As strange as it may sound, the apex monetary authority in Nigeria -- the Central Bank of Nigeria (CBN) -- is considering financial technology (fintech) as a threat to the banking industry.
In a report by Punch, the CBN Governor, Godwin Emefiele who was represented by the Deputy Governor, Economic Policy Directorate, Okwu Nnana at the investiture of the 20th President of the Chartered Institute of Bankers of Nigeria (CIBN) claimed that the banking industry has a common threat -- fintech.
The term fintech, according to Investopedia, can apply to any innovation on how people transact business, from the invention of digital money to double-entry bookkeeping.
Furthermore, Nnana also called on the bankers' institute to be at the forefront of the sensitisation of the banking industry on the real threat posed by fintech in the industry.
While highlighting the challenges facing the banking industry, the new CIBN President, Uche Olowu listed regulations, disruptive models as well as technology among others.
The irony is that the financial inclusion drive of the apex bank over the years has been riding on the potentials of fintech solutions that are helping with onboarding the unbanked population.
And some Nigerian banks have also been serving their customers through fintech solutions. The importance of digital revolution in the financial sector is non-arguable.
Electronic-banking is allowing bank customers, irrespective of their status, to carry out bank transactions without the need to visit a bank branch. And there are also some other importance of fintech both to the customers and the banks as well.