Experts have urged fintech firms to have effective collaboration with regulators to make capital available for operations.
Joseph Ataksi, a speaker at the Nigerian fintech week2021 organised by FintechNGR made this call while speaking on the contribution of the capital market to the growth of fintech and what can be done to attract fintech and the Nigerian capital market.
According to Ataksi, it is more effective collaboration will help to understand the requirements of regulators and which will make regulators more confident and comfortable in allowing this type of investment to the extent that they protect investors
“I believe more can be done to make capital available for the fintech firm, there has to be an effective collaboration between fintech firms and regulators and this can actually serve two purposes. Fintech firms can benefit from the regulator requirements to comply with rules and regulations to protect investors and strengthen the market.
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As you start strengthening the market, the confidence in the market will increase and as confidence increases, investors are more comfortable to invest and I will say through quite a few research, that it has actually been the driving force of investment in the capital market in advanced countries,” He said.
Speaking further, the speaker also stated that effective collaboration will also help educate regulators on the variety of subjects on fintech products and services which will help them understand the type of services they offer.
The active role of the capital market in Nigeria has been one of the factors making Nigeria a national Fintech hub. “The lack of capital market participation in fintech is what is negatively affecting investment in other countries in the African region,” Joseph added.
Fintech or financial technology refers to computer programmes and other technology used to support and enable financial and banking services.
