Executive Director, Information Technology and Operations, Access Bank Plc, Mr. Ade Bajomo has called on regulators in the financial services industry to understand financial technology (FinTech) for better regulation.
FinTech is a new industry that uses technology to improve activities in finance. The use of smartphones for mobile banking, investing services and cryptocurrency are examples of technologies aiming to make financial services more accessible to the general public. FinTech generally aim to attract customers with products and services that are more user-friendly, efficient, transparent and automated than those currently available.
There are indications that FinTech products would soon hit the capital market as the Securities and Exchange Commission (SEC) said it would soon release guidelines in that respect.
Speaking in Abuja, Bajomo, who is also the Deputy President of FinTech Association of Nigeria (FinTechNGR), expressed the need for regulators to understand what FinTech is all about as that is where the world is moving to now.
Bajomo said regulators need to know what to regulate, how to regulate it, protect investors as well as drive commerce as if they don’t regulate this properly, it could hinder the growth of Africa.
He said: “We have to get into the digital agility and understand that the old way of doing things will not work in this digital age. Whether we like it or not, people will adopt digitalization, it is just inevitable. It is the simplicity that is driving this entire reforms. Our markets have to reposition to provide the proper regulations to facilitate entry and exit by these people which will lead to raising of funds, bringing of new products and driving the FinTech revolution.
“There exists over 5,000 FinTech companies globally. Startups are also springing up an increasing pace. FinTech hubs are proliferating globally in tandem with ongoing disruption in financial services. These hubs are all vying to become established FinTech centres in their own right, and want to contribute to the broader financial services ecosystem of the future.
“The future FinTech scape will be molded by regulatory bodies- national and international as they seek to mitigate the risks, and leverage the opportunities presented by FinTech” Bajomo stated.
He also stated that the SEC needs to ensure there are proper regulations that would enhance cyber security as it is the single biggest threat to the FinTech revolution.
“We have to get the issue of cyber security right as if we get it wrong investments and assets may disappear. SEC has shown a very good example by showing the readiness to want to participate in this industry and help it grow with relevant regulatory framework. That is a good step that will help both the industry and the investors and help grow our economy in the long run.