture is common and shared in terms of the risk-based environment that we need to operate and how do we bring participants and actors together to speak to one another in this space great thank you so as we let me let me come to you i mean you are looking at the plumbing side of the open banking system now infrastructure is one of the critical things and um what we see here is that yes we have some fundamental infrastructure but then how do we now build the right infrastructure for this open banking environment how do we ensure that we have the right security that have the right sharing and sharing rights and requirements that would ensure that safety protection previously are maintained go ahead amina okay thank you very much uh good afternoon once again i'm glad to be here this is my uh second um fintech uh summit with uh the first bank um it's it it really is uh an interesting one because um i'll just start by saying that we need to um first of all consider who are we building this infrastructure for and what kind of um uh what are the expectations now um i think i've heard some of the previous speakers talk about where uh whether players want to control the entire value chain or whether they want to you know just maintain part of the value chain i think for the people who are going to really make this a success which are the agile and nimble uh fintechs the more you know modern um technology companies i think it's very very important that we provide an infrastructure that is suitable for them and i think if you take that into uh consideration um you know maybe some might agree some might not agree i think it's going to be a an environment whereby for the success everybody needs to take a space within the value chain so that we do what we are best at doing and allow the ones who are going to deliver that experience um to basically uh deliver it so of course the banks are going to be there you could almost say that the sort of bottom of the chain and now the question is how far up the chain will they go ourselves at nibs um we will i hope maintain our uh traditional uh uh place within the value chain as an aggregator um but now the question of aggregator of what um several um uh points have been raised around security around consent and i think this is where uh nibs is going to play critical role i've seen the some of the draft standards um i mean anybody can speculate and say that the vivian is going to play a critical role so when it comes to consent management for example i mean we can even do better than what eu and other clients have done because even though vivian was a necessity of our scenario it has actually helped us leapfrog um in a lot of ways and i think open banking is another um it's going to be another scenario where we're going to see that because of the availability of bvn some of the challenges you've seen in other clients we're not going to see them so for example consent management and authentication can be based on your bgn as the first the authentication as a first level as the first fact talk before you go now into the actual authentication by the banks within nibs for example we have a database called the icard database which aggregates all the accounts across the industry so again that can feed up higher up the chain when say a fintech is trying to access open banking services and actually just want to say okay where is this customer okay it starts with okay give me your bvn i can do my kyc um i can do consent management based on the bbn you can then come back to news on the icard database and actually discover where this customer banks and you can begin the aggregation journey there so for us at nibs i think and i'd say by and large for a vast majority of the industry i don't think you'd necessarily even see new infrastructure i think what you're going to see is a lot of repurposing and actually making additional use of what we already have you know some of these things like i said by like vivian we didn't envision it for open banking but when the conversation started everybody naturally gravitated or if we need to do kyc is bvn if we need to do authentication uh we can start with bgm we've got the icard database like i said um and for us the major thing or the last thing i would say is for all the players in the value chain up until the point where we're delivering um value to the customer it's going to be very important um that i mean some have already undergone a digital transformation somewhere in the process but as part of any ongoing digital transformation an api strategy needs to be clearly defined for example at nibs now we strongly kind of say you know what everybody talks to each other by an api now without that internal mindset shift whereby people start thinking of their apis as products as opposed to the actual products themselves i think it's it's it's going to cause a bit of friction because it's going to be a new way of doing things i mean um all of a sudden a bank has opened up his apis and it has no control over what a fintech does with it to a certain extent because the other bank next door has also done the same okay i mean i'm going to ask you to pause then i'm going to come back to some of the things you spoke about especially regarding um the openness and data sharing and especially as it relates to costs because don't forget that i'm also going to drive this conversation around how do we enhance inclusion and one of the challenges inclusion is of our inclusion is affordability so how do we ensure that we bring down the cost we bring we bring in more players into the ecosystem to ensure that it's not just the banks that have access but there really is open ecosystem access so aqua coming to you you are