Tuesday, July 13, 2021 / 10:00 AM / Ottoabasi Abasiekong for WebTV / Header
Image Credit: WebTV/Ecographics
The Issuance of Digital-Sub Broker licenses by the Securities and Exchange Commission (SEC) would promote innovation in Nigeria's capital market and deepen financial inclusion in the country.
Mr. Gbite Oduneye the CEO, Eagle Global Markets Group made this point in a discussion on "Leveraging Digital Platforms to Drive an Inclusive Capital Market".
According to Oduneye, it was expensive for the established capital market operators to acquire new clients but leveraging technology and partnerships with fintechs could assist them in achieving scale.
He lauded SEC for issuing Chaka technologies the first-ever Digital Sub-broker license which was an attestation to the impact of the "2019 Fintech Roadmap" initiated by the regulator.
The CEO, EGM Group believed it was a good time for the Nigerian capital market, as the entry of the digital sub-brokers had the potential to bring onboard 20m new class of retail investors.
He added that the Nigerian capital market through digital platforms could attain global competitiveness, with a significant leap in capitalization.
Speaking further he said the sub-broking license was phenomenal for the market and projected that between 10 and 20 additional firms will be admitted to operating in the space by 2021 t0 2022.
He was of the view that technology provided immense opportunities for expanding the market and educating more retail investors and the public.
"The Securities and Exchange Commission (SEC) took the right step in identifying tech and fintech as key vehicles for transforming the capital market."
EGM's boss called on stockbrokers to adhere to professional standards and ethics, which he considered important for a market that is regaining the confidence of retail investors.