In this interview with BusinessDay journalist, Segun Adams, Segun Akintemi, CEO of Page Financials, talks on how innovation has steered Page Financials to becoming a leading financial services company in Nigeria.
Who is Segun Akintemi?
Thank you, Segun. I consider myself passionate about life, family and creating value for the benefit of many. This passion has driven several of my antecedents since starting Page six years ago and before that, through my banking career which spans over 31 years. Although I have a background in technology, I am service oriented and find that delivery of excellent service to customers, exemplary leadership and optimal returns to stakeholders are important elements of growth and sustainability in business, and they have become my pillars as an entrepreneur.
Can you tell us about Page Financials, what does it represent to Nigerians?
Page Financials represents empowerment and opportunities to our customers and we hope to extend this to other Nigerians. We realise that access to finance is sometimes the difference between a great idea and its actualisation, whether it is getting a post-graduate degree, moving homes or expanding a business, and we are here for well-meaning Nigerians who can achieve these targets and settle their obligations over a convenient period of time.
At Page Financials, we aim to partner with our customers, rather than handle their transactions as a one-off. We achieve this by offering suitable investments, loans, or payments products that fit their needs per time. Ultimately, we make it our priority that the financial objectives of our customers are met and right on time too.
As a CEO what would you say drives you?
Success is important and my definition of it is creating irrefutable value that people and the society at large can benefit from. It is about being able to touch and impact lives positively while at the same time finding fulfilment in mine. This is what motivates me every morning and puts the spring under my feet because I’m thinking of new ways to deliver value to my team, customers and all those in my sphere of influence.
You are offering loans of between N200,000 to N5 million to people with need for cash. How is Page Financials different from other financial institutions that are lending to consumers?
At Page Financials, the focus is offering our products through the most innovative, convenient and speedy platforms and processes. We understand that people sometimes make financial decisions that require an urgent need for cash, and we ensure they get what they need, right when they need it.
Today, a customer can put in an application on any of our digital channels or in any of our branches and get the funds in less than three hours after thorough risk assessment and profiling simply by using technology, analytics and the skills of brilliant personnel.
Honestly, what drives us is not a desire to be different from other financial institutions but the passion to deliver unrivalled service to our customers. In doing this, we simply stand out and we have thousands of customer testimonials that attest to this. We always raise the bar in meeting customer demands, once we achieve a level of ingenuity, we’re unto the next. That’s what makes us Page Financials— there’s always a new ‘page’ to turn to.
What category of people do you offer loans to?
We offer two categories of personal loans to salary earners and business loans to support Small and Medium Enterprises (SMEs) which today account for about 50 percent of Nigeria’s Gross Domestic Product (GDP) and employs a large part of the country’s workforce.
As a growing fintech company, how are you able to guarantee that those loans are repaid? Do you also engage the public on financial prudence?
We are a financial services firm driven by innovation rather than technology. We believe technology is only an enabler of innovation so we make an effort not to get caught up in the web of technology but continue on a path of innovation and employ technology to deliver on our ideas.
In ensuring loans are repaid, most of the work is done before disbursement. Again, we use technology and analytics to predict the performance of the facilities and we have good reports to show for it.
In terms of educating the public, we inform, remind and engage our followers and customers on savings, managing credit facilities and deriving value from a range of investments products across all our touch points including our social media platforms. We also sponsor several events where we engage SMEs and salary earners directly.
Since Page Financials started, a lot of players have entered the space. Can you speak to how you have been able to stand out?
It is simple: innovation. Our pledge as a company is to continue to provide excellence in our service by delivering satisfaction at all times while supporting the our customers in the most innovative way. We are a thought leader in the financial services sector, which makes it impossible for us to stop growing. So we would continue to innovate and grow.
When I talk about innovation it is not limited to how we sell loans or market investment notes, but the way we provide internal services within the company as well as our marketing strategy. We strive to create our future and pursue it actively.
As an operator that has been around for a while, can you speak to how the industry has fared in the last decade, what critical issues players face and how the government can come in to serve as a growth catalyst?
The industry has evolved well, although a lot of companies have gone under in the process based on their focus, target market and many other factors.
The government is trying to encourage investment in the sector as one of the major issues in this space remains funding. The government has been very proactive with the provision of N220B MSME fund focused on the development of SMEs disbursed through microfinance banks.
