FRI, APRIL 12 2019-theG&BJournal- The Nigerian Stock Exchange (NSE) CEO Oscar N Onyema yesterday reiterated the Exchanges’ commitment to exploring alternative platforms to catalyse smart and innovative capital raise, leveraging new technologies like the Blockchain and Distributed Ledger Technology (DLT).
He spoke as was host of an event organised to shine spotlight on equity investment into global FinTech companies as well as the need for local investors to seize the opportunities presented by capital flow into FinTechs especially in emerging markets.
The event billed as interactive has its theme as: “Growth Funding and Strategic Capital Raise – Extending Financial Inclusiveness through the Capital Market.” Onyema said the theme of the gathering is of particular interest to the Exchange due to its connection to the Exchanges’ core function as a hub for accessing capital.
‘’It is also of key interest to the larger economy, particularly the business community of start-ups and SMEs,’’ he said.
Onyema reminded the FinTech executives that the NSE is looking at the bigger picture which is to create a dynamic marketplace that fuels growth and empowers people towards excellence in business and ventures. This is besides the continued focus of delivering ‘’on our mandate to be Africa’s Preferred Exchange Hub.’’
Onyema said the global picture of capital flow into FinTechs especially in emerging markets is proof that FinTechs are important economic catalysts in the 4th Industrial Revolution.
‘’Surprisingly, foreign investors seem to be seeing these gains better than local investors as statistics show that they have dominated capital raise for indigenous start-ups in the last couple of years.’’
According to KPMG’s “2018 Global Analysis of Investment” equity investment into global FinTech companies almost tripled from $18.9 billion to $50.8 billion between 2013 and 2017; and has continued to gain traction. In Nigeria, FinTech offers the opportunity to deepen capital market activities and also achieve sustainable economic growth by: (i) empowering a larger portion of the populace to access financial services; (ii) unlocking efficiencies in product and service delivery for financial institutions; and (iii) increasing transparency and resilience of the Nigerian capital market and larger financial ecosystem.
The NSE boss said these objectives are at the heart of what they do at the Exchange.
One of the key strategies of the NSE is the segmentation of the market with the introduction of a Growth Board to cater to companies with high growth prospects, including FinTechs emerging from Venture Capital management to a more mature management that would require public investment and corporate consolidation.
Onyema said ‘’this approach, in our opinion, would assist companies with high growth potential, leverage public finance for growth and expansion. Apart from this, we are also exploring alternative platforms to catalyse smart and innovative capital raise, leveraging new technologies like the Blockchain and Distributed Ledger Technology (DLT).’’
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