our chief plumber tell us what you do as chief plum and how and i think i mean you started talking about having an api strategy how are you enabling api strategies amongst the ecosystem and how are you sort of supporting the bank to bank play and that bounty business plan thank you guys good to get in touch with you um so i'll say uh to address the question directly of what do i do on a day to day uh i potentially wear two hearts i'm also a trustee with the company nigeria the non-governmental optimization for a while then on the other side i also run one pipe now on the open banking side most of our focus has been getting everyone talking about what we're doing about why open banking is good for everyone about how it is not a problem but actually a good thing uh now on the one pipe side uh what we have been doing is that we've been working more closely with banks who have bought into that vision to say in preparation for open banking and when the time comes what do you need to have in place what does your api strategy looks like uh look like what are some of the ways you can monetize when the regime finally comes uh we even go ahead and work with some of those banks to create some products in the short term to demonstrate the viability of that particular for things like driving financial information new accounts openings and things like that so on the side we've been working with some banks who have bought into divisions to say uh let's show you that this thing is practical on the non-governmental on the ngo side of things is mostly advocacy it's good for you it's not bad i don't know okay great thank you so how in in terms of looking at that um in terms of looking at that how do we now look at this broadly so you're saying you're doing a lot of advocacy on the on the non-governmental side so how does that look like for the woman selling bully on the streets for example how does she know who to share her data with or who not to share her data with how do we advocate to that level we're very very alike yeah so at the core of everything we do at one point we always have those internal debates around who are we really trying to say and this example you have given is what we often use internet the woman selling bodybuilding and the practical example i will give is imagine a chef that can cook good news this chef decided i can cook so well and i'm going to open the chain of restaurants just like the proclamation and then there's a limit to the capacity that that chef can open enough restaurants to sell all the women selling for example right so to the best of these capacitors we shared maybe you open one restaurant somewhere in the cage somewhere and we should go but there's a limit to which he will get to that he can reach the woman selling board now imagine that that guy running that limited chain of restaurants by computing that would then has an arrangement where yummy you can come to one of his restaurants and buy his food and repackage it in water such as whatever you can package it into and then take it all the way to the room what that does is that that's created extended distribution for the restaurant at the back it has created a way to reach the woman selling body with what the guy at the back has been cooking if you bring that into banking now i'm a woman selling body by the roadside once in a while i would need some money to help me have two stalls on my streets now i potentially will never be able to save up enough to do that maybe or i may not enough and accumulated enough to do that now imagine me trying to get a loan from a bank that doesn't know me so well to do that expansion they don't even they don't see my money like it's always in cash and i'm trying to expand to two stores on my street they don't have that much information but imagine that the guy who sells me planting to my body who knows my business is able to say okay i can arrange for you to be financed by facebook to have your second store on the streets because i know how much content you buy from me daily i know how you sell it what that has done is that on the back of an open banking or open api regime demand serving planting can do a deal with first bank who has the required deposit to finance the mother to get it to the madam to sell more body and expand her business now translate that to the roughly depending on who you choose to believe 50 million same means from our sector you have radically changed this country and i think this same concept can expand across africa and expand across all developing countries and i think without the support of things like credit and investment products that make sense you cannot advance an economy there's almost nothing you can do and there's only so much that the restaurants in vi can use to get food to the madam siding polio industries great thank you so much jacqueline i think that one thing you're emphasizing as well is what uh per se quickly also said in terms of let's not look at this as a banking conversation but let's look at it as a catalystic catalytic transformational tool that would drive business drive economic growth and the drive the digital economy of nigeria in that sense so and kids i'm going to come to you briefly now i'm just speaking on what a prayer just laid on in terms of how do we now yes we know banks have structured data sets that they've collected over years but how do we now bring in other third-party data sets for example like the informal lender or anybody else within the woman selling bodies so bali is our street food for example right and you live in mexico so you know what street food looks like right so the woman said in bali and how do we ensure that she interacts with her suppliers how do we bring all