CBN aims to improve fintech through Corporate Governance, Licensing requirement

by aisha alongu

Jun 29, 2024

Mr. Philip Ikeazor, Deputy Governor of Financial Systems Stability at CBN, stated that Nigeria’s central bank is aiming to enhance the fintech sector through a primary focus on Corporate Governance and Licensing.
Ikeazor disclosed this, during the FITC Fintech (TechNnovation) Conference held in Lagos on Thursday.
According to him, “Corporate Governance is also very critical. Organizations need to have the right structure and be effective transparent and accountable in the administration of their affairs.
‘’And especially now when you look at the body language of the regulator, this is the era of compliance and you’re going to be seeing very effective and dissuasive sanctions,” he said.
“Every organization should conduct its business processes in compliance with the law and the various regulations. Financial institutions need to take the compliance function as extremely important.
Presenting the keynote address, titled: “Building Trust in the Digital Age: Balancing Performance with Compliance” he said the digital banking platforms have made financial services more accessible to millions of Nigerians, fostering greater financial inclusion and convenience.
According to him, “In addition to existing measures, the central bank is working on a new regulation to further enhance performance and compliance. This will focus on two key areas: corporate governance and licensing requirements.
However, on the flip side, he said digitalization also brings challenges that can erode trust if not properly managed. According to him, issues like cybersecurity threats, data breaches, and digital fraud are persistent concerns that can erode consumer confidence in the system.
To manage the risks, Ikeazor said, the CBN has been at the forefront of this revolution, implementing policies that foster innovation while ensuring the stability and integrity of the financial system.
In her opening address, Mrs. Chizor Malize, the Chief Convener and the Chief Executive Officer of FITC, said the emergence of fintech has revolutionized financial services, shifting consumer behaviour towards digital consumption and away from traditional brick-and-mortar establishments globally.
According to her, the rise of companies like PayPal and Square, alongside innovations such as blockchain technology and mobile payment systems such as Apple Pay and Google Wallet, has demonstrated the immense potential of fintech to disrupt traditional banking models and enhance consumer convenience.
While noting that Africa stands at the forefront of this fintech revolution with companies like: Interswitch, Flutterwave, Moniepoint, and others leading the charge, she said Nigerian banks such as Providus Bank, GTBank, and Stanbic IBTC and others are also embracing fintech innovations to meet evolving consumer demands.
“These initiatives showcase Africa’s potential to drive financial inclusion and economic growth through digital innovation. With widespread mobile technology adoption and a growing demand for financial services, these platforms have transformed digital payments, financial inclusion, and banking services, contributing significantly to Africa’s fintech revolution.
“The conference theme, “Building Trust in the Digital Age: Balancing Performance with Compliance,” captures the duality we face head-on.
Trust is the cornerstone of any financial system, and in an age of rapid technological advancement, maintaining that trust is more crucial than ever.
“As we strive for peak performance and efficiency, we must uphold the highest standards of compliance and integrity. Strong regulation and compliance are essential for ensuring financial system stability, which is the focus of this conference. Education and knowledge intervention are vital to innovation, transformation and growth,” she said.