Members of the Association of Telecommunications, Information Technology, Cable Satellite Network Operators and Allied Services Employers' of Nigeria (ATICEN), have again reminded the Governor, Central Bank of Nigeria, Dr. Olayemi Micheal Cardoso, of the urgent need to establish the Technology Development Bank of Nigeria and the Business Development Bank of Nigeria, which had earlier been proposed to the apex bank.
In a recent letter to CBN, the President of the association, Adede John Williams, re-emphasised the need for the establishment of the financial institutions, adding that it will support the funding of startups and businessmen/women that need funds to grow their businesses.
According to him, "I sincerely seized this medium to urge the Governor of the
Central Bank of Nigeria (CBN), to put in his professional support in the quest for the proposed establishment of the Technology Development Bank of Nigeria and also the Business Development Bank of Nigeria. There has been ongoing agitations amongst the Fintech (Start-ups) and the organised private sector community in Nigeria for the establishment of development banks. With the establishment of these banks, start-ups, businessmen/women, captains of industries, entrepreneurs and Micro, Small and Medium Enterprises (MSMEs) development will get direct support and funding for their businesses, and the benefits of such financial development institutions are enormous."
Williams also advised the CBN governor to call for an all-inclusive stakeholders' engagement meeting in order to have a robust treatise regarding the roadmap for the Fintechs regulating development framework, and to discuss the downward review of the operational license fees for Financial Technology service providers (Star-ups).
He is of the view that recommendations from such stakeholders' engagement meeting will further unlock the potential of the Fintech subsector and heighten regulatory focus through firm policies framework, while promoting more financial inclusion in the country.
"We have a firm belief that the meeting will mitigate the potential risks associated with the Fintech ecosystem and encourage transparency, accountability, interoperability, collaboration with other financial institutions and open direct communications among the industry players and the regulators alike. It will equally give ways for proper monitoring and supervision of activities of Fintech companies in the country, ensuring end users protection, maintaining financial stability, financial inclusion and preventing financial crimes among other benefits associated with the Fintech ecosystem," Williams further said.
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According to him, the biggest challenge confronting the Financial Technology (Fintech) service providers subsector of the ICT industry as a whole is that the regulators and the policymakers do not have a better understanding that the accessibility of capital for Fintech deployment is very crucial.
"I hereby use this opportunity to urge the Governor of the CBN to try and formulate industry-centric policies that will further raise capital and encourage local and international investors for the Fintech start-ups operating in Nigeria, bearing in mind that raising capital or funding is the lifeblood of any startup that must grow big. I think it is very important to establish a Financial Technology Regulation Committee (FTRC), to oversee and manage the impute coming from the stakeholders for a better legal framework that will help to harness the digital economy and financial inclusion growth of the country.
"The regulators should recognise the fact that when formulating, implementing, and monitoring economic recovery policies, the voice of the stakeholders needs to be heard. This will require putting in place a professional innovative approach that will harness the potential of new technologies and proffer digital ideas for effective transformation and also enhance public-private sector dialogue to streamline the engagement of all essential actors," Williams further said.
