Fintech Disruption and the Future of Banking Regulations in Nigeria: Assessment of Challenges, Gaps and Reform Pathways

Abstract

Fintech innovations in financial technology has redefined customer expectations in banking. The traditional banking institutions are struggling to keep pace with the innovative solutions introduced by Fintech firms which enhance efficiency, accessibility, and user experience. Fintechs are leveraging on cutting–edge technologies such as blockchain, and big data analytics to deliver faster and more convenient financial services than conventional banks. It becomes imperative therefore to examine whether existing banking laws adequately regulate fintech innovations. This paper appraised Fintech disruption and the future of Banking Regulation in Nigeria and finds that though Fintechs in Nigeria are regulated by multi agency, there is a glaring intention by the government to control their activities through regulation. There are however enforcement issues, overlapping mandates and legal gaps that have constituted challenges needing attention. A doctrinal approach of research is adopted by examining statutes, case laws, existing literature on the topic This paper recommends among others, Public –private partnership between the Government and some of these companies for effective service delivery, stricter prudential oversight as is available in conventional banks, attractive entry requirements, including licensing package.