Tag: Segun Aina

• Says it’s important to document our errors so others can learn from them

The history of banking and fintech in Nigeria is not complete without a mention of former CEO of Fountain Trust Bank, Segun Aina. The widely respected banking professional who recently celebrated three scores and ten spoke with GBENGA ADERANTI about life at 70, his experience in the corporate world, his reasons for not going into politics, and the prevalent fraud in the banking sector, among other issues. Excerpts

How do you feel clocking 70?

Reaching 70 feels wonderful. It is a blessing to be alive and in good health, and I am grateful to God for this. This milestone is an opportunity to appreciate everyone who has supported and contributed to my life up to this point.

You have served in various organisations locally and internationally in different capacities. What is your next plan?

The future is ultimately in God’s hands. But as humans, we plan. I like to plan ahead — one year, three years, five years, even 10 or 20 years into the future. The journey so far has been interesting: from 30 years in active banking to about 20 years in the fintech ecosystem leadership and now to incubation and acceleration. The next phase is applied research and intellectual work: writing books, creating podcasts and providing platforms for others to contribute to journals and more, on issues that combine theory and practice for societal development. I believe it’s essential to document our experiences—the successes, the failures, what we’ve done well, and what we could have done differently. By documenting, others can learn from our mistakes.

This endeavour is not just for me but for other leaders who will engage in literary and academic work. I think this will benefit parents, the younger generation and those coming after us. Many young people today, despite being technically, digitally and academically proficient, lack certain skills necessary for harmonious coexistence and real success. The environment and opportunities we had growing up provided a well-rounded education and capacity building that the current generation may lack. We should aim to focus attention on supporting the younger generation, helping them reach their full potential, which will hopefully translate into broader societal benefits.

Many would expect you to take a political appointment or join politics, but you seem to have distanced yourself from both. What influenced your decision?

As they say, every human being is a political animal. We all participate in politics as a voter, a card-carrying party member, political office holder, and so on. Talking about being a member of a political party or running for elected offices, we are all endowed with different skills and competencies, and having observed the political landscape in Nigeria from a distance, I realised I might not possess the necessary skills and competencies to succeed in that arena.

Success, to me, means having a clear purpose, pursuing it diligently, ensuring actions are result-oriented and analysing outcomes to assess their benefits to the organisation and society. To achieve personal goals in politics, one often needs to play the game as it is traditionally played, which might not align with my principles. But in our private capacities, everyone can positively impact society in our little ways and actually be more respected within society.

Which of your assignments would you describe as the most challenging?

Every assignment is unique. To be successful, one must embrace challenges, especially when undertaking audacious, innovative tasks that have never been done before. A significant challenge is bringing people along with you, as you can’t work in isolation.

Being a pioneer means doing things differently and envisioning a future that others might not see. Over the years, I’ve learned how to carry people along, support them to see the vision and incorporate their insights into action plans and decision-making. Every situation came with its challenges, but we managed to overcome them.

How do you manage to perform different tasks simultaneously?

It’s about prioritising what’s urgent and important at any given time. I always tell people that you find time for what truly interests you. I would not accept an assignment if it was not important to me or if I was not interested in it. Once committed, I give it my best effort. When handling multiple roles, I approach each as if it is my only responsibility.

What experience are you unlikely to forget as Chairman of Odua Investment Limited?

O’dua Investment is an organisation with significant public interest. I was surprised when the governor of my state called me in late April 2020 to inform me if I would be willing to serve as chairman of the board. Accepting the role was challenging, given the company’s history and trajectory.

We were assured by the governors of the six owner states that they were determined to bring in people with the right pedigree to run it as a commercially focused organisation. With that assurance, I accepted. The first six months to a year were tough, with long meetings and back-to-back sessions to address foundational issues in a company that was then about 45 years old.

In 2019, you predicted a financial crisis in Nigeria and globally. Do you still hold this view?

Financial crises occur in cycles, often every 10 years. The last major one was in 2009, so by 2019, another was anticipated. While there were challenges, it wasn’t a global financial crisis. However, the unforeseen COVID-19 pandemic that manifested in 2019 and became pronounced globally in early 2020 posed significant challenges worldwide, with lasting impacts due to the substantial resources governments committed to addressing it. This has led to severe economic crises which most countries are still battling with.

What was your upbringing like?

Growing up in Ibadan where I was born was enjoyable. I was fortunate to be born when things worked well—no significant security or economic issues. We had access to quality education and opportunities were based on merit. It was a time of growth and committed leadership focused on building a better future.

Read Also: Nigeria must build a resilient economy to overcome poverty — Makinde

Now that you are 70, would you take a traditional title?

Over the past 30 years, I’ve been offered many titles, which I’ve respectfully declined, with the belief that it was not the right time. Titles are significant in our culture and I value it and respect eminent persons with chieftaincy titles. I’ve always done my part without a chieftaincy title and will continue to in the communities I affiliate with.

The rate at which young bankers engage in fraud is worrisome. What could be responsible for this?

The prevalence of fraudulent activities in Nigeria’s banking sector is deeply rooted in warped societal values. Consequently, fraud and corruption is not confined to the banking industry but is a widespread issue affecting various sectors.

Banks, as custodians of public funds, naturally become focal points for financial crimes. While fraud existed during my early years in banking, it was neither as widespread nor as severe as it is today, both in terms of frequency and magnitude. This escalation reflects a shift in societal values, where monetary wealth is often viewed as the ultimate solution to life’s challenges. However, it’s important to recognise that while money can provide temporary satisfaction, it cannot offer complete and enduring happiness or peace of mind.

