By Modupe Gbadeyanka
Some experts in the financial technology (fintech) industry in Africa recently provided valuable insights into the complexities of regulatory compliance at a webinar put together by Digital Jewels in collaboration with the Africa Fintech Network.
At the event themed Navigate and Comply with Regulations with Ease through International Standards and Industry Frameworks: Fostering a Culture of Transparency and Accountability, the speakers, including the chief executive of Interswitch Group, Mr Mitchell Elegbe, advised companies to endeavour to always be ahead of the regulator to avoid sanctions.
“Back in 2002, we faced significant challenges in gaining trust as a payment company in Nigeria. It was critical for us to be ahead of the curve with compliance and governance to build trust with both customers and regulators. That decision ultimately saved us and allowed us to grow into what we are today,” Mr Elegbe remarked.
He also appreciated Digital Jewels for helping Interswitch adopt global best practice standards, which significantly improved their operational efficiency and security.
On his part, the chairman of the Association of Fintechs in Kenya, Mr Ali Hussein Kassim, noted that Kenya and East Africa still lag behind in adopting global best practices despite being pioneers in mobile money and financial inclusion.
“The most interesting tech engagement and evolution will be the meshing of regtech and subtech so that we don’t have these humongous reporting structures every month to policymakers and regulators. It can be real-time.” He said, adding that this could allow for more agile compliance processes, benefiting both fintech companies and regulators.
The CTO of Digital Jewels, Mr Tokunbo Taiwo, outlined the operational challenges that fintech organizations face and stressed the importance of regulatory compliance as a key driver for growth.
“Fintech in Africa is growing at an unprecedented rate, ranking in the top 10 globally and third in Nigeria. A young, urbanizing population fuels this growth, increased digital penetration, and the post-COVID acceleration of digital services,” he stated, emphasising the importance of frameworks like ISO 27001 and PCI-DSS, which allow companies to create a unified compliance system that satisfies both local and international regulatory requirements.
On her part, the chief executive of Digital Jewels, Ms Adedoyin Odunfa, stated that, “International standards can help fintechs comply with ease,” pointing out that, “Ignorance is not an excuse under the law, so, fintechs must stay informed and ahead of the regulations they need to comply with.
“Don’t wait for the regulator to catch up with you. Being ahead of regulation is not just about compliance—it is about positioning yourself competitively in the market.”
Adedapo Adesanya
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