CIO Zone

FinTechs will Compete with Banks in Future – GTBank CEO

The Chief Executive Officer of Guaranty Trust Bank Plc (GTBank), Mr. Segun Agbaje has stressed the need for banks to embrace digital transformation to create an entirely new banking experience that meet the demands and expectations of today’s millennials.

Agbaje said this while speaking on the topic: “Making Sense of a World in Motion,” at the ongoing Social Media Week in Lagos.

He urged banks to be innovative so as not to lose their market share to competitors in the digital banking space.

Responding to a question on the relationship between banks and financial technology companies (FinTechs) Agbaje said: “Today it is collaboration. I think eventually it would become competition.

“That is because once the FinTech become big enough and have enough of your customer base, you will become competitors. I think it is collaboration, but it would migrate to competition.”

Therefore, he urged commercial banks to build business models and create platforms to meet the needs of their customers always.

“So, if as a customer, you come into our ecosystem, you can just buy anything, you can do your banking business, you can buy your tickets, you can buy insurance, you can travel, if you want to get a 10-day loan, you can come in and do it. “So, really, we want you to come into our ecosystem, maybe five times a day to do something more than banking,” he added.

While urging more customers to embrace alternative banking channels, he allayed fears electronic banking fraud.

“Let me be honest to you, the percentage of transactions that are susceptible to fraud is immaterial to the larger level. So, I don’t think people should be scared. We are beginning to build more security around it and I think there are more transactions that are carried out without fraud,” he added.