NDIC promises to insure Fintech depositors

Umaru Ibrahim

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THE Nigeria Deposit Insurance Corporation, NDIC, has said that it is working to enhance its framework towards protecting depositors from dangers that could arise from emerging Fintech solutions. Umaru Ibrahim, managing director, NDIC, says that he believes that Fintech solutions are catalysts for improving financial inclusion in Nigeria.

Speaking at a workshop for members of the Finance Correspondents Association of Nigeria, FICAN, in Kaduna, Ibrahim noted that the emergence of Fintech 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 also partner with other regulatory authorities such as the Securities and Exchange Commission as well as the Nigerian Communications Commission, NCC.

“That is because each and every one of us has a role to play in the licensing and supervision and regulation of fintech. We would continue to develop and improve your knowledge and skills so that you are up to date in 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 so that the public remains aware and protected.

“There are a lot of issues around consumer protection. As you know even, without the emergence of complicated products and services and channels of financial intermediation such biotech, even to day-to-day ordinary transactions between customers and banks,” he said.

According to Ibrahim, the corporation had in recent times gotten numerous complaints and this has prompted them to further enhance their understanding of the fintech sector. “We do have hundreds if not thousands of complaints every now and then, either about ATM-related frauds or PoS-related frauds or excessive bank charges or excessive interest charges, etc.

“Almost on regular bases bank customers either are genuine, others may not be so genuinely. So all of us have a responsibility to continue to be sensitive and educate the millions of ordinary depositors of this country. So that we can enhance and step up depositor protection awareness programmes and also continue to support the emergence of more stable and prosperous banking systems. Without the confidence of depositors and the confidence of the customers, there will be no banking system.

“Managing financial system risks requires collaboration. Financial system instability increases the volatility of asset prices and investor behaviour, leading to deteriorating credit conditions, increased costs to firms and households, and potentially the collapse of the payment system. There is increasing evidence that fintech innovations have many advantages for businesses and customers.”

– Nov. 13, 2020 @ 15:45 GMT |

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