those data points in into this same open banking framework and whether it's structured on structured data how do we ensure that it's pseudo-anonymized based on you know the business they're doing etc what are your thoughts from global experiences and practices yeah i think that this is a very uh very pertinent question uh when we talk about sharing um sharing data um i guess there are two main concepts that we and we need to understand one is around open banking where the data is financial it's financial data that we are talking about and the other one is open data right where we are talking about any data it could be structured unstructured financial could even be health it could be uh unstructured information available on social media so now i'll i'll answer these questions in two bits right one is around open banking when we talk about open banking what we have seen in different markets especially within the uk and in some countries of latin america and i would say even singapore as well what they've done is the regulator has defined specific apis essentially what data items would be shared how they would be shared when they would be shared and with whom they would be shared and the question of with whom is extremely important here because uh open banking does not mean that you know my my personal financial data would be open uh to any financial organization uh or any third party it would only be open to the organizations that pass through you know certain checks certain audits of uh and have you know tick in the box after checks from a specific regulator but when we're talking about talking about open data the you know the the whole analysis and the whole question changes there and that's where the uh i'll now get to the answer uh uh which um which you want me to give around what sort of information we would use from you know food stands in order to try and figure out what uh what loans or what financial products we can offer them here on this aspect i think financial inclusion becomes a very important angle the person who's on the food stand if that person does not have uh you know a bank account or any trail of the transactions that are happening at his or her food stand it would open banking would find i would say from my perspective and i guess yeah i'm open to uh you know challenge from other panelists um open banking would not be able to help that uh person in order to you know that in order for that person to get the proper uh credit or proper investment or proper saving accounts as well so i think that this is the first aspect is getting that person on the uh you know on the step of financial inclusion let them open up a bank account even and now talking about mexico or latin america in general financial inclusion here is very low only 45 percent of our adults have a bank account so that is a significant challenge so for uh so in addition to looking at customer experience what open banking is trying to do here in from a mexico context is trying to figure out how we can include those people within um within this financial financial space let them open up an account and once we have some information about them in terms of their transactions then we can offer them products then we can offer them services that might be helpful for them okay so this is how i would i would try and uh look at this okay great thank you and kate so what you what i'm hearing is that there's a precursor especially for driving the informal sector to open banking which might be the open data frameworks that we need to see how we can plug in because we're also going to need to understand some of the behavioral patterns that might not be banking related data to ensure that we can actually understand and i think this is going back to a process a quick way also in a leader to in terms of insights and perception based and data that we need to generate and understand what our customers will be needing in the future so income coming to you now given the fact that you are our oldest banker and you're driving that transformation and change so what do you anticipate for your customers regarding open banking and what does that customer experience what's like what customer experience going to look like in the future from the first bank perspective okay and thank you once again nintendo um so open banking at first bank is a part of our core corporate priorities um the mission and the goal is for us to claim leadership within the market across all aspects of the value chain um like everything we do at the bank we do indeed look at it from the customer points of view so i'll talk through the propositions to our customers but also talk through what we're doing to engage our partners as well within the open banking framework um so the first and foremost thing is really uh we're bringing to the customer is around value-add propositions um we've been very very deliberate around looking through the portfolio of opportunities uh using our own data insights to understand our customer preferences white space in the services and products and and then thinking through again very strategically whether through open banking framework through our own internal capabilities to say how do we now start to solve uh banking uh problems on beyond banking as well so with the financial inclusion is one uh lifestyle offerings at one as we've seen over the last two three years uh bank banking is going beyond payments and and credit it's around how do we empower you through all the key stages of your life right and that's one of the aspects where open banking will really come to the form so first and foremost is around crafting um evidence-based data driving value propositions value-add beneficial products and