Central Bank of Nigeria's (CBN) governor Godwin Emefiele. / AFP PHOTO / PHILIP OJISUA
The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele has charged banks and different monetary establishments to be proactive concerning the emerging threats posed by monetary know-how (fintech) to keep away from disaster within the sector.
The apex bank chief, who reiterated the truth of threats posed by fintech, referred to as on members of the Chartered Institute of Bankers of Nigeria (CIBN) to be on the forefront of sensitisation within the banking business to search out lasting options.
Emefiele acknowledged this throughout the investiture of Uche Messiah Olowu because the 20th President and Chairman of Council of CIBN, over the weekend, in Lagos.
Represented by his deputy, in-charge of Economic Policy, Uche Nna, the banker stated: “In our industry we have common threat, the threat posed by fintech. I call on CIBN to up its ante. As far as advocacy is concerned, it should be your major focus, to find lasting solutions to the threats posed by fintech.”
Disclosing how fintech dangers could be mitigated, the immediate-past President of the institute, Prof. Segun Ajibola, stated banks and different corporate establishments should leverage on Enterprise Risk Management (ERM), a built-in method to managing dangers.
Ajibola, who acknowledged that modality for managing these new dangers needs to be outlined and deployed in banks, defined that when banks fail to hold on the method, the chance would crystallise, thereby inflicting a damaging influence on the bank, which can result in monetary disaster.
“The risk is actual, simply because the surroundings is rising globally. Banks ought to, every now and then, determine these dangers, evolve methods of managing and mitigating these dangers in order that when the chance crystallise, the damaging influence on such bank won't be too phenomenal.
“This is what we can't as a nation keep away from right this moment and that's the reason we're pleading and preaching EMR, which is able to assist to determine the issue earlier than they come up, allow you to police your system in a method that it's going to not grow to be susceptible to all types of dangers.
“Banks and corporate institutions should buy into them, invest and deploy them so that the negative impact of this risk on the banks, corporate institutions and Nigerian economy will not be devastating,” he stated.
Earlier in his acceptance speech, elated Olowu promised to enthrone ethics, professionalism and transparency within the banking business, stressing that the sector lacked correct skills-set, however assured of taking certifications on enterprise threat administration as main focus.
The new CIBN boss stated his tenure would focus on 5 key strategic areas, which embrace guidelines and requirements, expertise and competences, analysis and advocacy, know-how and sources, and model visibility.
“It is a new daybreak for banking in Nigeria as a result of we're taking part in on the international stage as chairman of worldwide banking training requirements board. So, it means we've to up our ante by way of proper data, ability and high quality to our stakeholders and now have proactive intervention insurance policies to the federal government and the judiciary.
"We are the managers of sources of cash, due to this fact, we must always deliver to bear, moral conducts in our habits,” he added.