Report by: Joel Nwanwko
The Silicon Valley Bank’s shutdown happened so quickly that it sent a shock wave across the global financial scene.
SVB was a respected bank that unraveled so quickly. As the tech industry’s go-to bank, the SVB had established itself as a propagator of innovation not just in the USA but also across developing economies of Africa and Asia.
Oftentimes, the fall of an important capital agent like the SVB results in higher interest rates and rising capital costs. This situation also presents opportunities for traditional banks to step in and act as cushions for startups across the globe.
According to Crunchbase, some banks will possibly look at stepping into the vacuum SVB’s collapse created.
In March, it was reported that St. Louis-based Stifel Financial hired three former SVB employees in what the firm called a “significant expansion of venture banking business.”
Others that may look to move into the space could be newer fintech companies such as Brex and Mercury, which have expressed an interest in lending to startups.
Saying African startups are immune to the SVB collapse may not be entirely correct given recent occurrences relating to shutdowns.
Looking inwardly for solutions might be a purposeful solution to the financial woes the SVB collapse might have caused; especially for early-stage and growth-stage startups.
This is why reports like Stanbic IBTC’s Financial Services Limited subsidiary excite us.
The Entrance of Stanbic IBTC Financial Services Limited
The Stanbic IBTC Financial Services Limited is a subsidiary of Stanbic IBTC Holdings PLC that specializes in financial technology and serves primarily as a Payment Solutions Provider (PSP), with an emphasis on creating innovative technological solutions to improve Stanbic IBTC’s current financial services capabilities.
The subsidiary will make use of cutting-edge technology and knowledge to provide consumers with brand-new and enhanced ways for businesses to manage their finances, sell products online, and collect payments through innovative eCommerce and payment solutions.
Speaking on the development, Dr. Demola Sogunle, Group Chief Executive of Stanbic IBTC Holdings PLC, said that Stanbic IBTC would have the chance to further penetrate the payments and Fintech markets by establishing a Fintech business, which would help the group’s overall business growth.
A major turning point for Stanbic IBTC has been reached with the opening of Stanbic IBTC Financial Services Limited (SIFSL). But innovation isn’t limited to revolutionizing a market with a compelling new product. Whether it’s catching the first wave of a new industry trend or reviving your brand, it’s crucial for sustaining your market share. The bank must continue to stay afloat.
Staying Afloat
Customers who required financial services in the past had to physically visit the bank. However, everything changed when online banking and mobile money were introduced. Emerging markets have been particularly affected by the emergence of fintech companies and innovative mobile banking practices.
Even though innovative finance flows have significantly increased since 2013, they are still below their potential. Developments in new processes and solutions will need to happen fast, at scale, and with an eye on achieving a variety of SDG targets given the extent of the financial deficit for the SDGs in developing countries.
Expectedly, the Stanbic IBTC’s Financial Services Limited would enhance Nigeria’s cutting-edge financial service.
The bank must acknowledge that customers are becoming more tech-savvy, though. Instead of visiting the nearby branch, many people choose to handle their affairs on their mobile devices.
Stanbic IBTC must now keep innovating its service to meet needs by capitalizing on the present market trend to build a new fascinating product that can meet demand more effectively.
Adopting new technology is just one aspect of innovation. It necessitates a fundamental shift in the cultural thinking of your organization and engagement at all levels of the business. Before putting any specific plans into motion, carefully consider this. You don’t want to invest hours coming up with your own idea only to find out the CEO is focusing on something else.
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