This recommendation was given at the end of a new report by the professional services firm, titled “Changing Competitive Landscape: Fintech and the Banking Sector in Nigeria.”
Although the two were initially seen as competitors,“banks have been increasingly collaborating with FinTechs to improve customer experience and enable seamless access to financial services,” the report noted.
It is now expected that traditional banks and Fintech companies collaborate in order to ensure a speedy economic recovery of the country already shattered by COVID-19 pandemic.
Fintech companies and banks are also encouraged to tighten their security due to the increase in cybercrime in Nigeria. CSEAN notes that Nigeria should be prepared to fight new styles of cyber attacks in 2020.
These are the recommendations by PwC on how traditional banks and FinTech companies can be encouraged to collaborate more effectively:
- The already existing synergy between banks and FinTech companies should be strengthened in such a way that it benefits both parties.
- The government should create a unified regulatory system to regulate FinTechs.
- Investment in the Nigerian FinTech space can be encouraged by simply amplifying the listing process on the capital market.
- FinTechs and traditional banks should stay focused on strengthening their digital infrastructure.
- Both banks and FinTech companies should also make tough decisions regarding their operational efficiencies.
- They should come up with enhanced digital products and personalised services.
“In conclusion, corporate entities in the financial services space must begin to realign their business strategies to recognise the sweeping technological changes in the business environment.
In addition, financial service players need to recognise the changes brought upon the sector as a result of the Coronavirus pandemic.
The playing field should be leveled for both FinTech and banks to compete or collaborate efficiently,” the report concluded.