Stanley Jacob, chief executive officer of Zest and Vice President of the Fintech Association of Nigeria, has said many fraud cases occurred because of regulatory non-compliance by fintechs and consumers.
“Most of the fraud cases we see are man-induced. They have been caused by non-compliance of regulators and the path of the consumers,” he said. “There is a need for compliance to standards, compliance to regulations and also, compliance to certifications, in the fintech industry. To be a player, you must be ready to comply with regulatory requirements, as well as legislative requirements.”
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He explained that compliance is very critical to assuaging the fears of end-users. “Compliance is becoming a critical element in making investment decisions as there is tension on the path of the consumers. Everyone is scared of losing their money. So, there is a need to assuage their fears by complying and avoiding situations that may rile them up.
Jacob highlighted that the issue of compliance cannot be bargained on. He said, “Compliance is normal. You do not have to like the rules to comply. If you want to be in the space, you have to adhere to the rules and regulations guiding the space.”
The Vice President of the fintech association noted that there is a need to hand-hold upcoming disruptors in the space. Here, he noted that beyond compliance, a lot of mentorships are needed for the up-and-coming generation.
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“Beyond compliance, it is also important to mentor these young disruptors. There is a need to handhold them to ensure that as much as they are stuff, they need to do it right,” he added.
