Today, we live in a global ecosystem where technological advances are taking over many industries and driving change in the way products and services are being delivered to end-users. The financial industry is not left out as fintechs have disrupted the traditional banking and payment systems, reaching the unbanked through innovative solutions and carving out a niche for themselves through process automation, improved customer service, user-friendliness and overall convenience.
The rapid growth of the fintech space has not passed beneath the radar of regulatory bodies like the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), and different sectors in the fintech industry are now being brought under regulatory oversight.
Earlier this year, for example, the SEC stopped (unregistered) investment platforms from offering foreign stocks to Nigerians. A secular put out by the commission partly stated, “… only foreign securities listed on any Exchange registered in Nigeria have the permission to engage in any of form of transaction with the Nigerian public.”
Despite these regulations, the fintech space is still thriving as top players such as Chaka, an investment platform, and Cowrywise, a fintech company have taken steps to comply with the regulatory requirements.
haka recently acquired the “Digital Sub-Broker/Sub-Broker Serving Multiple Brokers Through a Digital Platform License” by the SEC. This makes Chaka the first recipient of this newly created license.
Cowrywise also received a fund/portfolio management license from Nigeria’s Securities and Exchange Commission (SEC).