PFS urges firms to bolster financial systems against losses

Precise Financial Systems has urged financial services providers to optimise their systems for efficiency and guard against unseen financial losses.

This was made known at the capacity building event held recently in Lagos. The event outlined some of the issues bankers and financial services providers face including technology adoption and systems settlement.

Yele Okeremi, managing director/CEO, of Precise Financial Systems stated that poor corporate governance in firms across the industry makes it difficult for banks to maintain a stellar reputation.

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“Auditors are expected to change from time to time. But no auditor, that is what is solved, is going to permit their reputation to be taken under by a bank that is not properly governed,” he said.

He further stated that financial institutions should prioritise change management and system efficiency over new technological trends.

“In 2000, Interswitch was born. We were issuing max cards, and Nigeria made the way in the world, actually, to become the first nation to do full chip and pin compliance. Then Visa and MasterCard came in the case. And that’s where you are talking about. Yes, things happen. So from 30 perhaps, they went to 15,000 and then they went to maybe 300,000. Change was creeping,” he said using a hypothetical bank.

Speaking on the use of technology to drive financial solutions, he stated that technology must be used to enhance the existing systems rather than mere aesthetics, thereby compounding the problem.

“Technology must deliver. At the initial adoption, there may be tension which is called friction, without which there will be no motion. But it is not meant to be destructive friction,” he stated.

He maintained that the relationship between the technology department and operations has to be collaborative when adopting new technology solutions.

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Phillip Ayeni, Deputy Managing Director, Precise Financial Systems stated that financial institutions must guard against forcing new technology systems on their staff and users.

“I’ve seen a situation where IT provides a particular software solution and it physically removes the old systems forcing the staff to use the new one. We must learn to draw the line,” he said.

Okeremi further stated that financial institutions must obtain a warranty agreement from technology companies providing solutions to reduce the risks attached to adopting technology.