“The democratisation of capital markets calls for a renewed look at the most effective approaches to financially empower a larger share of the global population.”
As personal and corporate finance challenges accelerate in a fast-moving world, financial empowerment has become more crucial than ever to navigate the challenges and obstacles in the sector.
Financial empowerment is the combination of knowledge, skills and behaviours a person needs to manage financial resources confidently.
The democratisation of capital markets calls for a renewed look at the most effective approaches to financially empower a larger share of the global population.
For context, the latest Access to Finance (A2F) report from Enhancing Financial Innovation and Access (EFInA) showed that almost half of Nigeria’s adult population lacks access to financial services due to poverty.
Despite this, the report highlighted a positive trend in formal financial inclusion, with significant growth seen in 2023.
EFInA reported an increase in formal financial inclusion, rising from 56 percent in 2020 to 64 percent in 2023. However, despite this improvement, about 40 million Nigerian adults are still excluded from formal financial systems.
On the other side, cyberattacks on the Nigerian financial system have increased in recent years, with financial technology (FinTech) companies and traditional banks bearing the brunt of these nefarious operations.
Financial losses in Nigeria’s banking sector have been enormous as a result of fraudulent operations. The value of fraud in 2022 stood at N273 billion ($762 million). Even these troubling figures are expected to be exceeded by the end of 2023, with projections estimating potential losses of more than N300 billion ($833 million).
These alarming figures should lead financial institutions to play a key role by finding new ways to encourage investor participation and reach population segments that would benefit the most from financial education.
The prominence of financial empowerment in the agendas of world governments serves as a reminder of its ever-growing importance: as the financial world becomes increasingly fast-paced and complex, and more people have direct access to savings and investment tools, the need to help households make sound investment decisions is greater than ever.
The World Economic Forum’s Future of Capital Markets research and the Democratisation of Retail Investing Survey highlight the importance of financial empowerment as a key enabler to increase participation in capital markets and suggest that financial institutions, as the most trusted source of financial advice, can play a leading role in helping to broaden financial knowledge.
There is a difference between financial empowerment and the possession of wealth and a large bank balance. Although some people have wealth, they still need appropriate financial empowerment.
Financial empowerment aims to benefit both individuals and society and improve the financial situation in general.
Rethinking financial education:
Education is the key to starting people down the path toward financial confidence and an opportunity to build wealth. The Democratisation of Retail Investing Survey shows that early exposure to financial education is linked to higher participation in capital markets.
Financial education helps people make more informed decisions on money management, increases awareness of borrowing and repayment of debt and helps avoid predatory lenders and scams.
Access:
It is important for people to see themselves as candidates to receive financial advice, that their goals matter and there exists a range of products that align with their objectives and risk tolerances.
Education:
Well-rounded and action-oriented messaging about financial principles, strategies and product options should be tailored to specific audiences and speak to their unique challenges.
Trust:
Beginning investors need to understand entry-level investment language, market fluctuations and how risk and reward relate to their scenario to build faith in financial institutions and markets.
Surveys have shown that retail investors continue to trust traditional financial institutions over other players when it comes to their monetary decisions. Here’s what organisations can do to maximise the social benefit of that trust:
Design more inclusive products:
There can be a disconnect between the financial needs of low-income consumers and the types of financial products available to them. Also, cost may thwart access to products that can aid in long-term wealth building. By listening and gaining a better understanding of the needs of their communities, companies can design products relevant to a broader set of potential clients.
Leverage technology and expertise:
A combination of financial technology and the human touch can guide new investors towards the right financial education, tools and resources resulting in personalised financial advice for segments that would not traditionally receive it.
Lead with transparency:
The key to building trust and fostering financial inclusion is to provide clear and accessible information on products and services and help ensure that fees, interest rates and any inherent risks are presented in plain, easy-to-digest language.
A stronger, more inclusive financial world:
Financial education is an endeavour that brings multifaceted benefits. As more people gain access to financial services, participation in the economy and social mobility increase and systemic instability declines.
An industry-wide commitment to promote financial education will build trust, help more people make smart financial decisions, strengthen markets and reduce inequities around the world.
For Nigeria, a country propagating enormous promise and formidable challenges, the transformative power of expert financial services is undeniable.
“Navigating Nigeria’s complex economic landscape requires careful planning and risk management.” Oyindamola Lami Adeyemi, the architect of the Still Earth empire and Chief Executive Officer of Still Earth Capital Finance, draws on almost two decades of passion and business acumen to guide Nigerian entrepreneurs and investors past obstacles and towards prosperity.
