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NDIC tackles rising fintech-induced risks in financial sector

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NDIC

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.

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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.

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“We recognise and appreciate the fact that the National Assembly is a critical stakeholder in achieving our goals and objectives, and this is why this retreat is a vital step towards moving the Corporation forward to effectively carry out its operations and ensure the safety and stability of the financial system,” she said.

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.

He assured that NDIC would continue to engage and cooperate with the National Assembly through the House Committee on Insurance and Actuarial Matters to address issues that are germane to the efficient operation of the deposit insurance system in Nigeria and by extension the sustenance of the safety and stability of the nation’s banking industry.

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Chairman House of Representatives Committee on Insurance and Actuarial Matters, Darlington Nwokocha, said the National Assembly had commenced the review of the NDIC enabling act for possible amendment.

“We want to go through the entire NDIC Act to see the ones that are suitable and will suit our immediate environment and at the same time that will meet international best practice and insurance dictates. Anyone we find not suitable, we are going to do the needful by amending it accordingly,” Nwokocha said.

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