By Chinwendu Obienyi
The Association of Securities Dealing Houses of Nigeria (ASHON) has urged the Securities and Exchange Commission (SEC) as well as other market regulators to address the challenges hindering full digitalization of the Nigerian Capital Market (NCM).
ASHON Chairman, Sam Onukwue, made this appeal to the regulators while advising dealing member firms to review their operational models, create new products and deploy technology to upscale operations and skills.
Onukwue noted that investment through the NCM has been moderated by the severe operating environment, characterized by the impact of COVID-19 and its variants on corporate earnings, misalignment of monetary and fiscal policies, high production cost and low purchasing power of consumers, currency devaluation, forex scarcity and high inflationary pressure among others.
He explained that the current investment climate requires an innovative approach that meets the needs of clients in the capital market.
According to him, every dealing member should deepen its research and development and create innovative products, especially to attract the millennials and Generation Z in order to widen the customer base and ensure business continuity.
While harping on the deployment of modern technology to enhance operational efficiency of ASHON members, he noted that the pandemic had institutionalized digital transformation for every business.
“Our members have realized the imperative of digital transformation of our operations. With the impacts of COVID-19 on our business environment, demutualization of the former Nigerian Stock Exchange (NSE) to Nigerian Exchange Group Plc (NGX) and tough operating environment, our operational models have to be reviewed. We must create more innovative financial products that attract millennials and Generation Z.
‘They are digital natives that do almost everything on smartphones. Our business models must take this critical class of investors into consideration. We need to deepen our Research and Development base to be on top of the latest development in the global financial market. We appeal to our regulators to address the observed impediments to full digitalisation of our market such as the issue of identity management,” Onukwue said.