The Central Bank of Nigeria (CBN) has sought standard practice from financial technology companies (fintechs). The apex bank said there was a need for fintechs to adhere to its policy framework that guides their operations in the financial sector.
Samuel Okojere, the Director, Payment Systems Management Department, CBN, explained that the Central Bank was trying to build an ecosystem that would allow everyone to have the opportunity to present and run its own system, adding that fintechs were introduced to deepen financial inclusion in Nigeria.
Okojere reiterated that the CBN made a commitment in 2011, to include those that were excluded from the banking sector.
CBN’s eyes on fintechs: The CBN had created the Payment System Department, a department that will regulate the activities of fintechs and other financial institutions under the digital development.
The department was established to oversee and regulate the activities of fintechs with global realities of the digital world.
Why CBN is regulating the fintechs: The Central Bank instituted the department for checks and balance. The Payment System Department, through regulation, will ensure Fintechs understand what is expected from them while also helping them address their challenges.
The Group Head, ML Safety, Central Bank of Nigeria, (CBN), Joseph Gina, while addressing the purpose of the department during the Annual Retreat of Chief Compliance Officers with the theme,‘Digital Revolution: Repositioning Compliance Function in Nigeria Banks’, said lack of effective regulation led to Nigeria being blacklisted by other countries as one of the uncooperative countries.
“In the area of compliance, I think we are doing well that is why you will notice that the CBN is constantly collaborating with the operators and the financial institutions so that we are all in tune with what is happening in the world and making sure that nobody is left behind,” Gina added.