KPMG holds digital summit, pegs investments at $1bn

Ozioma Ubabukoh

KPMG Nigeria has said that the KPMG Digital Summit 2017, which begins today (Wednesday), is intended to shed light on the future of digital finance and take stock of the country’s digital evolution.

It said that the summit would also engage on emerging trends and market opportunities, and provide perspectives and insights to shape the digital agenda.

The consulting firm said that it decided to host the summit having looked at the record level valuation and investments over the last 18 months for several digital entities in Nigeria, which it said were comparable to some of the most valuable financial institutions on the Nigerian Stock Exchange.

The Partner & Lead, Digital Transformation, KPMG Nigeria, Boye Ademola, said, “Foreign investments in Nigeria’s digital businesses approached the $1bn mark over the last year alone, with the most significant investments going to e-commerce and payment platform companies.

“These companies are already valued at over $1bn each and have footprints across several African countries.”

He added, “Over the past decade, we have seen digital 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 the United States, China and the United Kingdom.”

Ademola noted that years ago, only a few businesses worried about digital disruption, saying, “Today, the likelihood of being disrupted by a digital entrant is fast becoming a reality for many organisations.”

According to him, this reality has led to anxiety among decision makers and growing investor interests in the potential of digital solutions.

Ademola added, “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 financial technology firm founded in 2014, raised $900m from its initial public offering on the New York Stock Exchange. Alibaba, a digital business model, has 450 million users and is now the eighth 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 of Q3 2017, six of the 10 most valuable entities in the world were digital businesses.”

Ademola also said those to speak at the digital summit would be experts from KPMG, as well as representatives from leading technology and financial institutions that had dedicated time to analysing the trends associated with the effects of technology on the financial industry.

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