Nairametrics
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
  • Economy
    • Macro-Economic News
    • Get Data
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
  • Economy
    • Macro-Economic News
    • Get Data
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Industries Tech News

Fintechs must pay close attention to regulators to avoid disruption to operations

Segun Olarinmoye by Segun Olarinmoye
July 16, 2020
in Tech News
Nigerian fintech companies, Nigerian fintech firm Infibranches secures $2 million funding to bridge energy distribution gap
Share on FacebookShare on TwitterShare on Linkedin

Over and over, we emphasize the importance of tech-based companies doing everything they can to align with regulators and policymakers, not just to be agreeable, but to avoid being misunderstood by lawmakers.

As a matter of fact, fintechs and other startups must foster public sector engagement to be ahead of disruptive regulation. Change is always going be a slow concept to accept for many people and so the need to always follow the rules, especially as it pertains to the government, is crucial.

fintechs, commercial banks, Events in FinTech industry in 2019, Nigeria's fintech industry 2020: The growth frontier of the new decade

The just-concluded annual general meeting and forum of Finance Correspondents Association of Nigeria (FICAN) held in Abuja had Dr Ibrahim Alley of the Research Department of NDIC announce that there will no longer be the issuance of licenses to fintech operators; this will have direct implications on fintechs whose business models involve money deposits, and loan issuance.

The reasons stated included, lack of consumer understanding, miss-selling of products and services, financial exclusion, data privacy among others,  but most importantly, he emphasized that fintech operators are required to fully disclose information before they can be licensed.

[READ MORE: Nigeria Fintechs take lead in Africa, attract $122 million fund in 2019)

The benefits of companies offering technology solutions to everyday existence is very evident and cannot be ignored. Dr Alley acknowledged this as well, highlighting how the industry has helped small and medium enterprises, with the ease of access to credits, enhance competition and an all-round increase in the resilience of the financial sector, but only when things are done right.

However, as Dr Alley noted, the concealment of information about operations slows down the pace of licensing in the country.

There are processes to everything, and the earlier tech companies start embracing that and adhering to them, the sooner all stakeholders can co-exist and be productive. Alley also said the financial regulators in Nigeria, which are the CBN and NDIC, need to fully understand the space before issuing these licenses.

If understanding the process is what is required to facilitate the process of licensing, fintechs must engage, collaborate and create channels to educate and carry regulators along across the happenings in the sector in Nigeria and global best practices.

Related

Tags: Dr Ibrahim AlleyFICANFinance Correspondents Association of NigeriaFinTechNDICTech-based companies

Comments 1

  1. Rangkim Elijah Gorotji says:
    October 11, 2021 at 10:06 pm

    I want to be a billionaire in dollars

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Access Bank
Bankers Committee
Flowmono

Bfpeer
Mega Millions
FCMB
Ikeja Electrics
Zenith CEX
Kwakol Markets
First bank





    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • UBA upgrades Chatbot features, as Leo launches service on Google Business Chat, Instagram
    • Terra co-founder, Do Kwon, summoned by South Korean parliament over Terra debacle
    • JAMB refutes error in its scoring system, reacts to plans to organize another UTME

    Follow us on social media:

    Recent News

    UBA upgrades Chatbot features, as Leo launches service on Google Business Chat, Instagram

    UBA upgrades Chatbot features, as Leo launches service on Google Business Chat, Instagram

    May 17, 2022
    Terra founder, Do Kwon, breaks silence and offers proposal to restore UST peg

    Terra co-founder, Do Kwon, summoned by South Korean parliament over Terra debacle

    May 17, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Ranking & Reviews
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
    • Economy
      • Macro-Economic News
      • Get Data
    • General News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com