Name
Global FinTech Guide
Country _ Name
Nigeria
SectionTitle
RegTech and compliance management
Body
RegTech is composed of the words “regulatory” and “technology”. It is a collective term for the application of modern technologies, to get the increasing regulation in the banking- and financial sector under control both from an IT and a legal standpoint.

Introduction

Attitude of the country towards RegTech-services

The fast development and evolving regulatory regime of the Fintech sector has encouraged financial institutions to resort to RegTech services to assist in regulatory compliance.

RegTech solutions are becoming increasingly prevalent in Nigeria in areas like KYC procedures, AML, and regulatory reporting and compliance. Fintech companies in Nigeria utilize RegTech in complying with regulatory compliance requirements efficiently. RegTech has also been very instrumental for Fintechs in combating fraud, ensuring cybersecurity, and managing risks. Some RegTech services in Nigeria include: (a) compliance monitoring platforms; (b) KYC Solutions; (c) risk management platforms; (d) onboarding verification; and (e) identification/background checks.


Legal affairs

Obligations and requirements to provide RegTech-services

RegTech service providers are generally obligated to ensure that their solutions are the right fit for the specific sectors in which they operate – financial services, brokerage due diligence, Insurtech etc. Consequently, it is the responsibility of the RegTech service provider to familiarize itself with the regulatory regime applicable to its clients. In addition, the contractual terms between the Fintech companies and the RegTech service providers (in case of outsourcing) also provide the scope of obligations of the RegTech service provider to the Fintech companies in Nigeria.

Additional comments regarding the legal situation for RegTech-services or what RegTech’s must be aware of in this business area

Given the fact that the regulatory framework for Fintech operations is constantly being reviewed and everchanging and the attendant effect it could directly have on businesses, there is a need for RegTech service providers to be abreast with the evolving regulatory landscape of the FinTech and RegTech ecosystem.


Economic conditions

Market size for RegTech-services and biggest companies in this business area

The market size of RegTech-services in Nigeria is satisfactorily evolving. Recent reports state that the Regtech market in Nigeria is set to rise by 40% by 2026. We have listed below some of the biggest companies in the RegTech sector:

  • Voyance: is a RegTech based in Lagos, Nigeria which was founded in 2019. It analyzes data and uses AI-enabled tools to produce results that are used in making informed business decisions. Recently, Voyance provided a fraud management solution specifically for Fintechs, called Sigma.
  • Seamfix: is an identity management solution for banks and financial institutions. It offers KYC solutions that enable organizations to capture, onboard, verify and digitize the identities of customers and their documents in real-time. It provides BioRegistra for biometric data capturing, and BioSim for SIM registration systems. It also offers Verified that enables businesses to verify the identity of individuals and match them against multiple databases of certified government organizations, Clocker provides a clock-in software for businesses to track employees in any location.
  • Prembly: is another Lagos based Regtech, founded in 2018. It is an AI based platform offering KYC and identification solutions. It provides security against fraud on their platforms while maintaining regulatory AML and KYC compliance. It equips businesses with the tools required for seamless compliance and fortified protection against fraud, online scams, and activities of internet bad actors. Its products include identity pass, identity form, and identity radar.
Other RegTech service providers include Identitypass,Verified Africa, Dojah and iSec.

Additional comments regarding the economic situation for RegTech-services or what RegTech’s must be aware of in this business area

In an economically developing country like Nigeria, the adoption of RegTech solutions presents certain challenges, despite the significant benefits they offer. For instance, firms with little technical competence or resources may find it particularly difficult to integrate complicated technology like artificial intelligence. This is because these advanced technologies can be difficult to comprehend and seamlessly integrate into existing systems. Furthermore, RegTech may also necessitate a substantial overhaul of an organization's systems, procedures, and culture. Opposition to change may provide a serious obstacle to the effective use of RegTech.

Overall, while the advantages of RegTech are substantial, its successful implementation in a country like Nigeria requires addressing the complexities and resource constraints that organizations may face.

Authors

NameOrganisationEmail
Ebimobowei JikenghanG Elias[email protected]06346
Eberechukwu Ezike [email protected]0 

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