The financial system all over the world has been significantly disrupted by technology.

In Nigeria, the evolution of financial technology has not spared the banks who have now been forced to rethink their strategies.

More so, the regulators are also scouting for ways to curtail the excesses of innovation in the sector.

This is why the regulators in Nigeria, the Central Bank of Nigeria, has said it is adopting several strategies to cope with the challenges that come with these disruptive innovations in the financial system.

CBN’s Deputy Governor, Banking and Payment System Department, Dipo Fatokun told Finance Correspondents at a forum in Lagos on Saturday that the bank is working hard to deal with the new realities.

“We are seeing new operators with technology savvy, more efficient models, and collaborations among new entrants as well as established participants in payments systems in ways that exhibit regulatory challenges.

“To meet up with the challenges, some countries have adopted regulatory sandbox approach which is not totally novel to the CBN.

“We are however working to properly structure and formalize the sandbox arrangement in Nigeria by collaborating with some infrastructure providers to interact with FinTechs,” said Fatokun, who was represented by Assistant Director, Banking & Payments System Department, Taiwo Oladimeji.

Also Read:  Otedola Bridge Accident: See The Man Behind Viral Accident Prophesy

He said a well-functioning National Payments System (NPS) is crucial to the financial sector development as it increases confidence in the financial sector by ensuring a credible, reliable and efficient payment system.

He added that in recent years, the Nigerian payment landscape has experienced a lot of innovation, bursting with enterprise and reaching the unbanked and undeserved.

Speaking further, he said consumer protection, involves an entire range of laws, policies, structures, actions and behaviours designed to protect consumers from the abuse and exploitation of service providers.

“Consumer protection is critical in improving access and usage of financial products and services.  Ensures that increase access and usage of financial services, translate into benefits for the economy and individuals.

“It helps protect consumers from probable market abuse and exploitation. Helps consumers benefit from well informed decisions. Helps consumers appreciate how best to use and manage financial products and services,” he said.

Hope you found this story useful. Spread the love by sharing with your friends

Also Watch: