Entrepreneurship as a Catalyst for Systemic Change | Peter Bamkole | TEDxPAU

Cash and Checkbooks

• The idea of a world without mobile phones, debit cards, and the internet is unimaginable, yet 40 years ago, people lived without these technologies (5s).
• As a young engineer, one had to cover the entire northern states, traveling around 10,000 kilometers every month, without the aid of modern technology, and relying on cash for transactions (41s).
• Entrepreneurship is about turning problems into opportunities and providing solutions that can lead to systemic change (2m2s).
• The experience of carrying cash and the limitations of prepaid checkbooks led to the innovation of new financial services (2m44s).
• A prepaid checkbook with 25 leaves, each with a value of 200 naira, was used to manage expenses, but it still had limitations, such as requiring visits to the bank during banking hours (2m46s).
• Entrepreneurs saw the challenges of the prepaid checkbook system and sought to solve the problem, leading to the development of new financial services (4m30s).
• The clearing of checks was a time-consuming process, taking 7 days for local checks and 21 working days for checks from other states, highlighting the need for innovation in the banking sector (4m44s).
• Entrepreneurs used entrepreneurship principles to turn the challenges of the banking system into opportunities, aiming to create solutions that would make a difference not just for individuals but for the entire country and continent (5m19s).

The Rise of Interswitch

• The journey of transformation through entrepreneurship in the banking sector started with the aim of changing the structure of the banking system, processes, and leveraging technology (5m51s).
• In Nigeria, the banking system was initially at a rudimentary stage, where every move and step taken by entrepreneurs was met with resistance, but the introduction of technology helped bring about change (6m19s).
• The creation of a switching company called Interswitch enabled banks to collaborate and allow customers to access their money from different banks, which was a result of political will and the banks understanding the need for collaboration (6m36s).
• Technology played a significant role in this process, enabling the ability to see balances and allowing customers to deal with their accounts beyond their branch (7m31s).
• Prior to this development, customers could only deal with their specific branch, and even the branch next door of the same bank could not check their account balance (7m50s).

Transformation in Banking

• The transformation in the banking system has led to a cultural shift, providing people with the opportunity for convenience, safety, and ease of transactions (10m56s).
• A personal anecdote illustrates this transformation, where the speaker's daughter, who was 10 years old at the time, did not understand the concept of a checkbook, and by the time she graduated from university, the speaker still had 12 leaves left in their checkbook despite being a frequent user (8m24s).
• The speaker now rarely enters a banking hall and conducts most transactions via phone, and even their driver, who is not a member of Gen Z, has multiple accounts that can be transacted via phone (11m20s).

Principles of Transformation (SECT)

• Entrepreneurship plays a crucial role in transformation, and there are four key things to remember, which are represented by the acronym SECT (11m57s).
• To achieve transformation, it is essential to put a scalable structure in place, otherwise, it will be challenging to transform beyond a locality (12m23s).

Scalability and Economics

• The economics of the transformation must be viable, and it is crucial to think of scale from the beginning to move across the country or continent (13m8s).
• In the past, collecting money from the bank was a time-consuming process, involving collecting a tally number and waiting for it to be called, which limited transactions (13m37s).
• The introduction of scalability in banking, led by entrepreneurs, allowed people to open accounts and collect money from different branches of the same bank, increasing transactions (15m3s).

Policy and Collaboration

• Connecting with other banks and having a policy framework in place, such as the one provided by the Central Bank of Nigeria, is necessary for systemic change (15m58s).
• The policy framework, including regulations and fines for non-compliance, helps to create an environment that makes it easier for entrepreneurs to drive systemic change (16m40s).
• Systemic change requires not only entrepreneurs but also regulators, government, and other stakeholders to work together to create a conducive environment (16m50s).
• The challenges of limited transactions in the past, such as visiting the bank only three or four times a month, can be overcome with systemic change, leading to increased transactions and economic growth (17m6s).

Fintech and Economic Growth

• The economy of financial transactions has become very important, with the potential for higher turnover and more money to be made through commission-based transactions, especially with the rise of fintech, which has transformed microfinance banks into something incredible (17m48s).
• Fintech has provided access to financial services for everyone, even during the COVID-19 pandemic when regular banks faced challenges, and has enabled people to transfer money and buy credits (18m21s).

Cultural Shift and Adoption

• A change in culture is necessary for systemic change, including a shift away from carrying cash and towards using cards, phones, and the internet for transactions, which requires ordinary people to adapt and accept new technologies (18m48s).
• The use of POS machines and mobile POS devices has become widespread, even among everyday people such as market women and mechanics, and has helped to break down barriers and change the culture (19m35s).
• Systemic change requires collaboration between entrepreneurs, regulators, and individuals at the grassroots level, who must be willing to change and adapt their behavior (20m31s).

Technology's Impact

• Technology has transformed everything, from access to the internet and mobile phones to the ability to transfer money and reverse transactions, and has enabled regulators to set rules for reversing transactions within a certain period (21m0s).
• The banking industry is still at the beginning of systemic change, with new technologies and innovations emerging, such as electronic money and cryptocurrencies like Bitcoin (21m45s).
• The evolution of entrepreneurs will continue to push boundaries and drive systemic change, as seen in the financial services sector where the average age of fintech entrepreneurs is around 35, forcing established banks to adapt quickly, ultimately benefiting the customer (23m9s).

Creative Industry Transformation

• Entrepreneurs in the creative industry have also changed the landscape, not just in Nigeria but globally, in areas such as fashion, music, and film, with Nollywood being a notable example of this transformation (23m54s).
• The Nigerian music industry has gained international recognition, with artists raising significant amounts of money from tours and populating music channels like MTV Base (24m50s).

Systemic Change through Problem Solving

• Solving problems that others have overlooked can lead to systemic change, as seen in the work of entrepreneurs who have pioneered innovative solutions (25m27s).
• Fe liab, a leather handbag maker, created a systemic change by training others in the industry, establishing the Lagos Leather Fair, and affecting policy, leading to improved quality leather products in Nigeria (26m1s).
• Another entrepreneur, based in Minna, created a reusable sanitary pad, making it affordable for young girls in rural settings to attend school during their periods, and empowering young women in the process (27m5s).
• A company grew from 20 people to 300 people after solving a problem in a local community, and later expanded to 19 African countries, selling reusable sanitary products (28m8s).
• The problem solved in the local community was found to be universal across other communities, highlighting the potential for systemic change through entrepreneurship (28m34s).
• Systemic change involves entrepreneurs identifying problems, no matter how small, and providing simple solutions that can be relatable and applicable to other communities (28m41s).
• Entrepreneurship has the capacity to drive systemic change by connecting the dots between problems and providing solutions that can be scaled up and replicated in other contexts (29m7s).