Cyber Security Biggest Threat to FinTech Revolution—Bajomo
By Modupe Gbadeyanka
The biggest threat to financial technology (FinTech) revolution has been identified by the Executive Director of Access Bank Plc in charge of Information Technology and Operations, Mr Ade Bajomo.
According to the former senior staff of the Nigerian Stock Exchange (NSE), cyber security is the clog in the wheel of FinTech industry and regulators in the financial services industry must under this and FinTech as a whole for better regulation.
Mr Bajomo, who doubles as the Deputy President of FinTech Association of Nigeria (FinTechNGR), said during a forum in Abuja that regulators need 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.
According to him, the Securities and Exchange Commission (SEC) must ensure proper regulations that would enhance cyber security as it is the single biggest threat to the FinTech revolution.
“We have to get the issue of cyber security right as if we get it wrong investments and assets may disappear. SEC has shown a very good example by showing the readiness to want to participate in this industry and help it grow with relevant regulatory framework. That is a good step that will help both the industry and the investors and help grow our economy in the long run,” he said.
Mr Bajomo further 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 this entire reform. 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.
“There exists over 5,000 FinTech companies globally. Startups are also springing up an increasing pace. FinTech hubs are proliferating globally in tandem with ongoing disruption in financial services.
“These hubs are all vying to become established FinTech centres in their own right, and want to contribute to the broader financial services ecosystem of the future.
“The future FinTech scape will be moulded by regulatory bodies- national and international as they seek to mitigate the risks, and leverage the opportunities presented by FinTech.”
FinTech is a new industry that uses technology to improve activities in finance. The use of smartphones for mobile banking, investing services and cryptocurrency are examples of technologies aiming to make financial services more accessible to the general public.
FinTech generally aim to attract customers with products and services that are more user-friendly, efficient, transparent and automated than those currently available.