By Adedapo Adesanya
The Securities and Exchange Commission (SEC) has reiterated its commitment to drive financial inclusion, expand access to finance, tap into new resources for funding, and increase capital market participation in the country through financial technology (fintech).
The apex regulator in the capital market in Nigeria said it was considering this option due to the greater prospects in the global Fintech sector, which is currently growing at an incredible rate of 200 percent year-on-year and offering a lot of opportunities.
Acting Director-General of SEC, Ms Mary Uduk, during the official launch of the Fintech Roadmap of the Nigerian Capital Market at the Nigeria Fintech week held in Lagos, Tuesday, noted that collaboration was essential for the deepening penetration into the capital market.
She said in order to improve the penetration of investment products, there must be a strategic alliance amongst regulators and other stakeholders within the market.
“Going forward, I am confident that together, we can surmount the challenges inherent and seize the potentials of FinTech to transform people’s lives for the better.
“It is our belief that this policy document will broaden the robust conversation and engagements within the ecosystem, encourage responsible use of new technologies and digital finance in the capital market, influence increased international participation and cooperation, and also provide investors with more choices in the Nigerian capital market,” she said.
The acting DG further said the commission was looking to adopt regulatory and supervisory practices for orderly development and stability of the system and disclosed that it would do this while sustaining confidence and safeguarding the integrity of the market.
“In this way, our policies will facilitate the safe entry of new products, activities and intermediaries. “In addition, we will ensure that regulation does not stand in the way of innovation,” she stated.
As regards the challenges that have been brought up, Ms Uduk said, “The awareness of customers that their data might be prone to cyber-attacks could make them lose trust in digital channels until strong consumer protection frameworks are in place. These frameworks for digital financial services will be critical in building confidence for consumers.”
Looking at the opportunities available, she said that the surface of Fintech industry has been barely scratched and that the SEC was ready to capitalize on this.
“Through the Sandbox Assessment Form, the newly established Fintech & Innovation Division of SEC has made continuous efforts to engage and guide FinTech start-ups that seek to operate in the Nigerian Capital Market,” she noted.
Dipo Olowookere