The Managing Director of Nigeria Deposit Insurance Corporation (NDIC), Mr. Umaru Ibrahim, has noted that more regulations are coming in the Nigerian fintech space. He made the disclosure in a speech in Kaduna. Speaking before the Finance Correspondents Association of Nigeria (FICAN) in an event with a theme “COVID-19 & FinTech Disruption: Opportunities and Challenges for Banking System Stability and Deposit Insurance”, he dropped these lines.
The emergence of fintechs is relatively new in this environment and the Central Bank of Nigeria has produced a policy guideline for the registration, licensing, and supervision of fintechs.
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 skills so that you are up to date on 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.
There are a lot of issues around consumer protections, even without the emergence of complicated products and services and channels of financial intermediation,…, even to day-to-day ordinary transactions between customers and banks.
The key line is this – “There are a lot of issues around consumer protections”. I do think, since it is NDIC that is speaking, you would expect a new regulatory requirement where funds in digital wallets and online accounts would need to be insured. You cannot argue otherwise when you remember what happened in Thrive Agric.
Sure, it needs to be done with no motive to annihilate the fintech sector with disproportionate high wattage of regulations; think Ant Group in China and the recent evolving regulation. If they get it wrong, the fintechs will just become “micro” banks which would be really bad.