services uh the second one is around the customer experience um as you said um navigating uh the the value chain around giving content understanding what does this mean what is this proposition um what's what are the commercial aspects of it it's around as we've done with most of our products as services as well um around seamlessness right um looking through the customer journeys and showing that you not only complete your transaction but sometimes it can actually be quite pleasant and seamless as well so customer journeys especially through open banking and that's quite critical especially when you start getting into uh multiple uh party um arrangements right um so that you want to make sure that the the background arrangements are seamless uh to the customers uh the second one is around digital uh and how we innovate it's quite quite clear within industry that customers uh uh the primary source is around digital so we aim to meet you where you are so taking an omni channel approach so whether you want to um transact or engage with us through any of our platforms right so whether it's through a mobile app online banking uh or an even a branch so that's one of the advantages we have at first bank we're positioned to meet the customers uh where they are and and engage with them how they prefer to do that i was invested in that as well and that even includes through our massive agent banking network as well so we're able to do uh both physical and digital so the key thing around omni omnichannel banking is around being able to meet the customers where they are and then provide them a seamless experience across all of your touch points the last one which i want to talk through just because of time is around the trust first bank were a lot of things where digital transformation leader were taking the for innovation and like i said we also aim to take leadership within the open banking space within the industry but one of the key attributes as first bank is around trust i think within the market uh that that brand and trust factor is there and that's quite critical uh especially as we've heard through the panel through the session around uh customer data uh hesitancy privacy what do you do around security we've built a very well fought for and well-deserved good relationship with our customers around trust and i and again i think that puts us in a very good position for customers to to start to engage around this open banking thing so even if there's some skepticism with our thought parties uh we're able to leverage the trust we've earned with our customers around those open banking propositions so that's those are just a few key things around what and how we're thinking around the customer agenda we service open banking i'll talk very quickly around uh the partnerships but maybe i'll pause and okay pause for a minute you can pause for a minute and thanks for that because one thing you're bringing out in your conversation is not just adopting um you know um the techniques you're adopting which are human centered and basically customer centricity at the heart of what you're doing and using the evidence that you've acquired to date to help better understand and build those products and services for the customers so i think the proof of the pudding will be in the eating in general so i'll let your customers and attest to that in the in the near future so let me come back to you mr akimi in terms of timing so this operationalization the co-creation when do we want when when is that happening and how fast are we going to sort of take off with this open banking you very much oh well timing i would be very definitive here however i can tell you that the industry is ready to go um we've been engaging since the issuance of the framework the guidelines are being put together we hope that perhaps before the end of the year we'll be able to have an industry agreed guidelines for operationalization we want to ensure that the industry is on board with us here stakeholders across various strata of the industry from coming from from the from from the uh fintechs to the incubate they are all on board speaking with us and trying to uh create what we expect uh using uh uh professor uh uh illustration that would be very catalytic for the economy and we it's quite gratifying for the bank the kind of responses we've been getting from uh the industry in terms of stakeholders participation so we believe that that is being created that it's already on in a way that's what i would say because the industry is receptive to the framework they are all working together people already have an idea of where we're going we just want to get to that consensus where when once we have that consensus we go to the uh we come out with the guidelines and uh in a short framework period we start feeling the impact of open banking thank you thank you for that and i think that what one this what i'm hearing you say is that we all need to agree and realize that there's a bigger picture around what we're doing today we're not just thinking about banking we're actually going beyond banking and looking at the global macroeconomic impact of open banking in terms of jobs catalyzing other sectors like agric and just basically being that um catalyst across the econom the economic systems i mean i'm going to come to you now and again like i said i'm i'm holding you up on the financial inclusion side one of the biggest challenges we have especially trying to reach our rural locations is cost to use and cost to serve right how do we start to break down these costs with open banking because that's you the problem is that a lot of financial services providers can't go to some of these under on impoverished areas