CBN renews commitment to maximise FinTech operations’ risks

The Central Bank of Nigeria (CBN), which regards FinTechs as an important sector in its operation, has assured it will work towards minimizing the risks associated with their operations to the consumers and financial institutions.

This was disclosed by Director, Banking Supervision Department, CBN, Mr. Mustapha Haruna, who was represented by Assistant Director in the department, Adekunle Adeniji, at the end of the 31st Finance Correspondents and Business Editors seminar, in Enugu.

The two-day seminar, which was organised by the CBN, had “Trends in Nigerian payments system: regulating the fintech digital playing field” as its theme.

While speaking on the topic, “The Fintech phenomenon: implications for supervision and regulation”, Haruna said that as a regulator, the bank would ensure opportunities in FinTechs were properly harnessed.

“As we onboard FinTechs into financial services, we need to have a proper understanding of the technology companies and what risks they bring; and then we need to effectively manage these threats — threat to consumer data protection, among others.”

Financial experts at the seminar also warned that crime rate in the Nigerian cyberspace will increase even as more people are attracted by technology deployed by FinTechs to increase participation in the emerging digital space.

At the moment, Nigeria ranks behind South Africa in cybercrime, owing to its emerging status.

Professor of Finance and Capital Market at Nassarawa State University, Uche Uwaleke, during a roundtable at the seminar hinted that specific moves must be made by the CBN to curb the challenges that will arise as the industry grows bigger in Nigeria.

The former Commissioner for Finance in Imo State noted that as the industry gets more sophisticated with the deployment of technological platforms that will enhance its operations, more criminals will attempt to make dubious gains from Nigerians who patronise the Fintech.

The CBN, however, has assured customers in the space that it is doing everything in its purview to strengthen regulation and compliance among the over 250 operators doing business in the Fintech sector.

“Our duty is to make rules that will guide operators and also make sure that they comply with the rules so as to safeguard their customers,” the bank noted.

The apex bank, however, called on the customers of FinTech to be vigilant as they carry transactions in the space, noting that they must be discreet with information and data sharing.

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