Further to the partnership that exists between the Securities and Exchange Commission, and the Fintech Association of Nigeria, the Capital Market Committee, CMC at its 2nd meeting in 2018 held on Thursday, 9th August at the Federal Palace Hotel adopts the prayer from the Fintech Association for the CMC to set up a Committee to draw a Fintech Adoption roadmap for the Capital Market.
Ms. Mary Uduk, the Acting Director-General of SEC who chaired the CMC meeting in her opening remarks alluded to the growing influence of fintechs as she stated the need for the Capital Market to take advantage of the fintech offerings in moving the Capital Market forward. She equally emphasised the focus of the Commission on capacity building, knowledge sharing, advocacy and collaboration with relevant entities. According to her, “ the Capital Market needs to create an enabling environment that is attractive enough for fintechs to innovate as the Market should engage actively with the new trend in technology and provide the adequate regulatory framework for proper adoption of suitable technology”
In his presentation, the executive secretary of the Fintech Association, Seun Folorunso did state that the Capital Market is not an alien to the wave of technology that began in the 18th century as he mentioned that the dynamic nature of fintechs and diversity of its offerings underpin the perception of fintechs as friends or foes, partners or competitors as well as makes the holistic regulation of the nascent sector difficult worldwide. He said the various advantages the fintech innovation brings to business include the reduction in the cost of doing business, increased efficiencies, security, customer trust and enhanced regulatory compliance. He stated that the fintech helps the Capital Market in improving ways of accessing capital, trade execution, post-trade services, data, analytics and information services, and operations and technology leveraging on core market infrastructure, post-trade digitization, AI & analytics, investment technology and alternative funding platform most of which are built on AI & Robotics, Machine Learning, blockchain technology, regulatory technology amongst others.
Seun concluded by saying that for any sector to full benefits from the promises of Fintech, collaboration is very germane as he mentioned that the Fintech Association of Nigeria through its diverse membership base that cuts across all sectors of the economy, its extensive global network and affiliations coupled with its strong local presence and partnership provides a platform for collaboration on policy formulation, technology adoption, startup initiatives, cross-border policy, knowledge empowerment series and advocacy across the board. In his words “ the major emerging innovation trends within the financial services are increasingly global, rather than domestic in nature, therefore, financial services regulator must re-consider existing ways of working and collaborating, in order to balance potential benefits of innovation (for consumers and the financial sector as a whole) with traditional policy objectives, namely financial stability, integrity, financial inclusion, competition and consumer well-being and protection”
The presentation was followed by an interactive and discussion session on the propositions by the FintechNGR during which the prayer of the Association for the Capital Market to set up a committee to draw up a roadmap for fintechs adoption in the Capital Market was put to a vote call by Ms. Mary Uduk which was accepted by everyone in attendance.
The Capital Market Committee meeting was attended by the key executives of Securities & Exchange Commission , CEOs of the Nigerian Stock Exchange NSE, NASD OTC Securities Exchange, FMDQ OTC Securities Exchange, Central Securities Clearing System CSCS, Nigeria Commodity Exchange NCX, AFEX Nigeria Commodities Exchange, representatives of Pension Commission Pencom, Debt Management Office DMO, Central Bank of Nigeria CBN, Federal Inland Revenue Service FIRS, Corporate Affairs Commission CAC, Nigerian Deposit Insurance Commission NDIC, National Insurance Commission NAICOM amongst others.