- The governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, said that 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 worrisome
- According to him, the CBN has put in place mechanisms to ensure the growth and robust monitoring of the fintech ecosystem
Godwin Emefele, the governor of the Central Bank of Nigeria (CBN), stated that the rapid growth of 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 offering financial services in the sector. Emefiele said the development is disturbing.
Products developed by fintech firms challenge big banks
Emefiele stated the need for the CBN and other regulatory agencies to put solid regulatory checks in place to help mitigate the tragic incident that may occur as the country allows the growth of fintech.
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He said the myriads of products being developed by fintech firms, including digital payments, international remittances, mobile money, P2P, and lending platforms, are challenging mainstream banking in the country.
According to him, the apex bank had released some fintech-based policies and guidelines and the regulatory sandboxes, open banking, and cybersecurity to ensure a robust regulatory landscape without killing innovation.
Minister of Finance, Budget, and National Planning Zainab Ahmed challenged regulators in the financial sector, including the CBN and the Nigeria Deposit Insurance Corporation (NDIC), to hone their oversight toolkits to enable them to respond to potential threats from fintech.
ThisDay reports that Emefiele and Ahmed were speaking 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 chances were being suppressed by its underperforming oil sector, creating fiscal inequalities for the country.
World Bank paints dark picture about Nigeria
However, the World Bank applauded the direct interventions by CBN in the agriculture and manufacturing sectors and said that it provided some help to private investment, which expanded economic activities.
The statement by World Bank came after the Group CEO of the Nigeria National Petroleum Company Limited (NNPC), Mele Kyari, said Nigeria is in a state of misfortune over oil theft, pipeline vandalism, and other criminal activities in the Niger Delta.
Kuda Bank challenges mainstream banking system in Nigeria and winning so Far
Recall that Legit.ng reported that for the most part, Kuda Bank is branchless. Meaning it has no physical structures, nowhere to physically go and lay complaints if anything goes amiss.
But it has not deterred Nigerians, especially the youths from operating an account with it.
As of the last count, the bank has amassed over 1.4 million customers since it came on stream in 2017, five years ago.