Across the globe, data and information determine how, where and with whom people interact, as well as how business is conducted. It is on this premise that at the just-concluded RegTech Africa 2023 conference in Lagos, experts in both financial and technology sectors stressed the importance of articulating data-driven policy for improved security and even development.
With the theme, ‘Elevating National Policy on Financial Inclusion, Consumer Protection and Cybersecurity’, experts from both public and private sectors, canvassed the need for proper data management.
Welcoming participants to the two-day event, the Chief Executive Officer and Publisher of RegTech Africa, organizer of the conference, Cyril Okoroigwe, commended the digital evolution of the financial services sector in terms of its increasing changes with the move towards technology to build delivery channels.
Okoroigwe, who noted the challenge of cybercrime, which has become a key concern that threatens and hinders consumer trust and other global advances in the financial sector, recommended that harnessing the power of artificial intelligence, blockchain technology and regulatory technology will help reduce financial risks, as well as increase regulatory compliance and stamp out laundry and fraud. All of which he stated contribute to an estimated amount of $2 trillion yearly loss for the global economy.
He further noted that the conference would supervise how the national government in neighbouring countries is raising the bar in the implementation of policies and strategies intending to set innovative standards for risk management that aims at clarity and prosperity of the populace.
The Director-General, the National Information Technology Development Agency (NITDA) Kashifu Inuwa Abdullahi, represented by Dr. Usman Abdullahi in the agency, said the technology development agency is pushing for the protection of consumers while using technology services, saying that data protection has become a critical issue in Nigeria and across the globe.
Abdullahi said the agency is partnering with operators on data privacy and consumer protection, which involves local and international storage of consumer data.
According to him, NITDA, which played a key role in the drafting of the cybercrime act in 2015, is pushing for a secure and resilient economic environment.
From a private sector perspective, the Chief Executive Officer, Centbee, Lorien Gamaroof, said payment regulation is vital for financial stability, minimising risks, preventing disruptions, protecting consumer interests, fraud and unauthorised transactions.
Gamaroof noted that global payment regulation, which is cross-border payment regulation, is essential. He highlighted that payment regulation is about enabling people and crucial technologies, adding that big data analytics unlocks valuable insights from large volume data.
While canvassing on the importance of biometrics for securing identification for credit transactions, he said AI could be used for simplified information. He stressed that AI will be a great tool in detecting data that will help in curbing money laundering and other frauds, adding “regulators are not just the police, they are the enablers also.”
Speaking on a sub-theme: ‘Track: payment modernization & emerging technologies,’
Senior Suptech Specialist, Cambridge Centre for Alternative Finance, Dr. Juliet Ongwae, said Suptech focuses on machine executable regulation and competition monitoring, adding that 71 per cent of financial authorities have adopted it as of 2022.
As a panelist, CEO, Precise Financial Services, Dr. Yele Okeremi, said big tech is stronger than the government of several nations because of the information they have about consumers. He further urged regulatory bodies to work together with big tech to enhance payment in Africa.
Stating that big tech stands on technical, social and legislation advantage, Okeremi reiterated that Africa needs to have to enable regulation to help them function regionally.
Speaking on the panel topic Data and Policy Decisions: Harnessing the power of RegTechs, CEO Global Voice Group, James Gabriel Claude, made a case for data integrity and harmonisation in Africa, highlighting the Estonian use case where they have public infrastructure on the back to support data sharing between different institutions.
Representing the Executive Vice Chairman of NCC, Prof. Umar Garba Danbatta, Deputy Director, Digital Economy of the Commission, Mrs. Freda Bruce-Bennett, delivered a speech titled, “Elevating National Policy on Financial Inclusion, Consumer Protection and Cybersecurity: Telecommunications Regulator Perspectives,” said the commission, which was established under the Nigerian Communications Acts 2003, is charged with the responsibility of developing the communications sector, protection of the rights and interests of service providers, as well as consumers.
Danbatta noted that the NCC plays a crucial role in expanding the frontiers of financial inclusion in Nigeria, adding that communication technology remains the best enabler for expanding financial inclusion in Nigeria.
In recognition of this role, Danbatta said NCC supports government drive and initiative towards promoting a digital economy that will support national development and economic diversification.
According to him, NCC plays a key role in the development and success of financial inclusion and digital services, which ride on Communications, infrastructure and technology.
Given this role, the NCC EVC said the Central Bank of Nigeria, has issued Mobile Money payment service licenses to some mobile network operators to enable them to take mobile financial transaction services.
“The commission is therefore saddled with the responsibility of ensuring the protection and promoting the means of continuance through safe and secured networks services,” he stated.
The NCC boss noted that the NCC is guided by National Financial Regulations Strategy 2022, 3.0, under the policy developed by the CBN, which shows the three key roles expected of the NCC.
“The key roles are; to expand coverage of mobile and data networks in underserved areas; ensure adequate continual protection and responsible digital financial practices, ensure security and protection of network service and customers,” he stated.
Danbatta noted that the NCC, through the implementation of initiatives, projects and effective stakeholder collaboration and policies led broadband penetrations from six per cent in 2015 to 48.29 per cent in March, 2023, among others.
