By Chioma Obinagwam
Nigeria’s Securities and Exchange Commission (SEC) would soon come up with regulatory guidelines to oversee activities of investors in financial technology (FinTech) products in Nigeria’s’s capital market.
Acting Director General of the SEC, Ms. Mary Uduk who gave the hint at a Lecture in Abuja, noted that the guidelines was part of the commission’s effort to move the nation’s bourse to a technology-driven capital market.
According to her SEC was interested in investments in the capital market, especially given the spate of digitalization of business and investment processes.
“If we will regulate this market and understand what is happening we need our staff to understand the rudiments of FinTech. Very soon the whole world will move to technology for regulation. Other jurisdictions have already gone far into it with some of them already
amending their rules in that direction.”
“The International Organization of Securities Commissions (IOSCO) is on it and there is a lot on it already all over the world and we can’t be left behind. We are very much interested in some of the most active areas of FinTech innovation like block chain technology, crypto currencies and how they affect investors,” Uduk said.
The acting DG recalled that during the last Capital Market Committee meeting in Lagos, the Committee agreed to set CMC to set up a Committee to draw a FinTech Adoption roadmap for the Capital Market.
She said there was the need for the Capital Market to take advantage of the FinTech offerings to move the Capital Market forward, “adding that there was also the need to emphasized on capacity building, knowledge sharing, advocacy and collaboration with relevant entities.
“The Capital Market needs to create an enabling environment that is attractive enough for FinTechs to innovate as the Market should engage actively with the new trend in technology and provide the adequate regulatory framework for proper adoption of suitable technology and that is one of the reasons why we have invited FinTech here today for this presentation,” she said.
Executive Director Information Technology and Operations of Access Bank as well as Vice President of FinTech Association of Nigeria (FinTechNGR) Mr. Ade Bajomo in his presentation said there was the need for regulators to understand what FinTech is all about as that is where the world is moving to now.
He 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.
“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 these entire reforms. Our markets have to reposition to provide the proper regulations to facilitate entry and exit by these people who 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,” Bajomo said.
According to Bajomo 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.
Financial Technology also known as FinTech describes a business that aims at providing financial services such as personal financial management, insurance, payment by making use of software and other modern technology.
FinTech generally aims to attract customers with products and services that are more user-friendly, efficient, transparent and automated than those currently available.
President FinTechNGR, Dr. Segun Aina said,“FinTech has supported the banking industry tremendously and the capital market will also greatly benefit from it. In every aspect of financial services, FinTech important and that is why we are driving the process in Nigeria.”
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