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NDIC ready to tackle emerging threats to banks — Ibrahim

The Nigerian Deposit Insurance Corporation (NDIC) has expressed its readiness to tackle emerging challenges to the banking industry. The Managing Director/ Chief Executive, of NDIC Umaru Ibrahim stated this in Lagos the 30th anniversary dinner of the corporation. He said:” We have come a long way and we have done a lot, we have tried our best, but we are also equally aware of the new challenges ahead of us and we can also confirm that we will continue our very best to face challenges that are affecting the economy, the banking system in particular. “This 30th anniversary for us serves as an interception, a reflection for us. Like I said who we are, what we are, where we are coming from and how we have coped over time with all the difficulties in the last 30 years but I think more importantly, we need to acknowledge the fact that we need to reposition the corporation to face new challenges ahead. He noted that the new challenges which includes new emerging operational risks, phenomenal growth of assets of the Nigerian banking industry and its implications for supervision, regulations among others. He said: “ Our growing population, phenomenal growth of the Nigerian population, young population and the demographic shift, changing customer preferences, poverty and unemployment. These are challenges which could largely be addressed if we have a very stable banking system. “We are also aware of the emerging role of financial technologies (fintechs) in the financial landscape, blockchain technology and phenomenal incursion of digital currencies globally and Nigeria is not left behind. In fact, it is in appreciation of this that arrangements are underway to develop a special team of experts in innovation and digital technology in the NDIC. “As a matter of fact about a month and half ago, the board of directors and management visited Korea and Taiwan and signed Memoranda of Understanding with our sister organizations over there so that we could learn from the advancement they have recorded in the area of internet banking, digital technology in general. As we speak, I think Korea have just licensed two or three internet banks only and we asked them, “how are you going to supervise and regulate these banks that will operate 24/7 without a human being?” They said they too are having sleepless nights but will have to catch up. They are going to employ artificial intelligence to solve their problems to ensure effective supervision and regulation of these institutions.” On her part, the Chairman, NDIC, Mrs. Ronke Sofunke explained that the number 30 is an age of independence urging staffs of the corporation to continue with their hardworking.