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, a development that will encourage more innovation in the payments system.
The Director of Payments System Management Department (PSMD), Sam Okojere, who represented the Governor of the CBN, Godwin Emefiele, said “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”.
In his keynote address at the inaugural Lagos Fintech Week in Lagos, Emefiele disclosed that the consequences of the new regime will ensure both incumbents and new entrants will operate without unnecessary collateral burden.
The Chief Executive Officer of 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.
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 meet 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.”