Businesses within Nigeria’s financial services sector have been advised to adopt technology that is able to make risk and compliance less of a burden by integrating specialised systems and platforms that allow for accurate, real time and relevant information from decision makers.
According to a Deloitte 2015 Compliance Trends Survey, 59 per cent of respondents stated that they are only somewhat confident or not confident at all, that the IT systems the compliance department uses can fulfil the chief compliance officer’s reporting and responsibilities tasks.
Kudzai Danha, managing director, SAP West Africa, said “In the financial services industry, regularly updated, reliable, accurate and relevant information is a fundamental element, should the institution wish to retain its ‘going concern’ status. When operating in a country as vast and populous as Nigeria, with 173 million people spread across 36 states, accurate data and the subsequent insights gained are critical to the delivery of successful financial services.
He said “Regrettably, many banks and insurance companies simply lack the expertise and skills required to fully utilize this information asset and don’t have efficient IT systems in place to capitalize on Big Data.” He noted that Nigeria is a breeding ground for innovation and the digital economy offers incredible opportunities to Nigerian companies – large and small – to leapfrog the competition with innovation by equipping them with simple and relevant data which can drive digital transformation through informed business decision making.
“With over 40 years in the industry, SAP has identified key areas where technology is able to make risk and compliance less of a burden by introducing various platforms and systems which are specifically designed for the financial services industry, including Simple Finance and S4/HANA which allows for accurate, real-time and relevant information for decision makers” he said.
A recent Economist Intelligence Unit (EIU) survey of 208 risk management and compliance executives at retail, commercial and investment banks in 55 countries on six continents found that although there are a larger number of bankers utilising both the analysis and the sharing of big data, there remains a dire need for faster adoption of technology within the sector.
The use of big data and associated analytics allow financial institutions access to updated and relevant information in real time.