The Central Bank of Nigeria (CBN) is developing a new regulation to improve the level of compliance and corporate governance practice by fintechs in the country.
Deputy Governor, Financial Systems Stability at CBN, Philip Ikeazor, disclosed this during the FITC Fintech (TechNnovation) Conference in Lagos.
Presenting a keynote address, titled: “Building Trust in the Digital Age: Balancing Performance with Compliance,” he said the new regulation is crucial to mitigate the risks of the digital era.
Ikeazor noted that the digital banking platforms have made financial services more accessible to millions of Nigerians, fostering greater financial inclusion and convenience.
He, however, note the challenges of digitalization such as cybersecurity threats, data breaches, and digital fraud which can erode trust if not properly managed.
These issues, the deputy governor stated, are persistent concerns that can erode consumer confidence in the system.
To manage the risks, Ikeazor said the CBN has been at the forefront of this revolution, implementing policies that foster innovation while ensuring the stability and integrity of the financial system.
“In addition to existing measures, the central bank is working on a new regulation to further enhance performance and compliance. This will focus on two key areas: corporate governance and licensing requirements.
Chief Convener and the Chief Executive Officer of FITC, Chizor Malize, in a remark, said the emergence of fintech has revolutionised financial services, shifting consumer behaviour towards digital consumption and away from traditional brick-and-mortar establishments globally.
She pointed out that the rise of companies like PayPal and Square, alongside innovations such as blockchain technology and mobile payment systems such as Apple Pay and Google Wallet, have demonstrated the immense potential of fintech to disrupt traditional banking models and enhance consumer convenience.
Malize pointed out that Africa stands at the forefront of this fintech revolution with companies like Interswitch, Flutterwave, Moniepoint, and others leading the charge, and that Nigerian banks such as Providus Bank, GTBank, and Stanbic IBTC and others are also embracing fintech innovations to meet evolving consumer demands.
