Collaboration between banks and fintechs is the cornerstone of scaling financial innovation and fostering inclusion across Africa, asserted Mr. ‘Deremi Atanda, Managing Director of Remita Payment Services Limited, during the FirstBank Fintech Conference 6.0 held in Lagos on Wednesday, November 13 2024.
Speaking on a panel titled “Scaling for Success: Building Strong Alliances between Banks & FinTechs”, Mr. Atanda underscored the critical role that strategic partnerships play in unlocking the potential of financial technology to drive inclusive economic growth.
Joining Mr. Atanda on the panel were other prominent voices in the fintech and banking sectors, including Chijioke Dozie, Co-founder of Carbon; Tomilola Majekodunmi, Co-founder and CEO of Bankly; Akinsope Roberts, Industry Solutions Executive for Central & Southeastern Europe, Middle East & Africa at Microsoft; and Olayinka Situ, Group Head of Corporate Transformation at FirstBank. The session was moderated by Olumuyiwa Olowogboyega, Editor-in-Chief of BigCabal, and brought together industry leaders to discuss how fintechs and traditional financial institutions can create synergy to scale innovation.
During the session, Mr. Atanda reflected on the transformative journey of SystemSpecs, the parent company of Remita, emphasising the importance of persistence, adaptability, and collaboration in revolutionising Nigeria’s financial ecosystem. He shared how early innovations like payroll automation and elements of open banking were crucial milestones that required not only technological advancement but also a deep-seated commitment to overcoming resistance from traditional financial stakeholders.
“Partnerships between banks and fintechs have historically faced challenges, especially when new ideas are ahead of their time,” Mr. Atanda explained. “Some ideas will come ahead of their time, and you may struggle to gain acceptance. It doesn’t mean your idea lacks value; it simply means the partner cannot yet see through the lens you’re using. It’s not about malice or difficulty; it’s about finding ways to align interests and perspectives.” By highlighting the initial resistance encountered by early fintech innovations, he stressed that collaboration is not merely about technology but also about fostering a shared vision that benefits all stakeholders.
Reflecting on Remita’s early journey in the Nigerian payment landscape, Mr. Atanda recounted how the company’s breakthrough came from addressing a fundamental challenge in payroll processing. He noted, “What got us into payments was solving a payroll problem: why should people still send cheques to banks after running payroll? Convincing banks to let customers send salaries to other banks was initially unimaginable. It required deep thinking, persistence, and incentives to show how this would benefit them.” This, he explained, was one of the earliest forms of what would later evolve into the interconnected payment systems we see today.
Mr. Atanda also delved into the critical element of trust in building successful partnerships between banks and fintechs. He emphasised that beyond technological prowess, collaboration requires a human touch, driven by trust, credibility, and a shared commitment to long-term goals. “Collaboration isn’t just about logic. It requires emotional engagement, credibility, and people who believe in your vision to help champion it. You also must keep moving forward, even if you don’t have all the pieces in place, because innovation doesn’t wait for perfection.” This insight underscores the importance of trust in navigating the evolving dynamics of the financial sector.
The panel discussion highlighted the transformative dynamics between banks and fintechs, emphasizing the exciting evolution from traditional hierarchies to vibrant collaboration. Mr. Atanda noted that the once conventional relationship, where banks held a dominant role, has now become a dynamic partnership fueled by the shared pursuit of innovation and agility. “The balance of power has shifted. What was once a structured relationship has become a collaborative game of ideas and speed to deliver,” he remarked. This shift underscores the growing synergy between established financial institutions and nimble fintech companies, showcasing their collective strength in driving progress and delivering exceptional value to customers.
Addressing the often-complex relationship between innovation and regulation, Mr. Atanda highlighted the importance of regulation keeping pace with technological advancements. He remarked, “Innovation will always be ahead of regulation. Regulators don’t create; they regulate what exists. This requires creators to take risks, ensuring that everyone is protected while pushing the boundaries to build frameworks for the future.”
Mr. Atanda concluded by stressing that the impact of financial innovation extends beyond private enterprise and can significantly contribute to national economic development. He called for a collective commitment to creating scalable solutions that align with broader economic goals. “Collaboration stops being just a private sector issue when it aligns with a national transformative agenda. It becomes a scalable framework that benefits everyone and advances the global interests of all stakeholders.” This, he believes, is the path forward for Nigeria to become a leader in the global financial ecosystem.
The FirstBank Fintech Conference 6.0 served as a dynamic platform for insightful discussions on fostering collaboration between banks and fintechs to propel the next phase of financial inclusion and digital transformation in Nigeria. Amidst the industry’s ongoing evolution, visionary leaders like Mr. Atanda continue to champion the power of strategic partnerships in shaping the future of financial services.
