Godwin Ehigiamusoe, Founder of the Lift Above Poverty Organisation (LAPO), has said that the advent and increasing effectiveness of financial technology (fintech) are threatening the existence of traditional banking institutions.

Ehigiamusoe said that in the coming decades the banking sector could be taken over by technology companies.

He made the remarks on Tuesday in Benin City during a conversation with young entrepreneurs and students.

The LAPO founder, who emphasised the importance of innovation in business, said that about 10 years ago, the future of banking was already being shaped by fintech companies such as OPay, although many people did not recognise the trend at the time.

According to him, some people had previously insisted that banking must be conducted in certain ways, believing that such practices represented the future of the sector.

He, however, urged business owners to embrace innovation, noting that society was constantly changing.

“In the next 10, 20 and 30 years, we are not going to have an institution called banks. We are going to have technology companies delivering banking services. So, you must be able to think forward and be there.

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“Businesses and environments also change. I don’t know if there is anybody still using a manual typewriter, but because of innovation, technology has made it redundant,” he said.

The conversation, entitled “From Ideas to Enterprise,” was organised by DeeMoat Hub Books & Ideas.

Speaking on lessons from his book, Twelve Commandments for Business Owners: A Guide to Business Success, Ehigiamusoe advised aspiring young entrepreneurs against starting businesses with loans.

He said relying on loans to establish a new business could undermine its chances of survival.

He advised that prospective entrepreneurs should first learn to mobilise personal resources and seek support from family and friends before considering loans to finance business expansion.

While acknowledging the importance of external funding for business growth, he maintained that loans should not be the starting point for inexperienced entrepreneurs.

“I advise anybody not to begin a business with loans. It is not right. Entrepreneurs should adopt a gradual approach to raising capital, beginning with personal contributions, followed by support from family and friends.

“You have to put something into it, no matter how small. I started LAPO with just N300, which I disbursed to support three women engaged in small-scale economic activities,” he noted.

He also said there were business opportunities in the challenges currently confronting Nigeria, stressing that societal problems often create opportunities for interventions and innovative solutions.

He urged young entrepreneurs to look beyond the difficulties facing the country and identify the opportunities they present.

Ehigiamusoe further advised aspiring entrepreneurs to develop clarity of purpose, arguing that business opportunities often emerge from society’s most pressing challenges.

He encouraged young people to look beyond the country’s difficulties and recognise the possibilities for enterprise development, noting that every problem could present an opportunity.

He also introduced what he described as the Training, Interest, Temperament and Experience (TITE) framework, explaining that aspiring entrepreneurs should assess these four factors against the demands of a business before venturing into it.

Earlier, Onome Ugolor, Programme Lead, DeeMoat Hub Books & Ideas, said the organisation believed that reading became particularly valuable when it enabled people to ask better questions and take practical steps.

Ugolor said the initiative brought readers together with authors whose knowledge and experience could help them understand the world and contribute meaningfully to society.

“For the young people here today, this journey offers an important lesson: a business idea can begin with paying attention to a problem around us.

“Today’s conversation gives us an opportunity to explore what it takes to move from having an idea to serving customers, managing resources and building an organisation that can endure,” she added.