Introduction
Technologyhas revolutionized the financial services system globally. According to the FBI,the global fintech market was valued at $294.74b in 2023 with a potential torise to $340.10b in 2024 while hitting $1,152b by 2032, demonstrating a CAGR of16.5%. Nigeria has a market share of more than 32% up from 25% in 2021 and 20.6% in 2019 marking a CAGR of 15% in the 24 months period in Africa as reported by ICIR. The surge in tech based financial services sector can be traced to the CBN’s National Financial Inclusion Strategy launched in 2012 as well as its Cashless Policy.
Overviewof Chams Hold Co and its subsidiaries
Chams HoldCo Plc one of the fintech companies operating in Nigeria is aprovider of integrated technology solutions. The principal activities of the company and its subsidiaries include payment collections and transactional systems. Its subsidiaries include ChamsSwitch, ChamsMobile, Card Centre and ChamsAccess. Established in 1985, the company has metamorphosed into fintech from computer hardware maintenance.
The importance of digital transformation in the financial industry
Digitaltools and platforms enable financial institutions to engender personalized,convenient, and efficient services. Tools such as mobile banking apps improve accessibility and satisfaction. Digitalization enables financial institutionsto enhance data-driven decision making thereby providing target-driven product offerings. Digitalization supports financial institution's ability to stay compliant with laws and regulations by automating reporting, monitoring, and ensuring data protection. Financial inclusion has gained traction because ofthe adoption of digital tools. The underserved population are now gettingdrastically reduced as a result of the ability of technology to drive bankingservices into the remotest part of the society. According to EFINA, the number of financially excluded Nigerians reduced from 32% in 2020 to 26% in 2023. Digitalization promotes customer-centric services while also leading to cost reduction in banking operations.
How Chams Hold Co is leveraging technology toenhance financial services
ChamsHoldco Plc through its subsidiaries is anchoring digital transformation in the fintech system. With KEGOW, a Mobile Money app developed by ChamsMobile having tripartite functional features bill payments, funds transfers and agency banking are supported thereby reducing stress, and cost and creating employment. The platform is licensed by the CBN. PenCentral is a digital platform developed by ChamsAccess which eases pension remittance by employers enabling them to interface with PFAs for the payment of Contributory Pension obligations in an innovative manner devoid ofthe brick-and-mortar approach adopted by traditional banking institutions. The platform is licensed by PENCOM. Digital security is enhanced by ChamsAccess through its suites of hardware and software solutions which are adopted by financial institutions. ChamsSwitch provides an interface between end-users and financial institutions by providing scrutiny on digital payment gateways serving as police in online transaction systems.The company leverages partnerships with financial institutions having been licensed by the CBN for these services. Card Centre Ltd is a major player in the manufacture and personalization of payment cards for players in the financial services and telecom sector. It is licensed by the CBN and Verve International.
Challengesof digital transformation.
Migrating from legacy systems to novel digital platforms can be challenging because of resistance from users in line with the Technology Adoption Theoretical Models. As the fintech sector is highly regulated, integrating digital transformation as well as complying with regulatory frameworks could be problematic. Data security is also a problem because of the potential for internal stakeholders to connive with external parties and gain access to banks databases causing them unwarranted losses. Access to the right pool of talents to develop innovative solutions poses threats to digital transformations. Developing digital tools to be scalable to match increased user interface negatively affects usage of digital platforms in the long run. The cost of developing in-house solutions or acquiring them from third parties could be prohibitive.
Futureoutlook and growth strategy at Chams Holdco Plc.
Cross-border partnerships will positively impact strategic growth. This is why the Group has partnered with businesses both within and outside the country through its various subsidiaries. An example of such a cross-border partnership is that of Unionpay with Chamsswitch.
Attracting and retaining youthful talents is also a growth strategy to ensure that in-housesolutions are developed to match the competition in the market. As a key growth strategy, Chams is focused on attracting and retaining youthful talents to ensure our in-house solutions remain competitive in the market. The company is actively investing in the training and development of young management trainees who bring innovation and fresh perspectives. These dynamic individuals are poised to drive Chams forward, developing cutting-edge solutions that will propel the organization to new heights and secure our position as industry leaders.
At Chams, we are dedicated to enhancing our brand presence and market visibility to ensure our significant achievements are effectively communicated to both the investor and user communities. By strategically promoting our big wins and innovations, we aim to strengthen Chams' reputation as a leader in identity management and technological solutions.
Conclusion
It is hoped that when the right strategies are adopted, the challenges of digitalization will be reduced to the barest minimum while its gains will be maximized with the result of value creation which ultimately increases shareprices thereby maximizing shareholder wealth.