“Our goal at Still Earth Capital Finance is to lead the Nigerian financial services industry by promoting sustainable growth and prosperity for our people, businesses, and the public sector – ultimately promoting economic empowerment throughout the country.”
The firm puts a premium on innovation, accessibility, and inclusivity, and offers world-class services to reflect these values. “We have developed a range of personalised products from consumer and Micro, Small, and Medium Enterprises (MSMEs) loans to wealth management and financial advisory services, all designed to fit the varied needs of our customers,” Adeyemi said.
In doing so, Still Earth Capital Finance supports both rising entrepreneurs and veteran businesses, wielding its extensive resources to shrink barriers and increase access to tailored financial products.
Bruised by turbulent exchange rates and runaway inflation, Nigeria’s current landscape demands a proactive and resilient approach to financial management.
Still Earth Capital Finance has adeptly met this challenge with agility and determination. “Recognising the impact of inflation on borrowers’ ability to repay loans, our financial solutions include flexible repayment terms and inflation-adjusted pricing mechanisms,” Adeyemi details.
For MSMEs, the lifeblood of the Nigerian economy, the firm’s robust risk management serves as a bulwark. “MSMEs are becoming major actors in addressing industry trends – think demographic shifts, rising consumer demand, socio-economic changes, and targeted government projects to boost sectoral growth – across key sectors like manufacturing, telecommunications, renewable energy, consumer products, healthcare, and technology,” Adeyemi said.
She highlighted their significance with striking statistics: “MSMEs account for 96 percent of businesses, employ 84 percent of the workforce, and contribute 48 percent to the national GDP.”
Given the unique constraints on MSMEs, with access to funding and infrastructure deficits as glaring issues, Still Earth Capital Finance has positioned itself as a crucial ally. “We are committed to bridging this funding gap and advocating for an environment conducive to the growth and sustainability of MSMEs.”
Last year, the firm’s efforts overshot performance targets to reach a 76 percent increase in capital upliftment for MSMEs, significantly enhancing their operational capacity.
Still Earth Capital’s approach to supporting these businesses is built on stringent risk management, detailed market analysis, and active advocacy – strategies that cultivate solutions that speak directly to the needs of each entity.
“Through these services, we assist MSMEs in identifying growth opportunities, enhancing their competitiveness, and improving their market visibility.”
Moreover, as part of their broader strategy to foster inclusivity and nurture entrepreneurial talent regardless of gender or age, Still Earth Capital has launched specialised loan products designed to overcome the specific challenges women and youth entrepreneurs face.
Supported by a team of top-tier personnel with extensive market insights, Still Earth Capital Finance is equally proactive in wealth management and investment.
“The value of active investment management in today’s dynamic and sometimes unpredictable financial markets can’t be overstated,” said Adeyemi.
“Our team actively monitors market conditions, identifies emerging trends, and seizes growth opportunities while mitigating risks. Unlike passive strategies that simply track market indices, our active approach enables us to uncover hidden gems and capitalise on market inefficiencies.”
Adeyemi also highlights the firm’s bespoke approach to wealth management as a distinguishing factor: “Each client has unique financial goals, risk tolerances, and investment preferences. We take the time to understand our clients’ needs and tailor investment strategies that align with their objectives.”
Spotlighting its digital dexterity, Still Earth Capital Finance has invested heavily in digitisation to penetrate every market segment. The recent overhaul of their website and other digital platforms brought intuitive interfaces and seamless access to financial services – from loan applications to engaging their support team.
Adeyemi detailed the basis for these improvements: “Our enhanced accessibility features and optimised performance are designed to meet the increasing demands of e-commerce and evolving needs of our target audience, especially the expanding demographic of young entrepreneurs.”
Beyond surface-level customer interfaces, the firm’s technological prowess extends to streamlining transactions and using deep-dive analytics to capture the market’s pulse.
“We harness the latest in data analytics and artificial intelligence to gain real-time insights into customer behaviour, market trends, and risk assessment.”
With the rising threat of cyberattacks – close to 4000 every day – the firm prioritises cybersecurity and the privacy of client information.
“Still Earth Capital Finance is proudly Nigeria Data Protection Regulation (NDPR) certified. With that, we employ robust encryption protocols, multi-factor authentication mechanisms, and regular security audits to ensure the privacy and security of sensitive information.”
Adeyemi remarked: “As a modern financial entity deeply rooted in Nigeria’s economic landscape, the firm recognises Nigeria’s immense potential as a business and investment hub.
“With a growing middle class and escalating urbanisation, the demand for diverse goods and services offers ample opportunities for bold ventures.”
