Nigeria Deposit Insurance Corporation (NDIC) is making immense effort to ensure that its current regulatory framework protects depositors from risks that could arise from emerging Fintech solutions in the country.
According to the Managing Director, NDIC, Umaru Ibrahim, he stated that the emergence of Fintech is relatively new in the environment and the Central Bank of Nigeria has produced a policy guideline for the registration, licensing and supervision of Fintechs.
He said: “We are also involved in that and we partner with other regulatory authorities such as the Securities and Exchange Commission and well the NCC. That is because each and every one of us has a role to play in the licensing, supervision and regulation of Fintechs.
“We would continue to develop and improve your knowledge and kill so that you are up to date what is happening globally and locally in terms of the financial system so that you can help disseminate information and educate the generality of the public and so that the public remains aware and protected.”
In the same vein, the NDIC boss explained the importance of protecting the deposits of customer.
His words: “There are a lot of issues around consumer protections even without the emergence of complicated products and services and channels of financial intermediation, such as biotech, even today to day ordinary transactions between customers and banks.
“There is a need to protect the deposits of customer to build confidence in the sector and make for the financial stability of the industry.”
Speaking on the development, McKinsey maintained that Fintech is currently taking opportunities and leveraging tech to tackle financial problem in the Nigeria society.
“Nigeria is now home to over 200 Fintech stand alone companies plus a number of Fintech solutions offered by banks and mobile network operators as part of their product portfolio. They can be clearly divided into payments, Assets/ wealth Tech, credit tech insure tech, crypto, personal finance etc.”
What you should know
It is obvious that financial technology in this era is one of the few that has been making waves in Nigeria where protection of financial sector is concerned.
Fintech firms are small-medium retail operations established with the aim of contending with other larger financial institutions through innovations in technology to foster financial services. Among them are; Farmcrowdy, wealth.ng, iInterswitch, Quidax, Naijafund ,Piggyvest.