The need for banks and Financial Technology (FinTech) companies to deepen the banking sector through improved product and service offerings was a major point of discussion at the FirstBank FinTech Summit 4.0 virtual conference held recently in Lagos.
FirstBank, a leading Tier-1 bank also provided opportunity for financial sector regulators, banks and FinTech companies to discuss way forward for digital payment and financial inclusion, while looking for areas for collaboration.
The programme with the theme: “How Blockchain and Artificial Intelligence will Disrupt FinTech in Nigeria”, was a perfect opportunity to get knotty issues around digital payment resolved and discuss opportunities digital payment presents to the financial sector and economy.
Speaking at the event, Central Bank of Nigeria (CBN) Director, Payment System Management, Musa Jimoh said the apex bank is already implementing its open banking regime policy that would require banks to open their account base to Fintechs to bring more people into the financial system.
He said such data exchange will also increase access to financial services and provide better services to customers. He said the directive was in line with the apex bank’s five- year vision and open banking regime policy that would require banks to open their account base to Fintechs to bring more people into the financial system.
Jimoh described Fintechs as technology-enabled innovation in financial services that could result in new business models, applications, processes or products with an associated material effect on the provision of financial services.
Fintech firms like Quick-teller, MoniDey, Baxi, PocketMoni, Unified Payments, Paga, Cellulant, to mention but a few are now part of the financial system, offering banking services to both the banked and unbanked within the population. The companies are helping consumers in bill payments, retail payments, airtime purchases and use of Unstructured Supplementary Service Data (USSD) transactions. They also collect payment from all spect rums of the population – whether banked or not.
Jimoh said the CBN is also boosting the use of artificial intelligence in banking, and promoting digital payment access all sectors of the economy. “We have also released the quick response -QR Code framework which is expected to help drive the ecosystem, and provide a central database that will promote financial inclusion,” he said.
Also speaking, Group Executive, e-Business & Retail Products, Chuma Ezirim, said FirstBank has already adopted the open data policy, and is partnering with Fintechs in getting more customers into the financial system. “We work closely with Fintechs, and our relationship with them is mutually beneficial. If you are a Fintech and you want to leverage on our data to get more people into the financial system, we will oblige you and ensure that whatever agreement we reach with you on your business idea is protected,” he said.
Speaking on the event, Deputy Managing Director, First Bank of Nigeria Limited, Mr. Gbenga Shobo said: “At FirstBank, we have been at the forefront of employing technology in the delivery of financial services in the country exemplified by our various products and services such as FirstMobile, USSD Banking services, FirstMonie Wallet, FirstMonie Agent Banking, FirstAdvance loans provisions.
“The 2020 edition of our fintech summit has built on the successes achieved in the last three editions. We welcome the panelists as we look forward to the shared knowledge which will be integral to deepening the continued growth of banking technology, especially its impact on the Gross Domestic Product of Nigeria and the continent at large,” he added.
The CBN recently promoted the use of regulatory sandbox which is a formal process for firms to conduct live tests of new, innovative products, services, delivery channels, or business models in a controlled environment, with regulatory oversight, subject to appropriate conditions and safeguards. This would enable the bank stay abreast of innovations while promoting a safe, reliable and efficient Payments System to foster innovation without compromising on the delivery of its mandate.
He said the CBN has already released a framework that defines the establishment, rules and operations of a Regulatory Sandbox for the Nigerian Payments System in order to promote effective competition, embrace new technology, encourage Financial Inclusion and improve customer experience, with a view to engendering public confidence in the financial system.
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