Over the past decade, we have seen digitally reshape the agenda of most businesses across the globe, irrespective of the industry or sector. We are witnessing a shift in the balance of power from businesses operated as traditional value-chain models, to businesses modelled as digital platforms which are now assuming leadership across key global markets including US, China and UK.
Years ago, only a few businesses worried about digital disruption. Today, the likelihood of being disrupted by a digital entrant is fast becoming a reality for many organisations. This reality has led to anxiety amongst decision makers and growing investor interest in the potential of digital solutions. Indeed, digital is now a boardroom discussion. Clear examples of new digital businesses disrupting traditional institutions are emerging across the world.
Just recently, the Chinese alternative financing firm, Qudian, a Fintech founded in 2014 raised $900m from its initial public offering (IPO) on the New York Stock Exchange (NYSE). Alibaba,a digital business model has 450 million users and is now the 8th most valuable company on the New York Stock Exchange. Qudian and Alibaba remind us that the future is digital and digital businesses are leading a revolution. Not surprisingly, as at Q3 2017, 6 of the 10 most valuable entities in the world are digital businesses.
This trend is also noticeable in Africa’s largest economy – Nigeria. There have been record level valuations and investments over the last 18 months for several digital entities in Nigeria, comparable with that of some of the most valuable financial institutions on the Nigerian Stock Exchange. Foreign investments in Nigeria based digital businesses approached the $1bn mark over the last year alone with the most significant investments going into ecommerce and payment platform companies. These companies are already valued at over $1bn each and have footprints across several African Countries.
For those keeping a close watch on these trends, key questions they have are; what is driving these record valuations and funding? Are we witnessing a mere bubble or is there substance behind these digital business models? Are these digital models sustainable? What are the market opportunities driving digital enablement and how can they be harnessed? Do we have the right regulatory environment to enable sustainable value creation through digital innovations? What will the future of financial services look like with digital? What is clear is that businesses that seek to lead must be willing to reinvent their business models to explore the opportunities that digital presents.
To answer these and many other questions regarding the digital space, KPMG Nigeria is holding the KPMG Digital Summit 2017, themed “Leading through Digital”. The summit is intended to shed light on the future of digital finance in Nigeria, take stock of Nigeria’s fast paced digital evolution, engage on emerging trends & market opportunities and provide perspectives and insights to shape the digital agenda. Speaking at the event will be a series of experts from KPMG, as well as representatives from leading technology and financial intuitions that have dedicated time to analyzing the trends associated with the effects of technology on the financial industry.
In his talk at a press briefing for the upcoming Summit 2017, Boye Ademola, Partner & Lead, Digital Transformation, KPMG in Nigeria, revealed that the Summit is expected to attract over 400 participants, including Financial Service Institutions, Fintechs, Accelerators, Government Agencies, Regulators, Private Equity and Venture Capital firms, amongst other stakeholders with an interest in digital innovation in the financial services industry.
According to Boye Ademola, “the main trust of this year’s summit is getting thought leaders and industry experts to share perspectives on strategic themes such as the required operating model overhaul, regulatory imperatives and the collaboration agenda necessary to drive digital innovation across various sectors of the economy, to position Nigeria as a more attractive destination for local and foreign investors”. The event is scheduled to hold on 1 November 2017, at Eko Hotel Convention Centre in Lagos. Intending participants are to register to attend the summit at www.kpmgdigitalsummit.com.