In order to encourage more innovation in the payment system, the Central Bank of Nigeria (CBN) is putting in place a Collateral Management Regime (CMR) to regulate the activities of fintechs and other technology start-ups in the country.
The Director, Payments System Management Department (PSMD), Sam Okojere, who represented the Governor of the CBN, Godwin Emefiele, disclosed in his keynote address at the inaugural Lagos Fintech Week in Lagos, that the, “CMR is being developed in line with on-going efforts to evolve a robust collateral management regime which will be proportionate to transactional level of participants within the payment system”.
According to him, the consequences of the new regime are that both incumbents and new entrants will operate without unnecessary collateral burden.
In his remarks, the Chief Executive Officer, Xpress Payment Solutions, Oluwadare Owolabi, noted that as a brand the focus of the company was to provide end-to-end experience, and smarter way of doing things for clients.
“All that we have put together is to ensure we give you a product that will enable you to improve on your processes, because the experience the customers have with us determines the trust. We seat with our clients to procreate. Procreating means we come to you and understand your processes, it is about layering your business on payment,” he added.
Owolabi, who was represented the Group Head, Switching and Terminal Service, Oluwatoyin Albert, noted that fintechs have been able to innovate, collaborate and ensure that there are products that meets the needs of the consumers, because of changing behavioural patterns.
Also, a fintech lawyer and partner, Private Equity Capital at the chambers of Aluko and Oyebode, Oludare Sembore who also spoke at the event, said: “The Nigerian approach to fintech regulation is somewhat similar to the United States and South Africa. Fintech in these countries are not governed by any specific legal framework, as the regulators are currently taking steps to understand the concept.”
He added that the current Fintech landscape in Nigeria is largely regulated by circulars and guidelines published by the CBN and a host of existing regulations that apply to “traditional financial service institutions.”