because of lower economic levels of activity lower socioeconomic status et cetera et cetera how do we start to break this down using open banking and what is nims going to be doing to ensure that the infrastructure can actually get across nigeria thank you okay thank you very much um i think it's it's a game of scale to start with um in terms of reach i mean we're talking about uh a digital platform here so you know services offered you know from even outside nigeria can reach any part of the country as long as we have that connectivity in place there are certain initiatives that are underway probably too early to speak about but i think this is where in my opinion i think it's something that we will have to rely and work very closely uh with the telcos because they are the ones that hold the kids connectivity um technologies like 5g around the corner which um you know promise improved connectivity but uh you know response times etc um so for us at nibs i think is for us to provide a platform that can scale um i mean we've already proven that over the past years with our core platforms for aggregating pos nip and the bvn so we'll continue to do that and also i think when you talk about those rural areas the beauty of open banking is if we do it at scale it should now be um i shouldn't use the word cheat but it should now make economic sense for small what i would call um the smaller scale entrepreneurs so if an mfb for example wants to create digital products um maybe one day you can even be looking at okay i want to create a product for a village imagine if these open banking as mature these apis are very easily accessible um the standards have matured so even the investments you'd have to make in terms of the people building these products is being made so simple for them that it now begins to become viable that very small scale innovation can happen within very small geographic regions because the reality is we spoke about um uh chief number you were talking to the chief plumber about uh the bully seller but you might go up north and you'll be talking about the uh their foreign the way they interact are totally different and it's never going to be a one heart fit or so if we can do this thing at scale in such a way that there's um we can benefit from those economies those skills to bring the prices down for people innovating and like i said working very closely with the telcos were the key to connectivity i think we're going to see that reduction in cost and availability of services in those areas great thank you so we have the we have the framework from the central bank we have the framework and then we now need the will to ensure that we will work together to bring down the cost of innovation share knowledge share data to ensure that we can actually create there's no nigeria is one of those uh countries where there's no one-size-fits-all no you know there's no it's not a magic bullet so this problem we're going to continue talking about because it's going to need nuanced solutions in different locations the final thing i want to talk and ask my panelists to close out with this you know professor akwa talked about the infrastructure and the two sides of infrastructure the hard infrastructure and the soft infrastructure which is the talent and the skill sets that we need to drive these things the agility that our companies need to be going through and especially advanced for example given the ones that given the fact that they're the oldest in the industry so i'm going to start reviewing what are we doing about the soft side the soft infrastructure the skills the talent and i'm going to go around as final comments from all my panelists thank you i'll start with you inca you're muted thank you uh great question and a very topical question and quite an uh endemic question within the the industry um but particularly more so around open banking where it requires a lot of i guess emerging skills especially in the market so around data analytics um ai neural networks uh cloud apis and and and and and then like so we're doing a number of of things around that but one of the first things around uh which if i take a step back things is the opportunity to collaborate so that different people with different capabilities are able to come together bring a lot of synergies around a product or service proposition so that's one of the first benefits i think of open banking itself you're able to collaborate aggregate very diff different skill sets across partnerships to to come together so open banking itself provides a a kind of uh answer to this talent talent scope but within within the bank we're doing a number of things so first and foremost is is just differentiation and recognizing that the the i.t technology skill set and those consultants or or or people that work in that space uh think differently uh with different uh ecosystem they need different ex work experiences so the employee value proposition is being differentiated first and foremost so and it could be from very um soft things like uh work experience work from home virtual working um environment so creating a digital lab uh environment to the harder stuff around compensation so the first thing is that we recognize and are providing a differentiated uh work experience and employee value proposition for them okay second thing is around partnerships okay so second thing is still around partnerships where we're partnering with specific universities and organizations and we have a pipeline of talents in-house as well we have very well matured talents and development programs as well and then lastly we do have external partnerships in terms of where we're exploring some offshore development uh uh partnerships