Fintechs are disrupting banking sector operations – CBN Governor, Godwin Emefiele

Governor Godwin Emefiele has said that financial technology (fintech) companies are disrupting operations of the banking sector.

Emefiele disclosed this at the International Association of Deposit Insurers (IADI) Africa Regional Committee (ARC) technical assistance workshop in Abuja on Tuesday October 4.

The CBN governor who stated that there is urgent need for the banking industry regulators to gird their loins, described the developments as “very disturbing”, adding that it has continued to disrupt traditional ways of offering financial services in the banking landscape.

Emefiele also said that Fintechs who want to be deposit-taking institutions should come forward with N25 billion and become a bank.

He said;

 “We will ensure that we can put in place strong regulatory framework and practices that should help nip in the bud, the unfortunate incident that may happen as we try to allow the growth of fintechs in Nigeria.

“Fintechs who want to be deposit-taking institutions should come forward and become a bank, bring N25 billion and be a bank.

“Our deposit insurance system (DIS), as a component of the financial safety-net arrangement, is the risk-minimiser model and has been very effective in the discharge of its mandate. The CBN and NDIC represent key components of Nigeria’s financial safety-net arrangement.

“That partly explains why we have been able to successfully resolve the series of financial crises that confronted us with satisfying results.

“It is instructive to mention that the CBN and NDIC have been able to deal with the emerging crisis in the nation’s banking system. The 2009 banking crisis, 2004 banking consolidation exercise and their subsequent resolutions, provided a reference point of the benefit for effective collaboration between the central bank and deposit insurer.”