Emefiele regrets the rise of Fintech Banking, says it is disturbing

• The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, said the growth of the fintech ecosystem in Nigeria is challenging mainstream banking
• The CBN stated that the growth and challenges posed by fintech firms in Nigeria to commercial banks are of concern
• According to him, the CBN has put in place mechanisms to ensure growth and robust monitoring of the fintech ecosystem

Godwin Emefele, the Governor of the Central Bank of Nigeria (CBN), stated that the rapid growth in the development of fintech firms has continued to change the financial industry in Nigeria.

He said the growth has continued to disrupt traditional ways of banking and providing financial services in the sector. Emefiele said the development is disturbing.

Products developed by fintech firms challenge big banks

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Emefiele stated the need for the CBN and other regulatory agencies to put sound regulatory controls in place to help mitigate the tragic event that may occur when the country allows the growth of fintech.

He said the myriad of products being developed by fintech firms, including digital payments, international money transfers, mobile money, P2P and lending platforms, are challenging mainstream banking in the country.

According to him, the apex bank had issued some fintech-based policies and guidelines and regulatory sandboxes, open banking and cyber security to ensure a robust regulatory landscape without killing innovation.

Minister of Finance, Budget and National Planning Zainab Ahmed challenged financial sector regulators, including the CBN and the Nigeria Deposit Insurance Corporation (NDIC), to refine their supervisory toolkits to enable them respond to potential threats from fintech.

ThisDay reports that Emefiele and Ahmed spoke at the opening of the International Association of Deposit Insurers Africa Regional Committee Technical Assistance Workshop in Abuja on Tuesday, October 4, 2022.

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Emefiele and Ahmed’s statements came as the World Bank said on Monday, October 4, 2022 that Nigeria’s growth prospects were being suppressed by the underperforming oil sector, creating fiscal inequities for the country.

The World Bank paints a dark picture of Nigeria

However, the World Bank applauded the direct interventions by the CBN in the agricultural and manufacturing sectors, saying it provided some assistance to private investment, which expanded economic activities.

The statement by the World Bank came after the CEO of the Nigeria National Petroleum Company Limited (NNPC), Mele Kyari, said Nigeria is in a state of calamity due to oil theft, pipeline vandalism and other criminal activities in the Niger Delta.

Kuda Bank is challenging the mainstream banking system in Nigeria and has won so far

Remember that Legit.ng reported that Kuda Bank is mostly branchless. That means it has no physical structures, nowhere to physically go and complain if something goes wrong.

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But that has not deterred Nigerians, especially the youths, from running an account with it.

At last count, the bank has collected over 1.4 million customers since it was put into operation in 2017, five years ago.

Source: Legit.ng