The Institute of Software Practitioners of Nigeria (ISPON) has called on Nigerian banks to offer monetary help to indigenous startups. ISPON which is the umbrella body for local software companies made this appeal owing to the improvement in the software applications developed by the local software developers which are now being used to solve some local challenges.
ISPON called on the Nigerian banks to take cue from banks in other countries by providing financial assistance in technology startups. ISPON issued a statement which was signed by its President, Mr. Pius Okigbo in which it applauded the Nigerian banks for providing fund for technology startups in the country in 1990s and 2000s. Some of the technology startups that benefited from the funding according to ISPON statement were ValuCard, Interswitch, NIBSS, ATMC, CRC Bureau and Credit Registry. It described this act of the Nigerian banks as foresights.
Following global precedents, the institute in this statement called for a second wave of investment in technology startups which as suggested by ISPON should require the establishment of special purpose vehicles (SPVs). It gave example with Citi Bank that has invested in i-Flex Solutions Limited through its Citigroup Venture Capital Business. As contained in the statement, the investment in the i-Flex Solutions Limited has made it possible for the bank’s FLEXCUBE Suite of products to be adopted in over 40 countries by over 100 financial institutions.
In the statement, the ISPON president mentioned that according to CB Insights data, six major American banks since 2009 have invested in 30 technology companies. Citigroup according to the statement has made the most significant investment through its Citi Ventures which has made strong investment in finch startups such as Jumio, Betterment and Square.
The statement also called on the Nigerian banks to learn how strong ecosystem for innovations is being built by the Deutsche Bank. According to the statement, three innovation laboratories would be open in Berlin, London and Silicon Valley by the Deutsche Bank.
The statement admonished the Nigeria banks to make good use of the innovative awakening that is spreading through the country in particular and Africa in general. Okigbo lamented that none of the Nigerian banks was a participant in DEMO Africa launched and hosted in 2014 in Lagos for emerging technology and trend. But as he mentioned, a lot of venture capitalists across the globe participated in it.
