The Nigerian Stock Exchange (NSE) is exploring the use of innovative technologies like Blockchain and Distributed Ledger Technology (DLT) as means of raising capital as part of the efforts to align the capital market with emerging financial technologies (fintech).
Blockchain and DLT allow transfer and sharing of digital data across multiple sites without a central storage or administrator.
NSE Chief Executive Officer Mr Oscar Onyema said the Exchange is considering creating alternative and innovative platforms for capital raising through the use of new technologies such as Blockchain and DLT.
He said fintech offers opportunity to deepen the capital market and also achieve sustainable economic growth by empowering a larger portion of the populace to access financial services while simultaneously unlocking efficiencies in product and service delivery for financial institutions as well as increasing transparency and resilience of the Nigerian capital market and larger financial ecosystem.
Onyema pointed out that while the NSE is focused on delivering on its mandate to be Africa’s Preferred Exchange Hub, the bigger picture for the Exchange is to create a dynamic marketplace that fuels growth and empowers people towards excellence in business and ventures.
He said the Exchange has also demonstrated its supports for fintechs and start-ups with the introduction of the growth board of the Exchange, which caters for companies with high growth prospects, especially fintechs emerging from venture capital management to a more mature management that would require public investment and corporate consolidation.
He added that with the support from the Exchange, companies with high growth potential will be able to leverage public finance for growth and expansion.
Onyema, who spoke at a fintech event hosted by the NSE, said the theme of the event: Growth Funding and Strategic Capital Raise – Extending Financial Inclusiveness through the Capital Market” is of particular interest to the Exchange due to its connection to its core function as a hub for accessing capital.
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.
“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,” Onyema said.