Infostride News, in its latest report, highlighted the remarkable growth experienced by the Central Securities Clearing System (CSCS) Plc in the third quarter of 2023. According to the Managing Director and Chief Executive Officer of CSCS, Mr. Haruna Jalo-Waziri, the average daily clearing and settlement value witnessed a notable 23% increase, reaching approximately N10.7 billion during this period.
Jalo-Waziri made this announcement during the Capital Market Committee (CMC) Meeting held in Lagos. Providing further insights, he revealed that on a year-on-year basis, the growth rate as of October 2023 stood at an impressive 60%. This surge was attributed to bullish sentiments prevailing in the market and the solid performance of key equities reflected in their half-year results.
A significant highlight of CSCS’s performance in Q3 2023 was the substantial increase in the monthly investor Know Your Customer (KYC) updates. The report indicated that 8,572 accounts were updated, representing a remarkable 31% surge compared to the previous quarter (Q2 2023). Jalo-Waziri attributed this growth to the positive market sentiments prevailing during the period.
Recognizing the importance of KYC compliance in the financial sector, CSCS advocated for a coordinated awareness campaign on updating KYC. Jalo-Waziri urged for market-wide collaboration and proposed a comprehensive campaign across various media channels to educate investors and stakeholders about the significance of keeping their KYC records updated. The CEO called for cooperation from Registrars to share investors’ bio-data details on dividend claims with the Depository, expressing optimism that this move would contribute to an increase in the number of accounts with updated records.
In addition to the emphasis on KYC compliance, Jalo-Waziri stressed the necessity of embracing FinTech innovations in the Nigerian capital market. Recognizing the transformative impact of FinTech, he highlighted the integration of cutting-edge technologies such as online trading platforms, robo-advisors, blockchain, and AI-driven analytics. According to Jalo-Waziri, these innovations have not only democratized access to investing but also streamlined processes, enhanced transparency, and fostered innovative investment opportunities.
“The FinTech revolution has profoundly reshaped the landscape of capital markets,” said Jalo-Waziri. “This symbiotic relationship between FinTech and the capital market is pivotal for sustainable financial growth, offering individuals and businesses alike the means to efficiently navigate and leverage the intricacies of modern financial ecosystems.”
Highlighting the role of FinTech in transforming the capital market, Jalo-Waziri emphasized the need for partnerships and collaborations. He acknowledged the significant role played by FinTech in revolutionizing capital markets, providing streamlined and accessible financial services. CSCS expressed its commitment to actively seek partnerships with FinTech companies and stakeholders across the financial sector.
“We are actively seeking partnerships with FinTech companies and stakeholders across the financial sector. Together, we can build a more robust and accessible capital market that benefits every Nigerian,” stated Jalo-Waziri, underlining the collaborative approach CSCS aims to take in achieving a more inclusive and accessible capital market for all. This commitment aligns with the broader vision of leveraging technology to enhance financial services and make the capital market more accessible to a wider range of investors in Nigeria.
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