Belo-Olusoga: COVID-19 has exposed vulnerability of financial sector

Belo-Olusoga: COVID-19 has exposed vulnerability of financial sector

Mosun Belo-Olusoga, the former chairperson of Access Bank Plc, says the COVID-19 pandemic has exposed the vulnerability of the financial sector.

According to her, it has also highlighted the need for strengthening of financial models in the banking sector.

Belo-Olusoga was the keynote speaker at the Chartered Institute of Bankers of Nigeria (CIBN) Advocacy Dialogue, Series 2.0, on Thursday,

The webinar was themed: ‘Enhanced Sustainable Banking (ESB) Model in the Event of Major Economic and Business Disruptions’.

She said that the banking sector needs to strengthen their financial models to ensure they survive the COVID-19 disruption.

The former bank chairperson also said the pandemic has exposed the need to deemphasise profits among others.

“What we are saying here is that we have to have a purpose before profit. This is a time we need to be there for the long term,” NAN quoted her to have said.

“We don’t know when life will get back to normal, there is more pressure than ever for organisations to innovate and think outside the box.

“The good news is that financial institutions that step up to meet these challenges will benefit from a brand and shareholder perspective.

“The COVID-19 pandemic brought to fore the critical linkages between the environment, human health and the overall economy.

“Actions and practices that negatively impact the environment have significant consequences on human health.”

Bello-Olusoga said a company’s relationship with the natural environment and social causes would become more important in the future and urged the industry to prioritise these initiatives going forward.

Speaking at the same webinar, Aishah Ahmad, deputy governor, financial systems stability directorate at the Central Bank of Nigeria, said banks could overcome the disruptions caused by the pandemic by fortifying their models.

“Technological disruptions and competition have made banks change their business model. Given that banks have been evolving over time they are in a better position to weather the current storm,” a statement by Nelson Olagundoye, CIBN head of corporate communications, quoted her to have said.

“Banks can only manage these challenges if, at this destructive event that is happening, they can fortify their big models and become more agile to respond to what’s happening in the market. And over 80% of banks have incorporated sustainable banking principles in their model.”

It was also announced at the webinar that the International Finance Corporation (IFC) has signed a partnership with the CIBN to introduce a certification programme on sustainable banking in Nigeria.

Olagundoye said the course will be launched later in the year.