Thursday, September 12, 2019 / 12:15PM / Ottoabasi Abasiekong for Proshare WebTV / Header Image Credit: WebTV
Market commentators have estimated the potential market size of financial information globally at $50bn, while total spending on all financial market data, analysis and news is about $28.5bn.
The CEO of the Nigeria Stock Exchange, Mr Oscar N. Onyema, OON disclosed this at the fourth edition of the NSE Market Data Workshop in Lagos, which focused on the theme "Partnership, Products and Customers".
Onyema who was quoting from the recent McKinsey global estimates, also cited the fact that there has been a global increase in the general consumption and spending on Financial Market Data and Market data analytics, stretching beyond the market data typically provided by stock exchanges for equity trading.
On its part the NSE CEO assured stakeholders that the exchange was committed to utilizing innovative and disruptive solutions, as well as "smart channels" that can deliver on-demand data to investors.
This according to him also includes harnessing platforms like the USSD, Mobile Apps, SMS and IVR to provide real-time market data to the investing community.
According to the him the NSE remains a firm believer in customer centricity and was focused on fostering partnerships with local stakeholders across the market, through the incorporation of new technologies and expertise to drive market data by-products like derivatives and other structured products such as the Exchange Traded Funds.
He decried the fact that despite the evolving needs of consumers demanding for financial information globally, Nigeria still has low inclination towards investments, according to a research by FSDH, which reported the savings ratio in Nigeria as one of the lowest among selected countries including China, India, Kenya, Malaysia, South Africa, United Kingdom, and USA.
Onyema also highlighted that the ratio of mutual fund assets to Nigeria's GDP is also very low at less than 1%, despite the growth of mutual funds in the country in recent times.
"One major reason for this low retail investment appetite is the inadequate knowledge of investment products and the benefits for retail investors. This underscores the importance of creating product offerings that promote diversity in investment, manage risk and make the information readily available to consumers. Exchanges and Data vendors are already responding to this increasing demand using new tools for market data products" He said.
Speaking on the fourth edition of the NSE Market Data Workshop, Onyema asserted that it was set out to spotlight the need for a more inclusive collaboration among Capital market players, and deliver a data product that is easily consumed to make an informed investment decisions.
Giving an overview of the past three editions of the workshop, the NSE boss noted that there has been a heightened propensity for market information across a variety of users especially the investors. This he attributed partly to a growing awareness of the role of market data in decision making.
From the capital market perspective Onyema added that the exchange was ramping up awareness and strategic response to the challenges & opportunities of the 4th Industrial Revolution.
"We are taking on bold new initiatives to change the Capital Market narrative in partnership with our peers within the wider financial industry" Onyema said.
The event featured a panel session on "The Role of Data in Decision Making" and a presentation on "Data Insights and Market Opportunities" amongst other presentations.