Co-founder, Kiakia, Olajide Abiola has said adoption of USA’s strategy of National Bank charters to online lenders in Nigeria will hinder development of the technology driven financial services.
The strategy that allows online credit companies and paperless lenders to get federal charters to do business nationwide in United State was described as what is not matured to have in Nigeria yet.
Abiola who opined in his words said that adopting and implementing such charter will be an overkill of a sector that is still in incubation in Nigeria.
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“Digital literacy and adoption of technology adoption is still low”
He maintained that once the country is able to get a critical mass of the adult population into the banked and digital bracket, we can begin to consider similar adoption.
Abiola stated that Central Bank of Nigeria must cater to the activities of Non-Deposit lenders as Central Bank of Ghana has done, but what somehow conflict with the lender’s acts operated by the States
He however said that things can still be done in parallel, adding that some companies just want to lend out and not interested in taking deposits from the public.
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“In a situation when depositor’s funds are not involved, there should be limited regulation. The focus and priority of regulation will be to ensure that consumers are not exploited and abused”, he said.
In the same vein, Abiola also called on state governments to develop comprehensive and well-functioning regulatory system to regulate micro-lenders as against their current cavalier disposition.
He said that they should be actively involved in framing the regulatory systems for lending, relating to non-deposit lending, saying that it is what republics and economics that have taken global financial systems and technological leads are doing.
“Regulation of lending activities requires decentralization and I am glad the constitution of the Federal Republic of Nigeria enshrines that”
He pointed that deposit related financial services that involve credit services are solely regulated by the CBN and insured by the NDIC, an initiative that he described as what is ideal in protecting depositor’s fund.
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