as well so that's in a nutshell around how we're thinking through the talent question thank you great thank you yinca so basically the whole value chain and reskilling and upskilling and bringing in new talent and new workforce and work looking at the future of work thank you and keith your take on global trends yeah so uh answering this question i think um what i've seen at banks uh that have been successful uh in developing new models uh and you know uh being developing propositions for their customers um in open banking i believe uh there's a philosophy in agile methodology which uh with one of the banks which is uh in in europe that also has offices in latin america uh what they what they uh what they believe in or they follow is that we need to do it fast we might fail uh but we need to fail fast and then learn even faster and i think this is where uh this is what banks need to you know start doing because it takes a while for an organization as big as i believe first bank or other big financial institutions to change their mindset of you know implementing new things seeing if it works if it doesn't work then go on a different path and i think that's one soft um aspect that i believe banks must start to start implementing which fintechs which are new organizations have you know they kind of that's their uh that's in their dna so that's one thing right the philosophy the other one is around uh leadership the leadership must have awareness of what uh you know if you're talking about open banking what open banking is how they can make money out of it how they could add more value to the customers improve the customer experience so i would say these would be the two key things one is around the overall philosophy of being agile changing and second is around leadership being aware and supporting the organization um at every level to uh to follow this philosophy great and those are key tenets of digital transformation in general where and i think covey to a certain degree has catalyzed that thinking however we hope we don't fall back into our comfort zones and wait for the old normal to come back again but how do we continue pushing um the trends forward thank you very thank you very much for that thank you it's mr kimi from the regulatory side what are we doing thank you very much the cbn earlier uh i think late last year i released the regulatory framework and the framework for the regulatory sandbox which will provide a test ground for innovation for ideas we believe that will support uh effort with respect to addressing the the soft issues and very soon i believe that the regulatory sandbox will be up for uh the first court and um i'm very sure that um that will also support the idea of open banking and also encourage more innovators in addition to that we we are all aware that the creative industry financing initiative of the for of the of the central bank is is still is there for i.t um to to sustain the the pipeline of talents that we need around around information technology expertise and that's the bank is not relenting on on that and we we encourage more people to take advantage of that in order to ensure that we sustain um the the level of silence uh availability that we require uh for open banking thank you very much thank you very much and i'll come for that creative uh the creative bank creative instruments soon because i need i need re-skilling as well then coming to your amino how about you um i think um a number of uh things have already been been addressed by fellow panelists um i think is really about because if you uh i i studied i.t um decades ago and back then um i think um working with apis and programming it was purely a field for people who actually had a background in that area but now you tend to have people who you know they might have even learnt programming on youtube so but it doesn't necessarily make mean that they um can do it or understand the core principles but i think it is what it is the way that um things have come to be today so i think it's very important for us to make sure that as we're building these apis we're building them with the with the with the sort of mindset that the users of these apis are not necessarily going to be experts so they need to be built with a lot of the complexity abstracted away standards are going to play a huge huge part in this now the framework um and operational guidelines data and draft i've already specified some of this both on the security side um the api request and response and what you then find is that it almost becomes once people become experts at it so you go to a first bank open banking api you master how to use it hopefully a lot of the complexity has been extracted the way you go to [Music] pay stack or you know flutter waiver open banking api and it's the same way of doing things so i think it's very very important that um the standards are put in place and are adhered to so that over time they can almost become you know gospel for every any anybody in the industry um the other bit is um also um just making sure we are generating a lot of interest so the regulatory sandbox was mentioned um there are also other initiatives which are working closely with the regulatory sandbox like the financial services uh financial fsi financial services uh i think you know initiatives now initiatives like that are all about you know awareness um giving opportunity to um those that might not necessarily have the opportunity they have a sandbox an api sandbox which is basically aggregating a lot of these open banking apis from uh from different institutions because i think it's going to take a while before in my opinion before everybody opens it up in a safe and secure manner such