The Financial Services sector globally is one sector that has been significantly impacted by the rapid growth of technology and innovation. With the growing appetite of consumers, for faster and more convenient financial services, Financial Technology startups ("FinTechs") have been instrumental in meeting these needs.
In Nigeria, FinTechs have played an integral part in solving key issues such as the large unbanked population; the underdeveloped credit system; friction in international money transfer; and difficulties in payment settlement systems. Accordingly, FinTechs in Nigeria provide a wide range of services including digital banking; international money transfer services; digital lending services; payment service systems; open banking systems; digital investments amongst other services. FinTechs in Nigeria were reported to have attracted over $1.2bn in investments in 2022.
Nigerian regulators in the Financial Services sector have attempted to match the growth rate of innovation by developing regulations to guide their activities at a much quicker pace than usual. Although the regulators have struggled to meet up, a body of regulations have been developed to guide the activities of FinTechs in Nigeria and compliance is crucial.
Apart from ensuring regulatory compliance, attracting funding is key to the success of FinTechs in Nigeria. For this purpose, most FinTechs have set up complex structures- with their parent companies located outside of Nigeria-without fully understanding the compliance requirements in such regions. A popular location for this purpose is Delaware, United States of America.
This webinar aims to guide the audience on the Nigerian and United States regulatory terrain for FinTechs from a compliance and funding perspective.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
