Financial Sector Operators Seek Effective Reward System to Check Brain Drain

•Inflation worsens rate of loan service default

Ndubuisi Francis in Abuja

Determined to halt the increasing exodus of talents from the banking and finance sector of the economy, concerned industry players are devising potent measures to stem the tide through effective reward system, among others.

Banks and other financial sector operators had in recent months seen many of their experienced talents especially in the area of software engineering either leaving the industry or jetting out of the country to seek greener pastures or escape from the growing security challenges.

However, in an interview with THISDAY, the Managing Director/Chief Executive Officer of AG Mortgage Bank Plc, Mr. Ngozi Anyogu explained that although the issue of increasing exodus of talents from the financial system was of concern, it was being addressed.

Anyogu told THISDAY on the sidelines of the recently-concluded 15th annual banking and finance conference, in Abuja, that the issue of mass exodus of talents in the finacial sector was extensively deliberated upon at the conference with solutions proffered.

Anyogu, who presides over one of the top mortgage banks in the country, stated that part of the measures being taken to retain talents and halt the sector’s spate of brain drain was an effective and competitive reward system.

On the challenges facing the sector, he said many of them were macroeconomic-induced, and clearly outside the control of the players, citing inflation as one of them.

Noting that the rising rate of inflation affects the entire spectrum of the financial sector, the banking expert stated that the mortgage sub-sector which AG Mortgage Bank Plc is a key player was not spared.

According to him, inflation affects the housing sector because it increases the rate of default in loan services.

Giving further insight, he explained: “Loans that were booked two months back go out of the roof and developers find it difficult to meet with their deliverables due to increasing prices in building and labour.”

Besides, he cited the problem of long-term funding as another pressing challenge, adding that “for the mortgage sub-sector, the issue of long-term funding continues to be a challenge.”

He stressed that the kind of funds available in the system were not suitable for mortgage.

For him, the option was to shift to the capital market to raise funds for real sector services.

Anyogu was also quick to point out that the supply side of housing is weak.

On specific measures his organisation embarked upon to build staff capacity, he disclosed that the bank entered into a capacity building cooperation with the Financial Institutions Training Centre (FITC) as well as similar arrangements with the Lagos Business School (LBS).

Reflecting on the banking conference, Anyogu said it provided a forum for the financial sector to be able to further reach out to the millennial segment where the market is, adding that the sector now provides more digital services.