The Bank of Industry (BoI) has also been active in lending to the real sector, thus supporting its growth and development. These are the factors that are going to help us in terms of growth. But there is still a lot more to be done, particularly in terms of regulations. The regulatory framework is evolving in line with the realities of today, with the aim of building more resilient and robust financial institutions.
So, I see the industry evolving and developing as the DMBs have in the last decade, The ease of accessing financial services has also increased significantly with the use of ATMs, POS and the USSD technology which does not require smart phones. This has further propelled growth in the sector but the potential and opportunities remain huge and can only be fully tapped with very innovative thinking.
Less than four months to the financial inclusion deadline of 80 percent, players have not closed the gap. What factors have slowed progress and what lessons can we learn?
I am a bit worried about our approach to financial inclusion. Financial inclusion is not solely the responsibility of financial institutions because it can’t be handled as a revenue generating channel if we must achieve the expected growth rate of inclusion. Rather, financial services and institutions should partner with the government, regulatory agencies and other stakeholders.
So I feel we need to go back to the framework of financial inclusion. We cannot succeed in it if we keep pursuing it to drive revenue. We need to go back and identify how we want to push financial inclusion, but definitely, it is not the forte of financial institutions but rather a social service. They can however provide the enabling environment to make it a success.
The CBN has granted Telcos license to participate in the financial services space, are you looking at collaborating with them?
The CBN issued exposure papers and then license to what is called Payment Service Banks (PSBs), and PSBs are supposed to largely gather deposits. They are not supposed to lend. So it is not a license appropriate for us as we are largely lenders.
In terms of partnerships, we have always partnered with Telcos by providing loans to their customers for acquisition of handsets and several other initiatives that provide seamless flow of our transactions through their network. We also continue to collaborate with a lot of mid-tier Telcos by providing financial support to their customers. I think it would be interesting to watch how Telcos evolve with their PSB license because they have a monumental database, but then I would say this market is big; there is enough room for all of us.
How would you appraise the credit culture in Nigeria?
I make bold to say we have been a significant contributor to the consciousness of the importance of good credit history.
Historically, people never realised Nigeria had very active credit bureaus but today we have three with data of about 40 million Nigerians. So, if you approach us for a loan, the first thing we do is run a check through the credit bureaus. If we realise that you have a loan you are defaulting on, we would politely tell you we would be unable to approve your application.
For us, if we have given hundreds of thousands of loans, you can imagine that we probably would have rejected a lot too, so people would realise that if they do not meet their obligations, they cannot get a loan from us. That’s the responsible thing to do because we have stakeholders that entrust us to make the best decisions in their interest.
The major issue is for our regulatory authorities to intensify the campaign particularly with our players in the industry to ensure no loan is given to someone with questionable character. Until that is done, it might be quite a challenge to push for better credit behaviour. An average Nigerian knows Page Financials would not give loans to people that have defaulted so we would rather be known as a strong proponent for a stronger credit culture.
Secondly, the government needs to be a little bit harder in terms of regulations that protect the lender. Again, we could also create a court where borrowers who can repay their debt but refuse to, can be taken. This would make decision-making faster because the reality is that I cannot take a debtor owing me N5 million to court because the cost and time of going to court can far outweigh the borrowed sum. So, the government needs to design policies that support a culture of responsible lending. Above all, it is a culture we all must imbibe and I am very glad the credit bureaus are already doing this.
How can Nigeria escape its low growth cycle?
One of the biggest measures of growth for an economy is your consumer credit ratio to GDP. If you look at the advanced countries, their rates are averagely above 70 percent while Nigeria is barely 20percent. If you do not drive consumer credit, which in turn grows the economy, then we can’t witness improvement in our GDP growth. What we should be doing as an entity is to identify how to further empower and enrich our consumer credit culture so our SMEs have access to credit and the average Nigerian too. Naturally, it is a way of infusing growth and driving the velocity of money, which is what propagates the growth of GDP.
Where do you see Page Financials in the next five years?
We are building a sustainable organisation that aims to outlive its founders with presence in other African countries and continents. We hope to continue to dominate the market through the acquisition of customers and providing excellent and innovative service and products. We want to continue impacting lives and that for us is the focus.
