Cyber Attacks On Financial Technology Firms, Misuse of Investment Data Worries SEC

Misuse of investment data in the financial technology (FINTECH) sector of the Nigerian economy, is of great concern to the Director General of the Nigeria Securities and Exchange Commission (SEC), Emomotimi Agama.

So also are the vulnerability of FINTECH firms to cyber-attacks, and the rise of unregulated practitioners a source of big headache to the sector.

She has as a result called for effective regulation of the sector to checkmate all these.

Agama who make the call recently, said it was the only way to ensure investor protection and guarantee stakeholders’ confidence.

The SEC DG spoke at the Nigeria Fintech Week 2024, which ran under the theme “Positioning Africa’s Fintech Ecosystem to Accelerate Inclusive Growth,” submitted that the preponderance of those challenges was hampering efforts to protect investor’s interest in the sector.

Highlighting initiatives of the commission to remain alive to its statutory duties, she said it had introduced a Regulatory Innovation Programme that would enable fintech firms to simulate their business models before full launch-out

“The initiatives have already yielded tangible results, with several fintech firms receiving approvals, and others in the pipeline undergoing thorough assessment.

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“Trust is the cornerstone of any financial system.  Smart regulation builds trust by ensuring that FINTECH companies operate transparently, protecting both investors and consumers,” he said

Role of Government to Growth of the Fintech sector

He said the government had a role to play towards the growth of the FINTECH sector, saying this centered on providing the enabling environment.

According to him, there were barriers to the growth the financial technology sector and the government needed to do remove these, essentially by harmonizing the regulatory frameworks.

The expected growth of the sector needed concerted efforts and a pooling of resources and assets, he said, and called for the collaboration of sector stakeholders, not just the financial technology companies, but the Nigerian academia, investors, civil society and financial institutions.

Issues that could be collectively tackled he added include, wealth creation and financial inclusion and skilling.