{"id":16262,"date":"2017-08-07T13:06:35","date_gmt":"2017-08-07T12:06:35","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=16262"},"modified":"2017-08-07T13:06:35","modified_gmt":"2017-08-07T12:06:35","slug":"cbn-fintechs-wont-usurp-banks-traditional-roles","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/cbn-fintechs-wont-usurp-banks-traditional-roles\/","title":{"rendered":"CBN: FinTechs Won\u2019t Usurp Banks\u2019 Traditional Roles"},"content":{"rendered":"

The Central Bank of Nigeria (CBN) has assured that Financial Technology (FinTech) companies will not take over the roles played by commercial banks in delivering services customers.<\/p>\n

Speaking at the Bi-Monthly Forum of the Financial Correspondents Association of Nigeria (FICAN) in Lagos at the weekend, CBN Director, Banking and Payments System Department , \u2018Dipo Fatokun said the demand for the services of FinTechs\u00a0\u00a0will continue to rise, even as they need commercial banks\u2019 to enable them operate effectively.<\/p>\n

He noted that the increasing roles of FinTech companies in the payment system will allow banks to focus more on their traditional roles of financial intermediation.<\/p>\n

\u00a0Stating that the need for collaboration between the FinTechs and banks will always continue to be on the rise, he said \u201cnone can displace the other. There will be more prominence for the FinTechs going forward.\u201d<\/p>\n

The CBN director explained that banks in developed world are now focusing on their core functions and leaving other roles to service providers. \u201cFinTechs have always been in existence, it is just that more prominence is being given to their roles. In some jurisdictions FinTechs are being allowed, or plans are under way to allow them connect to the central bank which, previously, was the exclusive preserve of the commercial banks,\u201d he said.<\/p>

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Continuing, he said: \u201cThe fear has always be there that FinTechs will take over the roles of the banks and that a time will come when there will be no bank. Fintechs are not licenced as financial institutions, they cannot take deposits, they can make payments out of bank accounts. They can only facilitate payments or make it easier but the banks will still continue to play a very big role\u201d.<\/p>\n

\u201cBanks provide hundreds of services outside of payments. They open Letters of Credit, give out loans and you can only give loans if you take deposits. They banks provide guarantee, either an advance payment guarantee or a performance bond for contractors. For you to do that you need to be a licenced financial institution,\u201d he said.<\/p>\n

According to him, there are numerous services that are provided by the banks that cannot be provided by the FinTechs adding that FinTechs have played a complementary role for the baking industry. Such roles, Fatokun said, have made it possible for banks to provide services at cheaper rates and also to get to the nooks and crannies where hitherto they will not be able to provide services.<\/p>\n

\n<\/p>","protected":false},"excerpt":{"rendered":"

The Central Bank of Nigeria (CBN) has assured that Financial Technology (FinTech) companies will not take over the roles played by commercial banks in delivering services customers. Speaking at the Bi-Monthly Forum of the Financial Correspondents Association of Nigeria (FICAN) in Lagos at the weekend, CBN Director, Banking and Payments System Department , \u2018Dipo Fatokun …<\/p>\n","protected":false},"author":6,"featured_media":14906,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[17],"tags":[36,2476],"coauthors":[2391],"class_list":["post-16262","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-news","tag-cbn","tag-fintechs"],"yoast_head":"\nCBN: FinTechs Won\u2019t Usurp Banks\u2019 Traditional Roles - National Wire<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nationalwire.com.ng\/sub\/cbn-fintechs-wont-usurp-banks-traditional-roles\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CBN: FinTechs Won\u2019t Usurp Banks\u2019 Traditional Roles - National Wire\" \/>\n<meta property=\"og:description\" content=\"The Central Bank of Nigeria (CBN) has assured that Financial Technology (FinTech) companies will not take over the roles played by commercial banks in delivering services customers. 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