The prospects of active data security and protection has brightened with the partnership between Nigeria Data Protection Commission (NDPC) and banks to create awareness about the requirements and operations of the Data Protection Act.
With more than two-thirds of Nigerians’ personal data and transactions in excess of a billion, banks arguably have the largest private data bank and are seen as critical stakeholders in data privacy and security.
While banks constitute less than one per cent of the over 500,000 data processors’ organisations in Nigeria, their huge customer base and data make them among the most significant pillars of national data protection and security.
The KPMG West Africa banking industry customer experience survey 2023 found that “the security, integrity, and privacy offered by banks continue to be important values for customers,” with a sense of security and privacy moderating customers’ choices. The survey also found a notable increase in digital lending, which exposes customers’ data to more online activities.
Rasheed Bolarinwa, president, Association of Corporate & Marketing Communication Professionals of Banks (ACAMB), during a working visit to NDPC headquarters in Abuja, engaged with the top management of the data protection agency with a view to achieving stronger collaboration with the financial services sector.
He said a stronger working relationship between NDPC and banks and other operators in the financial services sector would enhance regulatory oversight and achievement of the goals of individuals’ data protection and private security.
During the meeting, ACAMB, the umbrella body of spokespersons for banks, and NDPC discussed aligning efforts on regulatory oversight and data protection compliance.
Bolarinwa emphasised the importance of minimising regulatory risks by fostering a clear understanding of the NDPC’s mandate within the financial sector.
He stressed that reducing data protection infractions and ensuring compliance, can only be achieved through stronger communication and advocacy efforts.
As both the ACAMB president and chairman of NIPR’s finance hub management committee, Bolarinwa urged the data protection commission to enhance awareness campaigns about its operations, pledging ACAMB’s full support in this endeavour.
He highlighted ACAMB’s commitment to helping financial service providers better understand the Commission’s objectives, thereby ensuring compliance with data protection laws.
“As social engineers responsible for managing perception and corporate reputation, we cannot afford to have our brands breach the Data Protection Act. Such violations could damage corporate trust and harm the business’s long-term sustainability,” Bolarinwa said.
Vincent Olatunji, national commissioner and chief executive officer, Nigeria Data Protection Commission (NDPC), assured ACAMB of the NDPC’s willingness to collaborate with financial sector players.
According to him, the Commission’s role is not punitive but rather to ensure full compliance with the Data Protection Act.
He welcomed ACAMB and NIPR finance hub’s offer to support the Commission’s advocacy efforts.
He noted that the NDPC’s mandate is to safeguard individuals’ data privacy rights, foster safe personal data transactions, and prevent the misuse of personal data, among other objectives.
At the meeting were other top management members of NDPC, including Babatunde Bamigboye, head, legal enforcement and regulations dept; Fitto Watirayhel Danladi; head, people management & administrator, and Olayinka Oyebanji, technical advisor to the National Commissioner and CEO.
Analysts said collaboration between banks and NDPC would be a game-changer for Nigerian data security given banks’ extensive investments and experience in data privacy.
Analysts noted that against a surge in hacking attempts and unauthorised access, Nigerian banks have successfully protected the sanctity of customers’ data and deposits.
