The Nigerian Stock Exchange (NSE), has been able to drag key industry players in the Nigerian economy together to discuss way forward towards at ensuring a good business environment and a well-balanced economy to strive in as they held the 4th edition of the 2019 Market Data Workshop with the theme, ’Partnerships, Products and the Customer.’’
According to the CEO of NSE, Oscar N. Onyema, this year’s theme tends to shine the spotlight on the need for a more inclusive collaboration among Capital market players.
While delivering his speech, Onyema stated that there has been a global increase in the general consumption and spending on Financial Market Data and Market data analytics, stretching beyond the market data typically provided by stock exchanges for equity trading.
He went on to point out that market commentators have estimated the value of total spending on all financial market data, analysis & news at about USD 28.5 billion; while the potential market size of financial information is valued at USD 50 billion, according to McKinsey estimates.
“Despite the evolving needs of consumers demanding for financial information globally, Nigeria still has a low inclination towards investments, according to a research by FSDH, which reported the savings ratio in Nigeria as one of the lowest among selected countries including China, India, Kenya, Malaysia, South Africa, United Kingdom, and USA. The ratio of mutual fund assets to Nigeria’s GDP is also very low at less than 1%, despite the growth of mutual funds in the country in recent times.
“One major reason for this low retail investment appetite is the inadequate knowledge of investment products and the benefits for retail investors. This underscores the importance of creating product offerings that promote diversity in investment, manage risk and make the information readily available to consumers. Exchanges and Data vendors are already responding to this increasing demand using new tools for market data products.
Onyema stressed that, “We are innovating with “smart channels” that can deliver on-demand data to investors – including USSD, Mobile Apps, SMS and IVR. In the same vein, we are ramping up awareness and strategic response to the challenges & opportunities of the 4th Industrial Revolution across the Capital Market ecosystem. This is to ensure that our market remains relevant and competitive in this era of “tectonic” disruption. As an organization known for best practices, we are also adding new practices to our culture.
“We are taking on bold new initiatives to change the Capital Market narrative in partnership with our peers within the wider financial industry, we can say with all certainty – the future is bright!”