NDIC moves to curb rising fintech-induced risks in financial sector
Nigeria Deposit Insurance Corporation (NDIC) has stated that it is effectively collaborating with relevant stakeholders to manage risks arising from the growing adoption of financial technology (fintech) in the financial sector. At the 2021 retreat organised by the NDIC in Lagos, last week, Chairman of the board, Ronke Sokefun, said while banks are rapidly employing fintech to innovatively deliver financial products and services, the nature and scope of banking risk are significantly increasing with the adoption of fintech. According to her, development in fintech continues to open up new opportunities for the banking system, which creates additional risks. Represented by a member of the board of directors, Adewale Adeleke, she pointed out that risks had increased significantly as the need for fintech accelerated during the pandemic to minimise human contacts. She noted that the corporation had put in place mechanisms that continually improve the skills of its staff and equip them with relevant tools for effective supervision of risks emerging from fintech, new technologies and other innovations. Managing Director/CEO, Bello Hassan, said the corporation was committed to strengthening the deposit insurance framework, providing timely support to insured institutions as and when required, implementing faster resolutions of problem-insured institutions and assisting the monetary authority in its efforts at promoting stability in the nation’s banking system.
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