FintechNGR Push for More Regulatory Frameworks to Address Cybersecurity Challenges
Worried about the increasing rate of cyber attacks on Financial Technology (Fintech) players, resulting in huge financial losses by Fintech players and several financial institutions, the Fintech Association of Nigeria (FinTechNGR), has called for more regulatory frameworks that will further drive innovation, curb illicit financial transactions and reduce cyber attacks on the Fintech ecosystem.
Chairman, Board of Trustees, FintechNGR and President, Africa Fintech Network, Dr. Segun Aina, who spoke to journalists shortly after the Annual General Meeting (AGM) of FintechNGR, which held in Lagos, said additional regulatory framework would address the issues around fraudulent financial transactions and reduce the rate of cyber attacks on organisations.
Aina also stressed the need for good corporate governance that would help in addressing the issues around cybersecurity and reduce the frequency of cyber attacks.
“Fintech players have lost so much money to cyber attacks, including those in the financial space like the banks. With the increasing adoption of digital technologies, there is need to ensure quick preemptive steps to stay ahead of the cybercriminals. We know we cannot eliminate cyber attacks completely from the system, but with constant efforts from Fintech players, and with increased regulatory frameworks, we can reduce it to the barest minimum,” Aina said.
“Regulation drives innovation and in order to curb the excesses of industry players, the Central Bank of Nigeria (CBN) has introduced the regulatory sandbox, through which it controls financial transactions in the system. With the regulatory sandbox, CBN is able to monitor development and growth of the sector and also control the new products that are coming into the ecosystem in such a way that all new products meet the regulatory requirements, “Aina further said.
Responding to the recent lifting of the ban for on-boarding Fintech customers by the CBN, Aina said the lifting of the ban was in the best interest of Nigerians and the Nigerian economy to encourage the growth of digital transformation across sectors of the Nigerian economy.
“CBN placed the ban in order to correct some of the anomalies in financial transactions among some Fintech members, and such challenges are bound to arise given the growth and size of FintechNGR. What CBN did with the ban was to provide regulatory guidance to financial transactions, which FintechNGR is part of.
CBN is becoming a lot more responsive in providing regulatory guidance that will protect investors’ funds. The steps taken by CBN will help sanitise the financial services industry and drive innovation among Fintech players, to further enhance digital transformation in Nigeria,” Aina said.
Speaking about the FintechNGR AGM, Aina said: “At this year’s AGM, all the motions raised were passed and members of the governing council, including the entire Fintech members are happy with the growth recorded by the management of FintechNGR. We have seen growth in the financials, growth in the activities of FintechNGR and we have seen growth in the impact that FintechNGR is making on the Nigerian economy and on the global economy.”
Speaking about the growth of FintechNGR, its Chief Operating Officer (COO), Dr. Babatunde Obrimah, said: “We have grown tremendously and we have established better collaboration with the regulators. The recent invite by members of the National Assembly to make presentations, speaks volume of the important roles that FintechNGR is playing in promoting growth of the Nigeria economy.”
Obrimah, who also spoke about the forthcoming FintechWeek, said this year’s FintechWeek would attract more participants from within and outside of the country.