Banks must become ‘invisible’ to compete in digital finance

Banks must adapt to meet customers where they are to remain competitive in the digital finance landscape, according to executives from Access Holdings and OPay. Daniel Awe, head of Fintech Foundry at Access Holdings, argued that banks should seamlessly integrate financial services into everyday activities, becoming almost invisible to customers.

This shift extends the transition from traditional branch banking to mobile services, with transactions occurring where customers engage with them. Chukwudinma Okafor, chief compliance officer at OPay Nigeria, emphasized the importance of meeting customers' practical needs first, rather than solely focusing on the availability of new technology.

This requires banks to rethink their infrastructure and modernize their systems, maintaining security and compliance throughout the process. Both digital-first companies and established banks can benefit from partnerships, combining the financial capabilities of banks with the tailored service offerings of fintechs. Okafor also highlighted the crucial role of fintechs in facilitating transactions between institutions, including the handling of customer funds and the prevention of fraud.

The panel discussed Nigeria's stance on cryptocurrency and stablecoins, with the Securities and Exchange Commission showing a more open attitude towards cryptocurrency while the Central Bank of Nigeria remains cautious, particularly due to concerns about monetary policy and consumer protection. Ultimately, the discussion underscored the need for banks to make financial services more accessible while maintaining the high standards of security and reliability that customers expect.