that any college student in his dormitory can just go and sign up and start innovating so i think those uh making it simple by ensuring we are here to standards and abstract all the complexity um awareness through initiatives like the fsi whereby they have irregular hackathons and i think there's even one next week in abuja so i think those kind of initiatives will really really help pull in the talents that would make use of these apis because i think it's going to take maybe five ten years for us to really see the the transformation that everybody is talking about but we also need to make sure that we prepare the talent um to be able to uh um leverage and uh take advantage of the opportunities great thank you i mean and that's really about how do we ensure that there's a pool and we're creating the talent yes we know that we can all learn programming but then you know you can also break many things from not knowing how to fit how to do things properly especially when you're working across different technological stacks in general so awkward you know how to feel fast and feel forward so tell us how you how you how are you staying afloat yeah so i think for me i will speak a bit more structurally borrowing from a thing that amino accepts on an earlier comment so i will say on the talent side of things i would suggest that it is much easier or better uh to let organizations with a particular dna focus on what their best strengths are so a bank will be able to attract bankers and can create the processes and ways to attract bankers people that manage risk and liquidity and things like that a tech company will have systems processes tools to attract tech people for example an infrastructure company we know what they do to attract people like them so if the ecosystem is designed in such a way that everyone is willing to collaborate then you can let different parts of the stack concentrate on how to attract the best type of talents for themselves now for us as one by for example only we also have the same talents crunch that everybody has but we have focused our posturing our hiring processes how we reach out to people to the kind of people we think our organization needs for example there's no way in the world that one pipeline try and hire somebody to understand liquidity treasury it's just a waste of our time we will never lend it the same way a bank will struggle to attract a 22 year old guy that wants to wear shorts to the office it's just hard so let us hire the guys that want to wear shorts you hire the guys that want to wear suits uh let the guy that understands police here the guys i want to do policy and we can all different that's my goal okay great thank you okay so oprah is saying that let's all stay in our lanes and play to our strengths and you know while we have bloodlines in between fusing between sectors etc we need to be mindful of that but ladies and gentlemen thank you very much to all my panelists and i think that one thing that we started talking about today is been and in transformation and because i think uh president equally mentioned that whether we like it or not financial flows are essential to anything that we're going to be doing so that operating system layer that we need to ensure that monies can move back and forth and it's again when we look at it in the bigger picture we're going into and after right the african free trade continental agreement how do we ensure that msmes can be catalyzed and become part of that um ecosystem and this is where the financial flows come from and i think first bank has started the conversation let's keep talking let's keep engaging let's realize that what we're doing is not just about building or securing the financial services ecosystem it's really about building the layer and the foundational layer to make economic activity grow and scale in a digital environment so i want to say thank you to yinka and kate opera for sharing their thoughts with us on this day and we know that the conversation is not over yet but it will continue but we know that from an open banking perspective it is the starting of a developmental ecosystem and i mean thank you for reminding us that it's not a sprint it's a it's it's a it's a marathon journey that we're embarking on a new innovations will come across thank you to first bank and the first bank leadership for demonstrating that they are willing to have conversations like this and they're not threatened by the likes of aque and who are coming to eat their lunch as we have it in in the conversations that we're having today thank you to amino as well to say that you know we we want to work with everybody and of course to the central bank of nigeria who again has started pushing the envelope again with the likes of open banking initiative to say let's start having these conversations and let's start advancing nigeria's financial system to ensure that we're globally ready to take on the world and become that financial center of africa ladies and gentlemen thank you very much for your attention and thank you for listening over to eurotus great stop thank you so much professor alliance david west fantastic uh panel discussion very quickly a big thanks to dr olubokola uh accumulated me of the central bank of nigeria mr amino meda of nibs nigerians bank settlement system plc mr awkward ceo chief plumber i like that of one pipe uh mr olayitsu chief transformation officer at first bank uh ankit sharma i have to get this right director at strategy and which is part of the pwc network thank you all that was a great um panel discussion very in-depth um for our participants if you're in the chat group you'll notice that there is a poll right this customer service week