The Securities and Exchange Commission (SEC), Nigerian Exchange Group (NGX) and United Capital Asset Management Limited (UCAML) have insisted that industry collaboration would boost financial inclusion and wealth creation.
This was at the United Capital Asset Management Investment Forum themed, ‘Deepening Financial Inclusion through Participation in Collective Investment Schemes: A Collaborative Approach’, in Lagos yesterday.
The Chief Executive of United Capital Asset Management, Odiri Oginni, said the barriers to collective investment scheme (CIS) and inclusion exist through a lack of trust, awareness, issue of returns and performance (volatility and variables of returns), adding that the solution to financial inclusion and CIS gap is collaboration.
She noted that less than two percent of Nigerians with bank accounts own a CIS account, adding that the nation should begin to look beyond owning a bank to CIS account.
Oginni called on CIS providers to leverage strategic partnerships to reach underserved communities.
On the operations of the firm, she said they function in asset and wealth management, trustee business, Investment banking, securities trading and digital banking.
Director General of SEC, Lamido Yuguda, represented by Executive Commissioner, Dayo Obisan, said increased participation in the capital market expands the retail market, fostering greater economies of scale while injecting capital and liquidity into the market.
He noted that the forum underscores collective commitment to advance financial inclusion and establish a more sustainable investor base for the markets and create wealth for more people.
According to him, the commission is actively involved in promoting financial inclusion through membership in FSS 2020, an initiative from CBN to increase Inclusion, strengthen the regulatory and supervisory framework, enhance the efficiency of the financial system and promote the development of the financial market.
“To enhance awareness and accessibility we have also collaborated with the Funds Managers Association through financial literacy programs and technological initiatives to demystify CIS and reach underserved communities,” he added.
Yuguda said less than five percent of Nigerian adults currently invest in the capital market, highlighting the ongoing need for consented efforts.
Partner, Capital Markets and Accounting Advisory, PwC, Omobolanie Adekoya, said education initiatives, collaboration, diverse and accessible investment products, advocacy, and Impact investing are key ways to champion inclusivity.
She noted that the capital market is key to the growth of economies, adding the need to capture the informal sector.
She stressed the need to harness Al-enabled analytics to get data that would be used to come up with a people-friendly product.