Addressing this issue requires a comprehensive approach that includes promoting ethical leadership, reinforcing societal values that prioritise integrity, and implementing robust internal controls within financial institutions. By fostering a culture that values ethical behaviour over material wealth, we can work towards reducing the incidence of fraud in the banking sector and beyond.

Do you relax?

Absolutely! I make it a point to balance work and leisure. When I am in work mode, some might think I don’t have time for anything else. Conversely, during leisure, people are often surprised at how I find time for relaxation. It is essential to live a balanced life. As the saying goes, all work and no play makes Jack a dull boy. Therefore, I ensure to balance both aspects. I socialise, attend parties, watch movies, and play games. I relax more effectively when I’m among people I feel comfortable with.

Nigerian banks and Fintech companies have been expanding across Africa, Europe and Asia lately. What drives this expansion?

This expansion is a natural consequence of growth. It’s noteworthy that some Nigerian Fintech companies are now operating beyond Nigeria and Africa. A decade ago, few Fintechs aspired to operate internationally, with Interswitch being an early example. Many of the prominent Fintechs today such as Flutterwave and Opay did not exist 10 years ago though. Nigeria’s large market of over 200 million people provides a substantial customer base. As these companies grow, they naturally look to the broader African market of 1.4 billion people and, eventually, the global market of nearly eight billion. This progression reflects Africa’s increasing global influence.

How do you think this expansion affects the continent’s economy?

Expanding into other countries positively impacts the economy. For banks, revenues generated abroad benefit Nigerian and African owners, provided ownership remains within the continent. Currently, many Fintech unicorns are incorporated outside Africa and owned by non-Africans, limiting economic benefits. However, there’s a growing push for indigenous and local capital investment.

As more local funding is secured, ownership will increasingly reside with Nigerians and other Africans. Operating internationally can boost foreign exchange earnings and strengthen African economies.

Does the resurgence of cross-country expansion align with the African Continental Free Trade Agreement (AfCFTA)?

Of course, it does. AfCFTA aims to enhance trade relationships between African countries, while expansion beyond Africa establishes connections with other continents.

Can you share some challenges Fintech companies face when operating across continents, particularly in sub-Saharan Africa, Europe and Asia?

Fintech companies, like others, encounter various challenges. A decade ago, funding was the primary issue. But today, regulatory frameworks pose significant challenges. Many regulatory institutions have established Fintech units, but understanding and anticipating developments in this novel sector takes time. Balancing consumer protection with encouraging innovation is crucial. Additionally, different licensing and business requirements across countries necessitate setting up separate entities, each with its own board and compliance obligations. There’s ongoing work to standardise these requirements and support licensing and business passporting to facilitate easier expansion within Africa.

Another major challenge is the shortage of skilled talent. Despite Africa’s young population, the availability of adequately skilled individuals is limited. While efforts are being fast-tracked to provide necessary digital skills to our youths, developing a sufficient talent pool takes time. Moreover, skilled Africans often become targets for international organisations, leading to a talent drain. Advocating for up-skilling and re-skilling beyond immediate local needs can create a surplus, allowing some talent to work abroad and contribute to foreign exchange earnings for African economies.

Lastly, reliance on foreign capital can be challenging. Earning revenue in local currencies while having shareholders expecting returns in stronger foreign currencies creates pressure, especially given the volatility of many African currencies. Thus, fostering indigenous capital is essential.

From your experience, do you think it is profitable to do business abroad?

It is profitable to do business globally. However, the Western world is highly developed, and opportunities for creating new ventures may not be as abundant as in African countries. Africa, being a developing continent, offers numerous opportunities in digital solutions, infrastructure provision, and financial inclusion. The potential for impact and profitability in Africa is significant.

As the pioneer president of the Africa FinTech Network, how has the organisation helped bridge the knowledge gap and introduce innovation into the continent’s Fintech ecosystem?

Over the past six years, the Africa FinTech Network has significantly contributed to the growth of Fintech in Africa. When we started in 2018, there were no unicorns in Africa; now, there are eight or nine. Unicorns are startup businesses that have grown to reach a valuation amount of one billion dollars. Investment in the Fintech space has increased, and Africa has gained global attention.

One of our main goals is to showcase talent and opportunities across all 54 African countries; not just in traditional investment destinations like South Africa, Nigeria, and Kenya. Today, many countries are benefiting from increased investor interest and successful Fintech ventures. Our aim is to have a presence in 50 countries by the end of 2025, ensuring that every African nation benefits from the surge in Fintech innovation, investment, and talent development.

How do you feel about the Fintech company you established in 2002?

In 2002, as I was preparing to retire from the banking industry, I foresaw the fusion of finance and technology and decided to set up a company with Fintech as my first name. Of course, the company didn’t start a business until four years later. It was remarkable that it was the first Fintech-named company in Nigeria at a time the word Fintech had no meaning to most people. That company was the platform used for startup investments in that space and for establishing ecosystem-wide initiatives that led to the founding of organisations such as FintechNGR, and Africa Fintech Network, laying the foundation for future developments in the sector.

What is the future of Fintech in Nigeria?

It is very bright. We are just starting. The future of Fintech in Nigeria is very promising. Over the past decade, the number of Fintech organizations and the jobs they’ve created have grown significantly. Infrastructure has improved, and initiatives like Opolo Global Innovation have established hubs in various universities, equipping students with additional skills needed for the new world of work. This ensures a steady supply of young, talented individuals capable of driving the Fintech industry forward. Nigeria will continue to lead in Africa and set an example for others.