from the 4th of october to the 8th and so uh there's a poll that we'd like for you to participate in and just like valentine's day first bank of course understands that you show appreciation to your your customers uh all year long just like you know you're not just on valentine's day appreciation to your boo it's it's all year long so customer service week do participate in that poll it is in um the uh chat group so you can click on the link and and share your thoughts there uh also remember that all the presentations you've seen will be sent to you uh via uh email because you put in your email when you signed up for this great uh discussion uh fintech summit 5.0 from first bank you will also they also on first bank's youtube page you also get access to this video and again for all the startups that i've been asking asking how do we you know collaborate with first bank uh smeconnect.firstbanknigera.com uh for the smes out there all right it is time to bring in for a closing address the deputy managing director of first bank mr francis schubert uh mr shovel the floor is yours you're welcome sir thank you very much it's really been a great event i decided to dress like this so that knows that banks are fed hiring people in shorts and jumpers thank you as we mark the end of fintech summit 5.0 the theme open banking and derivative opportunities in the financial ecosystem i use this opportunity to thank everyone for taking time out to be a part of this historic event we're leaving this summit with recommendations on how to improve open banking in nigeria and it is my understanding that suggestions from here will be circulated with relevant stakeholders for action looking at the quality of conversations that have taken place during the summit it's clear that we are right to be deliberately diversified selection of catalysts and varied participants you will agree with me that over the ages there have been numerous scientific discoveries that seemed countless intuitive at the time but ended up shaping the overarching world views governing human reasoning open banking has the potential to be such a discovery capable of defining innovation as we know it and pushing delivery of financial services to new frontiers first bank will continue to play his role in fostering thought leadership and innovation for the betterment of humanity our 127 year-old culture of encouraging innovation drives us to always seek out and develop the next best solution capable of enhancing customer experience and value optimization across markets we operate we will continue to set the pace in the development of new trends that will define the future of banking and finance across the world as this year's fintech summit comes to an end we have again set the stage for an engaging and insightful conversation into innovations and discoveries that are redefining direction of human enterprise in the finance world we look forward to continue to showcase the ways in which we are championing these innovations put our customers first i thank you once again for attending this year summit as we look forward to receiving you at fitex 6.0 in 2022 thank you mr scherber sorry your video was off and the participants said they want to see your show oh so sorry i i don't know why but i put it on and um i feel heavy i am so i think i'll pay that we banks we've started hiring guys and jumpers and um and shorts thank you mr thank you so much yes you you do look very casually passionately casually dressed we appreciate you thank you so much again uh deputy managing director of first bank mr francis shobo ladies and gents that brings us to the end of another very in-depth very knowledgeable very very great conversation here uh from first bank fintech summit 5.0 i thank you all for all the participants once again thank you to the first bank leadership putting this together again first bank is at the forefront of the technology conversation coming out of africa's largest economy in nigeria i am rosus it's been a pleasure remember um the poll from uh first bank which is in the comments uh section there uh customer service uh it's customer service week you can get uh you will get all the the videos and all the slides in your email thank you all so much i wish you all a great day and like the deputy managing director said mr festival you know hopefully see you all at the the next uh edition of this very great conversation held by first bank take care are you a business owner been in business for a minimum of 12 months would you like to earn extra cash by offering financial services to people in your community then join one of the fastest growing business communities in nigeria become a first money agent as a first money agent you get to enjoy so much that the brand has to offer grow your social relevance as first 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banking today expanding across the west african sub-region and beyond our early presence made it possible for all hard-working africans to build great things so is it any wonder that not one but two first bankers have gone on to become nigeria's central banker we are intricately woven into the fabric of society supporting polo for over 100 years and pushing the limits of athletic performance rooted in tradition for constantly leaning forward into the future are you coming you first first bang you

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Views: 6,989

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Keywords: Nigeria, Lagos, Abuja, FirstBank, Africa, First Bank of Nigeria Plc, FBN, Paris, London, Abu Dhabi, Johannesburg, Beijing

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Length: 121min 33sec (7293 seconds)

Published: Thu Oct 07 2021