The Director, Banking and Payments System Department of the Central Bank of Nigeria believes that commercial banks and financial technology can continue to thrive side by side instead of one crushing the other.
Fears that the ever-increasing roles as well as their growing of Fintechs will usurp the functionality of commercial banks have led to some quarters predicting a two-horse race where both parties strive to out-do each other.
While acknowledging the expanding roles of Fintechs, Mr. Fatokun says this will not be the case as the emergence of Fintechs will rather allow banks to focusing on their core functions and leaving other roles to service providers.
“In some jurisdictions, FinTechs are being allowed, or plans are under way to allow them connect to the central bank which, previously, was the exclusive preserve of the commercial banks… Fintechs are not licensed as financial institutions, they cannot take deposits, they can make payments out of bank accounts. They can only facilitate payments or make it easier but the banks will still continue to play a very big role” he said.
He further what is currently happening in Nigeria has been successfully handled in developed nations, with both thriving side by side, thus giving assurance that the same can be achieved in Nigeria.