Digital Services Have Created Cheaper Banking Solutions, Says FITC CEO

Ugo Aliogo

The Managing Director/Chief Executive Officer, FITC, the innovation-led and technology-driven knowledge institution, Chizor Malize, has said the advent of digital financial services has created faster, more efficient, and typically cheaper banking solution compared to traditional financial services. Malize stated this recently in Kigali, Rwanda, when FITC hosted its flagship risk-based supervision (RBS) for Fintech programme to enhance stability and stimulate growth in the financial sector, as part of efforts to continuously equip the financial services and other sectors with the invaluable knowledge needed to navigate complex and dynamic regulatory supervision practices in the fintech space.

“Technology continues to change the face of the financial services industry. The advent of digital financial services has created faster, more efficient, and typically cheaper banking solution compared to traditional financial services. Many Fintechs have experienced a surge in demand as the customer banking habits changed in the COVID-19 era. Prior to the outbreak of the pandemic, it was clear that FinTech would play a pivotal role in financial services going forward. COVID-19 has undoubtedly accelerated that process,” Malize stated.

According to her, RBS for Fintech is the leading approach to regulatory supervision of Fintech’s globally, disclosing that to ensure safety, soundness, and financial stability within this evolving industry in the financial services sector, central banks in Africa need to build strong regulatory framework for supervising Fintech development within the African financial system.

“We currently have about 576 Fintech companies, enablers, funding partners, as well as numerous key stakeholders such as banks, telcos, and even governments. Many of our local start-ups have gone on to receive various funding and support, and others have gone to become global players and even Unicorns. It is therefore, important to up-skill and retool the skillsets of bank supervisors and other players in ensuring they are well equipped to adequately regulate and supervise the evolving Fintech firms in their countries,” she said.

The FITC boss explained that the programme presented a transparent and credible mechanism for Fintech regulators to provide all-inclusive, wide-ranging, and strategic approach to supervision of Fintech by approaching regulation from a structured system perspective that assesses risk exposures and gives priority to the resolution of risk.

Malize noted that the African financial service sector ecosystem is awash with so many innovators and disruptors crisscrossing borders, challenging old habits, creating new thought processes, setting new standards, and diffusing talents across all sectors.

Fintech is the disruptive technology driving start-ups and revolutionizing banking, payments, and insurance in today’s interconnected and competitive financial world.

The programme, which is one of FITC’s intervention in the growth and development of the Fintech sub sector through increased knowledge content that fosters industry and regulators understanding and collaboration needed to drive and stimulate the industry’s growth, is part of the recommendations from FITC’s last FinTech Conference, TechNovate 2021, which recommended deeper learning, engagement and collaboration that would help advance the industry.

The five-day event themed: ‘Risk Based Supervision (RBS) for FinTech’ kicked off on Monday, February 21, 2022, and ran till Friday, 25, in Kigali, Rwanda.

The event, which is one in a series of several offshore programmes to be organised by FITC this year, attracted participants from across Sub-Sahara Africa, from the Fintech regulators, FinTech companies, enablers, funding partners, banks, telecom companies, government parastatals, as well as numerous other key stakeholders who are involved in monitoring operations and safeguarding their stakeholders’ interests.

The FITC RBS programme presented a great opportunity for participants to be updated on key issues that will determine todays and future Fintech operations and performance including corporate governance, disruptive technology, macroeconomics, and geopolitics.

At the end of the programme, participants were be able to identify the most vulnerable areas and risks associated with Fintech operation, discover how to entrench financial stability into Fintech industry, apply key principles to building supervisory framework for Fintech as well as apply RBS tools and concepts in drafting supervision plans and performing supervisory activities for FinTechs.

Participants also acquired proficiency in using RBS approach to Fintech regulation and gain knowledge to build a viable framework for Fintech supervision.

Equally, the distinguished faculty for the programme shared their experiences on some critical topics and subject matters including Introduction to Financial Technology; Understanding Fintech Categories; Key Players in the Fintech Ecosystem and their Roles Introduction to Risk Based Supervision for Fintech.

FITC is a world-class innovation-led knowledge and professional services firm providing cutting edge Learning, Advisory and Research Services to clients in the Financial Services and other sectors, within and outside Nigeria.

Established in 1981 as a non-profit organisation limited by guarantee to provide capacity building and serve as a knowledge hub for the Nigerian Financial Services Sector. FITC is owned by the Bankers Committee, CBN, NDIC, and all deposit money banks in Nigeria.

For four decades, FITC has been at the forefront of innovative knowledge offerings designed for an array of C-suite executives, directors of banks and other financial institutions. Leveraging on international Faculty and partnership, FITC has led the knowledge space in delivering high valued capacity building solutions for Board Directors and C-suites.

FITC is a recipient of the International Federation of Training & Development Organisations (IFTDO) ‘Change Agent in Learning and Development in Africa’ Award, 2020 Business Excellence Award (The BIZZ Award), 2020 Strategy Innovation & Change Award, The International Business Excellence (IBX) Award, and the 2021 Winner of Global Business Excellence Award among others.