Get Guardian on GoogleAs Nigeria’s financial services sector undergoes rapid digital transformation, FairMoney Microfinance Bank has reaffirmed its commitment to compliance as the cornerstone of consumer trust.
Speaking on the evolving role of compliance in tech-enabled banking, Head of Compliance at FairMoney Microfinance Bank, James Edeh, emphasised that compliance is no longer a back-office function but a visible driver of confidence in digital finance.
“Customers may not see compliance when they transfer funds, open accounts, or apply for loans,” said Edeh. “But behind every transaction lies a framework of controls that safeguard customer data, monitor transactions, ensure fair product communication, and provide credible complaint resolution. Compliance is the invisible engine that sustains trust.”
Nigeria’s financial inclusion journey illustrated both opportunity and responsibility. According to EFInA’s 2023 Access to Financial Services Survey, formal financial inclusion rose from 56 per cent of Nigerian adults in 2020 to 64 per cent in 2023, though 26 per cent remain excluded. Technology has expanded access to payments, savings, and credit, but with this expansion comes heightened expectations around transparency, fairness, and responsible conduct.
Edeh noted: “Compliance must be embedded at the very start of product design and service delivery. It is not about slowing innovation but ensuring that innovation develops within a framework that protects customers. Decisions about data, lending, communication, and complaints management all carry consumer protection implications.”
Nigeria’s regulatory landscape continues to evolve, particularly in digital and non-traditional lending. New frameworks emphasise transparency, fairness, responsible conduct, data protection, and consumer redress. For fintechs and microfinance banks, this presents both an obligation and an opportunity.
“Financial innovation must develop alongside appropriate protections,” Edeh explained.
“Institutions that prioritise compliance will not only meet regulatory requirements but also build lasting customer confidence.”
Beyond prudential regulation, FairMoney said it places consumer protection at the heart of its operations. This includes transparency in product communication, responsible lending practices, data protection and privacy safeguards, and effective complaint resolution channels
It stressed that these commitments align with regulatory requirements from the CBN and, where applicable, the Federal Competition and Consumer Protection Commission (FCCPC).
According to the MFB, access to credit remains a critical component of financial inclusion.
Technology enables lenders to serve a wider range of customers, but increased access must be accompanied by responsible conduct. Customers should receive clear, relevant, and understandable information about terms, conditions, charges, and product features.
“Customers must have confidence that their information will be treated appropriately and that credible channels exist to address concerns,” Edeh stressed. “Responsible lending is not optional; it is central to sustainable financial inclusion.”
