The Central Bank of Nigeria (CBN) has released outlined guidelines dubbed the Digital Financial Services (DFS) for the digital quarter of the financial sector. The CBN intends to regulate the FinTech sector that is grown to experience nonchalant regulatory commitment whereby the Nigerian FinTech startups have continued acting up in the diaspora. The CBN has consented to regulate the FinTech sector for FinTech providers to be aware of the consumer knowledge and practices via the Digital Financial Services (DFS).
The CBN is optimistic to actualize sane productivity in the industry to have updated the policies that authorize its regulatory office to scold FinTech providers for shirking its regulations. The DFS represents the CBN’s consent to drive knowledgeable prowess that serves as consumer protection as well as a guideline to nurture FinTech providers into good standing and cordial corporate indulgence. The CBN regulatory system remains keen on innovating the FinTech sector towards growth that is accessible to the Nigerian population.
The CBN noted the significance of the DFS as a simplified policy that mandates FinTech providers to integrate the DFS as an embedded tool to “ensure consumer understanding, good treatment, and positive outcomes.” The DFS is a simplified policy posing as a toolkit or a scripted manual for FinTech providers related to the DFS practicals such as Merchants Banks, Deposit Money Banks, Payment Service Banks, etc.
The preview of the CBN’s Digital Financial Services guidelines;
FinTech awareness and literacy standards for FinTech service providers;
To update transparency and adequate disclosure on DFS;
Provision of developmental financial literacy and consumer protection materials on DFS;
To ensure an evidence-driven DFS approach;
Drive targeted DFS approach to the underserved population;
Standardized promotional provision for DFS;
Integrating DFS in financial educational programmers.
It is worth noting that the DFS policy is applicable for FinTech providers that have gained a license from the CBN before promoting their business to the market. Also, note that the CBN scold unlicensed FinTech institution differently via DFS.
The CBN regulatory system drafted the DFS policy to accelerate the indulgence and growth of the sector at large which explains why the regulatory institution is keen on driving awareness to educate FinTech providers in its sector to be upright.
Nonetheless, the CBN intends to differentiate the FinTech services from real-time financial services for users’ application of this financial instrument per user’s choice via the DFS. Although it still comes down to providing financial services — the channel differentiates it all. The CBN indulgences all FinTech providers to continue offering transparent services that also educate consumers about defaulting the CBN policies.
Still, Flutterwave consented to deny all allegations. Likewise, the CBN does not intend to scold the likes of Flutterwave or other related FinTech institutions but remains optimistic to drive a responsible practice via the DFS.
Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
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