Fintechs Urged to Adhere to Corporate Governance

 Omolabake Fasogbon

The need for financial technology (fintech) companies to stay true to the ideals of corporate governance has been reiterated at the 2nd National Corporate Governance Summit held recently in Lagos.

Experts at the summit reckoned that the sustainability and future of fintechs largely depend on players’ commitment to sound governance practice. 

While facilitating the summit, Managing Director of SystemSpecs Technology Services Limited, Demola Igbalajobi, maintained that corporate governance remains a necessity that organisations must embrace. 

Igbalajobi, during a plenary session with theme: “Fintech Evolution and Corporate Governance Imperatives for Sustainable Impact,” highlighted challenges and opportunities in fintech, noting however that robust governance would aid in navigating tough times. 

Citing SystemSpecs’s Treasury Single Account (TSA) project with the federal government, the tech guru stated that it would not have ended well without an established governing norm in-house. 

He said, “Our experience with the TSA project has shown that strong and demonstrable corporate governance culture that runs from the organisation’s board right through to its operational and business practices can be a lifeline when such projects are challenged or questioned, and you need to show evidence of what had been done.

“Without this, the fundamentals of the organisation, and potentially its existence can become questionable.”

Igbalajobi further proved that business profitability and attraction was hinged on the organisation’s practice. 

Citing the Nigerian Exchange Limited data, he said,  “Companies with robust governance practices have seen a 40 per cent increase in investor confidence and a corresponding rise in market capitalisation.”

Similarly, an expert in governance, Prof. Oluseyi Oduyemi added, “The statistics are clear- companies with strong governance frameworks outperform their peers by 30 per cent in terms of long-term profitability.”

Reaffirming the impact of governance, the President of the Fintech Association of Nigeria, Dr. Olusegun Aina said, “Corporate governance is the backbone of sustainable fintech growth. Without it, we risk undermining the very foundations of our technological advancements.” 

Prof. Oluseyi Oduyemi, a renowned expert in corporate governance added, “The statistics are clear: companies with strong governance frameworks outperform their peers by 30% in terms of long-term profitability.”