Following several years of what has been described as proper planning, the Nigerian Exchange Group, NGX has remained on the leading position in digital innovation.
This is according to the group managing director/CEO of Nigerian Exchange Group, Temi Popoola who spoke in a recent television interview where he disclosed that the recent surge in number of banks and other institutions embarking on capital-raising exercises was a major contributor.
According to the group managing director, the innovation is the result of several years of planning to transform the market into a digitally driven exchange, noting that the capital market has operated remotely for nearly three years without interruption.
Popoola stated that the exchange’s collaboration with critical stakeholders to streamline primary market issuance processes, especially capital raising was highly instrumental even during the COVID-19 pandemic.
He explained that previously, people had to fill out a paper form to transact in securities in the primary market, which came with challenges around dividends, adding that while such paper forms of transaction have not been completely eliminated, digital solutions have been introduced for optimum services and experience.
The group manager who pointed out that the digital innovation on the Exchange website allows investors to participate in the ongoing rights issue and public offer of three Nigerian banks in just two minutes, clarified that the new digital solution functions like an API gateway.
According to him, the innovation integrates with other platforms when qualified parties, as determined by regulators plug into the system. He said irrespective of whether the party is an online broker platform with access to technology or not, they can request those APIs from the Exchange and integrate smoothly to distribute to all their customers.
Popoola further explained that the API gateway is available to anyone licensed and authorized to use it, making it an open system for all qualified parties but clarified that the innovation currently supports only primary market issuances and won’t be expanded to the secondary market due to regulatory limitations.
This was however, after the manager expressed excitement over a report that financial institutions raising capital are also using the newly built APIs stating that it marked a positive period in the group’s capital market’s history and brings the wider financial community closer to the capital market.
Popoola noted that whether you access these banks’ websites or mobile apps, you’ll find it easy to navigate and purchase securities, completing your investment with just a few clicks as the goal is to expand primary market issuance to a broader audience, drawing them into the capital market and subsequently enable investors to trade, buy more and be managed by the group’s intermediaries.
The Nigerian exchange group had earlier revealed that it has a short term plan and is focused on making the platform robust to support innovative capital-raising exercises. With this, it is hoped that the exchange market would in Nigeria will be increasingly annd significantly transformed in a short while.
This is however dependent oh how fast the NGX group can execute and achieve all its desired goals.
