The concerns of cyber threats, among several other risk factors, continue to pose a threat to the fintech industry. However, closer collaboration with regulators, adopting excellent good governance practices, and deploying effective internal control measures can dramatically reduce the threat levels bad actors pose to an organization.

Speaking at the sixth edition of the Nigeria Risk Awards Summit at Civic Centre, Victoria Island, Lagos, Gbenga Omolokun, Managing Director, Vbank (powered by VFD Microfinance Bank) said, “Most regulatory frameworks in Nigeria were setup or published before the digital era. Ergo, we have location-based restrictions on transactions, verifications that are solely dependent on physical validation as opposed to digital footprints, and more. All these structures and guides don’t take the risks that are prevalent in the market today into account”

Explaining further, Mr. Omolokun iterated, “Increased collaboration with regulators will bring more legitimacy and trust to the market. This collaboration will ensure that the regulatory measures are up to date, and most importantly, that there are consequences for bad actors.”

The fintech landscape is one of the fastest evolving industries today, that is why it is sometimes difficult for regulation to keep up with the rapid development. According to Mr. Omolokun, “Name it, and there is an app for it. Therefore, the risk or possibility of risk continues to increase exponentially”. In this vein, the effects of risk as it pertains to business were discussed during the panel session at the summit in terms of fiscal, economic, climate change, political, economic disparity, and even pandemic elements.

The Nigeria Risk Awards, Summit saw business leaders discuss the state of the industry. This discussion was intended to help individuals, organizations, and even the state to manage risk better and from a more holistic perspective. The summit recognizes and rewards organizations that have achieved measurable results through effective internal controls and risk management systems.

Rounding up the panel session, Mr. Omolokun explained that “At Vbank, we take risk very seriously, that is why we have pre-emptive measures to ensure that our customers are not unduly exposed to risk. We have implemented industry-leading internal control systems to ensure that our customers continue to enjoy seamless banking through our award-winning mobile app”.

Late last month, Vbank won the Mobile Banking Application of the year for the second time in a row at the Gage Awards. Vbank led the mobile banking application category ahead of GTCO, Access Bank, Polaris Bank, and Wema Bank’s ALAT.

Launched in March of 2021, the digital bank has onboarded more than 350,000 individuals and businesses on its mobile banking platform across Nigeria and processed transactions worth billions. Vbank is available as V by VFD on the Play and iOS app stores and has a top-class web-based platform tailored to the needs of business owners.