The Central Bank of Nigeria (CBN) has identified the rising influence of Financial Technology (FinTech) firms in providing financial services to consumers as a big threat to banking.

CBN Governor Godwin Emefiele stated this in Lagos during the Chartered Institute of Bankers of Nigeria (CIBN) investiture of Uche Olowu as its 20th President/ Chairman Council.

Digital financial technology, or FinTech, and particularly the global spread of mobile phones, has facilitated access to financial services by hard-to-reach populations and small businesses at low cost and risk.

Emefiele said: “Banking has a common threat. The enterprise risk posed by FinTech is real and there is need to be at the forefront of sensitising the banking sector about the real threats posed by FinTech.”

The CBN boss, represented by CBN Deputy Governor, Economic Policy, Joseph Nnanna, said the apex bank would look into the threats posed by the FinTech to lender’s operations.

“The institute must not relent in bridging the knowledge gap among commercial, microfinance and mortgage banks. This is the time banks and the economy are facing cyber insecurity. The CBN will partner with CIBN to ensure that financial transactions are secured,” he said.

He called on CIBN to be at the forefront of sensitising bankers on the threat by FinTech. Emefiele said: “I also admonish the new president that you will remain focused and avoid omission risk. Do exactly what your predecessor has done; he reached out, he was a superb bridge builder. Up your ante as far as advocacy is concern. Advocacy should be your major focus, in addition to providing solution to the threat pose by FinTech.”

Olowu said the industry is contending with some challenges triggered by regulations, disruptive models and technologies.

He sees competition from FinTech and telecommunication firms as part of the issues the banking industry has to contend with.

“It’s a new dawn for banking in Nigeria because we are playing at the global stage.

‘’Findings by Nigeria Interbank Settlement System (NIBSS) showed that banking halls are getting less attractive to customers. Huge transactions now happen outside the banking halls, courtesy of rising influence of FinTech in taking financial services to customers.

‘’The NIBSS provides the infrastructure for automated processing, settlement of payments and fund transfer instructions between banks and card companies.’’

NIBSS Managing Director, Adebisi Shonubi, said banks-branch transactions had dropped by 25 per cent in the last one year, as more customers embrace electronic payment, especially Unstructured Supplementary Service Data (USSD) technology platforms.

Banking transactions are moving towards zero human interactions, saving cost and time for customers. The USSD is a Global System for Mobile (GSM) communication technology now deployed by banks to offer transfer services to their customers using Android phone.

Platforms that have taken chunks of banks’ businesses and profitability are: Facebook, Twitter, LinkedIn, My Space, Tumblr, Instagram, Alibaba, Jumia, Konga, Supermart, Amazon, Square, Cellulant, Apple, Google, Visa and MasterCard.

Companies, such as Uber, Taxify and Airbnb, have developed radical business models that continue to surprise many institutions.

Secure online payments systems, such as PayPal and mobile payments and transfer solutions, are changing the ways in which payments for goods and services are made.

These firms are helping consumers to make payments, secure credits, and do things that banks consider impossible. They satisfy customers’ thirst for speed and variety, leaving banks struggling for customer loyalty.

Technology is rapidly reshaping financial services operations. Banks and FinTech companies have identified a shift in consumer behaviour towards digital channels. Rising acceptance of FinTech start-ups’ services by banks’ customers threatens lenders’ control of market space.

https://www.financialwatchngr.com/2018/05/23/rising-influence-of-fintech-big-threat-to-banks-says-emefiele/

This people want to start again. Do they want us to go backwards to the analogue era? Instead of fashioning out a better way to engage staffs, you are complaining about technology taking over. God help us

In fact, everything is a threat in this country including buhari

This is Goodnews for democracy

Meanwhile anyone that knows how to order from eBay.co.UK should pls contact me for urgent employment.. Whatsapp@ 07050284012

.

In no time the banks will be forced to offer real banking services thereby stimulating economic growth.

Time to fast track the creation of advanced technologies as antidote to these threats. The risks increase as more advancements are invented.

Well i call that breaking of banking monopoly



And it feeels gooooooood

Can someone elaborate on "Fintech" and how to invest in it right away?

.

Imagine the antidelluvian line of reasoning in an age such as this.

GEJ appointed this man CBN Governor

A travesty to National Financial Policy formulation and implementation...

Buhari and APC after screaming blue murder about monies transferred in the midst of the night from CBN have not for once accused the Governor because they are on the same side.

https://www.premiumtimesng.com/news/headlines/190306-exclusive-2015-polls-how-jonathan-govt-used-bullion-vans-to-cart-away-n67-2bn-cash-from-cbn.html

Fin-tech is rightly disrupting global finance and the best approach by Mr Governor is to hide one's head in the sand?

Na wah!

.

Can someone please pass the link below to Mr Governor?

https://www.forbes.com/sites/bernardmarr/2017/02/10/a-complete-beginners-guide-to-fintech-in-2017/

You have to discover your own FINTECH... Its an opportunity some of us have already taped into..

Lies. This is alarmist.


Fintech in Nigeria does not work without BANKS.

Have you blamed jonathan today...

abdulrazat:
Can someone elaborate on "Fintech" and how to invest in it right away?

Fin tech simply means financial technology.

Its not a coin or crypto.

Hope they are not planning to come up with some stupid regulations

Building a successful business─ whether it be online business or an offline investment─ demands so much discipline, extreme caution and proper risk management analysis.

You must have this at the back of your mind: every business is a risky venture, and to maximize profit, you must control your risk probabilities and minimize every possible cost.

In this article, I will be sharing what I may tag my life experience in business and how you can leverage on them when building your own business, and mistakes you should avoid when starting any kind of business.


Read: https://businessyield.com/starting-a-business/mistakes-start-up-entrepreneur/

pacodas:
Hope they are not planning to come up with some stupid regulations

You know how they are. They are MORONS.

It’s a new dawn for banking in Nigeria because we are playing at the global stage.

This statement please is this true ? Are Nigerian banks playing at a global stage under this administration?

obowunmi:
Lies. This is alarmist.


Fintech in Nigeria does not work without BANKS.

But worwotech does

Emefiele said: “Banking has a common threat. The enterprise risk posed by FinTech is real and there is need to be at the forefront of sensitising the banking sector about the real threats posed by FinTech.”

Check out how primitive our leadership​ is. Always against progress.
Emefiele is more concerned with protecting the banks than growing the economy and democratizing access to finance. Only time will reveal what antics this man and his godfather Jim Ovia have been up to in the Central Bank

No be una create cashless policy ?

Ehn ehn o...

Make him park well, I'm about to switch jobs to a Fintech company. Lemme enjoy before them chuk eye there...

But there's a lot of collaboration between fintechs and banks na... What's the CBN Guv'nor saying sef?

Hahnemann:
This is Goodnews for democracy

Meanwhile anyone that knows how to order from eBay.co.UK should pls contact me for urgent employment.. Whatsapp@ 07050284012

I can do that ....whatsspp link is on my sign"

Paylater and Co.?

Dacronym:
Paylater and Co.?

Yup!

software is eating the world - Marc Andressen.

From computer network to health care to finances to cars etc software is taking over. The future jobs will be handed to the IT guys.

its either you learn the tech or you become redundant. The time where all man needs to learn atleast 1 basic programming language to survive is fast approaching

The Bank shouldn't be so scared, they can always bridge the gap, they have the Public trust and the finance to undertake it. Most fintech startups struggle with funds which can leave them exposed to security flaws.

Them Banks can easily make quick transition to fintech, just like Wema banks "Alat"