Read more about FinTech
Experts, governments and professionals began to advocate for more data-driven banking industry, especially data empowered by blockchain, Artificial Intelligence (AI) and the Internet of Things (IOT). To move ahead, it is expedient to define the term ‘Fintech’ for better understanding. The term is a portmanteau for ‘Financial Technology’ which is all about monetary (including gift cards and cryptocurrencies) transactions powered by technology. It can take several forms, ranging from apps, software, or a business that offers digital finance advisory, consulting and lending. Their services revolve around disrupting traditional mortar and clay banking institutions. The services majorly offered by FinTech-wired institutions include money transfer, investing, lending, crowdfunding, cryptocurrency, smart contract, peer-to-peer payments, amongst others. With rising issues associated with cybercrime, glitches in electronic payment and other checkbacks, FinTechs and the government seem to run at two opposing views. Further, many are ignorant of the frameworks that guide FinTechs in Nigeria. In this article, I’m going to do a rundown of these guidelines and regulations.
Central Bank of Nigeria Regulations
The nation’s apex bank is at the heart of regulating and controlling the finance of the nation through laws and guidelines. In the area of regulating the FinTech industry, it has implemented several guidelines, which include:- CBN Guideline on International Money Transfer Services in Nigeria, 2014
- CBN Regulatory Framework for Licensing Super-Agents in Nigeria, 2015
- Provide standards requirements for international money transfer service operations in Nigeria;
- State legitimate channels for offering international money transfer services;
- Create a working environment for international money transfer services to thrive in the country;
- State the minimum technical and modus operandi of various stakeholders in the international money transfer industry; and
- Broad guidelines for the execution of processes of international money transfer services, from start to finish.
Sign up to the Connect Nigeria daily newsletter
- CBN Guideline on Mobile Money Services in Nigeria, 2015
- CBN Guideline on Transactions Switching in Nigeria, 2016
- CBN Guideline on Operations of Electronic Payment Channels, 2016
- All ATMs shall be able to dispense all denominations of Naira.
- For deposit-taking ATMs, acceptable denominations shall be displayed by the deployer.
- All ATM systems shall have audit records of transactions to facilitate investigations, reconciliation and dispute resolution.
- CBN Guideline on Licensing and Regulation of Payment Service Banks in Nigeria, 2018
- CBN Regulatory Framework for Use of Unstructured Supplementary Service Data (USSD) Financial Services in Nigeria, 2018
- CBN Regulation on Electronic Payments and Collections for Public and Private Sectors in Nigeria, 2019
- Risk-Based Cyber-Security Framework and Guidelines for Deposit Money Banks and Payment Service Providers, 2019
- Regulatory Framework for Sandbox Operation, 2021
- Framework for Quick Response (QR) Code Payments in Nigeria, 2021
Got a suggestion? Contact us: editor@connectnigeria.com