The Association of Securities Dealing Houses of Nigeria (ASHON), has advised dealing member firms to review their operational models, create new products and deploy technology to upscale operations.
This is because investment in the Nigerian capital market has been moderated by the operating environment, characterised by the Covid-19 crisis, misalignment of monetary and fiscal policies, high production cost, the purchasing power of consumers, currency devaluation, forex scarcity and high inflationary pressure among others.
Specifically, the Chairman of the association, Sam Onukwue maintained that the current investment climate requires an innovative approach that meets the current needs of clients.
According to him, every dealing member should deepen the research and development base and create innovative products to woo investors, especially the millennials and Generation Z.
He stated that this would help widen the customer base and ensure business continuity.
In addition, Onukwue pointed out that the deployment of modern technology would enhance the operational efficiency of members, noting that the Covid-19 crisis had institutionalised digital transformation for every business.
He noted that millennials and Generation Z engage through digital channels as they do virtually everything on their smartphones.
“Our members have to realise the imperative of digital transformation of our operations. With the impacts of Covid-19 on our business environment, demutualisation of the exchange and tough operating environment, our operational models have to be reviewed.
“We must create more innovative financial products to attract millennials and Generation Z. They are digital natives that do almost everything on smartphones.
“Our business models must take this critical class of investors into consideration. We need to deepen our research and development base to be on top of the latest development in the global financial market.
“We appeal to our regulators to address the observed impediments to full digitalisation of our market such as the issue of identity management, “said Onukwue.
He noted that many investors are yet to recover from the meltdown of 2008, while stressing the need to intensify efforts at rekindling their confidence towards investor education.