Founder, Zenith Bank, Jim Ovia has rated traditional brick-and-mortar banking institution and its services above fintech operations in Nigeria while simultaneously calling for collaborative effort between brick-and-mortar banking and fintech.
The country has witnessed improved financial inclusion among the under-banked through the penetration of mobile phones and the advent of Fintech in the financial services industry.
Speaking on the Future of Financial Services in Nigeria, at the 2018 Deloitte Alumni Event in Lagos, Ovia pointed out that the conception that fintech would be so disruptive to take away services of the banks is untrue.
According to him, “What is required is to cooperate and collaborate. That is what I called co-competition. That is what we are going to see between now and the next five years. But beyond that, 2024 and 2030, there is going to be massive disruption and more things are going to happen,’’ he said.
Ovia lauded the role of Fintech, particularly its effort in bringing financial services to the unbanked, but said the role of traditional banking in an economic set up cannot be overemphasized.
Despite the upsurge and development, Ovia believes that traditional banking still play a crucial role in the financial space and have an edge above the fintechs.