The Managing Director/ Chief Executive of the Nigerian Deposit Insurance Corporation (NDIC), Umaru Ibrahim has expressed optimism in tackling emerging threats facing the banking industry by employing artificial intelligence and digital technology.
This he hinted during the dinner held to commemorate the corporation’s 30th anniversary. Ibrahim said that the new challenges facing the industry include new emerging operational risks, phenomenal growth of assets of the Nigerian banking industry and its implications for supervision, regulations, among others.
“Our growing population, phenomenal growth of the Nigerian population, young population and the demographic shift, changing customer preferences, poverty and unemployment. These are challenges which could largely be addressed if we have a very stable banking system.
“We are also aware of the emerging role of financial technologies (fintechs) in the financial landscape, blockchain technology and phenomenal incursion of digital currencies globally and Nigeria is not left behind. In fact, it is in appreciation of this that arrangements are underway to develop a special team of experts in innovation and digital technology in the NDIC.”
The NDIC MD disclosed that actions were being taken by the corporation in this light. For instance, the board of directors and management of the corporation visited Korea and Taiwan a month and a half ago to sign a Memoranda of Understanding with organizations in order to learn how to improve in the area of internet banking, and digital technology in general.
“As we speak, I think Korea has just licensed two or three internet banks only and we asked them, “how are you going to supervise and regulate these banks that will operate 24/7 without a human being?” They said they too are having sleepless nights but will have to catch up. They are going to employ artificial intelligence to solve their problems to ensure effective supervision and regulation of these institutions,” Ibrahim said.
Speaking further, Ibrahim gave a rundown of the NDIC platform from its inception till date. He made known that the corporation was established in March 1989 following the promulgation of Decree No. 22 of 1988, now replaced with NDIC Act 16 of 2006.
He went on to urge staff of the corporation to continue to put in quality work as they continue to face challenges that lay ahead.