Sanwo-Olu, Alebiosu seek strategic pact for financial innovation

The Lagos State Governor, Babajide Sanwo-Olu, and the Group Chief Executive Officer of First Bank of Nigeria, Olusegun Alebiosu, have underscored the importance of collaboration between traditional banks and financial technology (fintech) firms to advance Nigeria’s financial landscape through innovation.

They said a financial sector driven by technology, collaboration and innovation (one in which banks and fintech companies are partners in fostering a dynamic and inclusive economy) would help Nigeria to maintain its leadership position in Africa’s digital financial landscape.

They said this yesterday at the opening ceremony of the FirstBank Fintech Summit 6.0 in Lagos themed, ‘Banking on the Future: How Strategic Partnerships Can Foster Innovation and Growth’.

Represented by the Commissioner of Innovation, Science and Technology, Mr. Tunbosun Alake, Sanwo-Olu said Nigeria’s financial system sector has generated over $8 billion through digital platforms, expanding financial access and creating new industry dynamics.

He emphasised the critical need for cross-sector partnerships in an era of digital transformation, which he believed, would continue to reshape the sector. Sanwo-Olu said digital innovation has disrupted many sectors, but none as much as the finance industry in Nigeria, noting recalling how digital progress is unlocking value and opening doors for deeper collaboration across various sectors. He commended the summit as a timely initiative for a sector navigating rapid technological changes and an increasing digital economy.

Also speaking, Alebiosu stressed the importance of collaboration within the banking system. Alebiosu alluded to the automobile industry, where diverse parts come together to form a single functional product, emphasising that the financial sector also relies on partnerships to deliver comprehensive and advanced solutions.

He pointed to FirstBank’s investments in technology and its partnerships with tech firms towards a sustainable and digitally-driven future as a model the system should adopt.

“The financial sector thrives on diverse partnerships. We need partners who can deliver world-class systems. By collaborating, we bring together specialists to advance technology in the financial space,” he stated. He highlighted First Bank’s innovative digital platforms, such as FirstMobile and the USSD code *894#, which allow remote transaction capabilities for customers.

Alebiosu also spoke about FirstBank’s use of robotics and automation to improve customer service, citing the bank’s “Fibonacci” system, an automated assistant enhancing service efficiency in banking halls.

He believes the future of banking will be entirely digital and that collaboration with tech firms will be essential to meet the evolving needs of customers over the next decade.

The keynote speaker and Founder of TAB Global, Emmanuel Daniel, echoed the sentiment, noting that there are both opportunities and risks in a digitally transformed banking sector.

He referenced the collapse of Silicon Valley Bank as a cautionary tale about digital vulnerabilities, urging Nigerian banks to consider tokenisation as a future-proof strategy.

Daniel explained that tokenisation, which allows funds to be withdrawn as digital tokens independent of the bank, could transform the traditional deposit system by enabling direct peer-to-peer transfers.

“Tokenisation enables users to withdraw funds as digital tokens that exist independently of a bank, allowing peer-to-peer transfers outside the traditional banking system. The rules of the deposit game are changing dramatically,” Daniel noted.