The Securities and Exchange Commission (SEC), said on Wednesday that it would release regulations that would guide FinTech investments in the nation’s capital market.
The capital market regulator explained that the move was in furtherance of its desire to transit towards a technology-driven capital market.
The commission’s Acting Director General, Ms Mary Uduk who made these disclosures at a lecture in Abuja, pointed out that the commission was interested in investments that Nigerians were making, especially with the advent of digitalization.
She explained: “If we will regulate this market and understand what is happening we need our staff to understand the rudiments of FinTech. Very soon the whole world will move to technology for regulation. Other jurisdictions have already gone far into it with some of them already amending their rules in that direction.
“The International Organization of Securities Commissions (IOSCO) is on it and there is a lot on it already all over the world and we can’t be left behind. We are very much interested in some of the most active areas of Fintech innovation like blockchain technology, cryptocurrencies and how they affect investors”, the regulator added.
Uduk noted further that as the regulator of the capital market, it was the responsibility of the SEC to find out how such investments were being deployed and if they met set standards because when investors lose money they will come back to the SEC.
According to the SEC boss, that is why the commission is seeking to understand what FinTech is all about to enable us regulate the market properly.
While alluding to the growing influence of Fintechs in the capital market, Uduk, urged investors to take advantage of Fintech offerings in moving the Capital Market forward. She equally emphasized the focus of the Commission on capacity building, knowledge sharing, advocacy and collaboration with relevant entities.
Uduk recalled that during the last Capital Market Committee (CMC) meeting in Lagos, the Committee agreed to set up a Committee to draw a Fintech Adoption roadmap for the Capital Market.
This is even as she announced Bajomo as Chair of the Capital Market Committee on Fintech Roadmap for Capital Markets in Nigeria,
In his presentation, the Executive Director, Information Technology and Operations of Access Bank as well as Deputy President of FinTech Association of Nigeria (FinTechNGR), Mr Ade Bajomo, canvassed the need for regulators to understand what FinTech is all about as that is where the world is moving to now.
He said that regulators needed to know what to regulate, how to regulate it, protect investors as well as drive commerce as if they don’t regulate this properly, it could hinder the growth of Africa.
Bajomo said: “We have to get into the digital agility and understand that the old way of doing things will not work in this digital age. Whether we like it or not, people will adopt digitalization, it is just inevitable. It is the simplicity that is driving these entire reforms.
“Our markets have to reposition to provide the proper regulations to facilitate entry and exit by these people which will lead to raising of funds, bringing of new products and driving the FinTech revolution”, he added.
He pointed out also that the SEC needed to ensure there were proper regulations that would enhance cybersecurity as it is the single biggest threat to the FinTech revolution.
Financial Technology also known as FinTech describes a business that aims at providing financial services such as personal financial management, insurance, payment etc. by making use of software and other modern technology.
In his remarks, President FinTechNGR, Dr Segun Aina, disclosed that “FinTech has supported the banking industry tremendously and the capital market will also greatly benefit from it. In every aspect of financial services, FinTech important and that is why we are driving the process in Nigeria”.