Around October 2019, NDIC announced intentions to open up a special team of experts in innovation and digital technology including blockchain and artificial intelligence in NDIC.
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Then just recently, the Nigeria Deposit Insurance Corporation, NDIC, opened up a new department called “Fintech and Innovations Unit”. This is in response to the emerging technologies like blockchain, artificial intelligence and its innovations and applications in financial services.
The new department according to a statement signed by Mohammed Kudu Ibrahim, on behalf of the Director, Communications and Public Affairs, was created to take care of contemporary trends in advanced economies.
They will focus on internet banking and digital technology in general picking sides with Korea and Taiwan. This will help solve issue facing financial institutions causing threats to the banking system.
The statement reads;
“The development is also in consonance with the Corporation’s Strategic Vision, which is to become one of the best deposit insurers by the year 2020.”
“The new Unit, which is domiciled in the Insurance & Surveillance Department of the Corporation, is expected to engage and collaborate with innovators in the financial and non-financial sectors of the economy to identify, develop and promote technology-driven solutions that would protect depositors and improve the safety and soundness of Insured Financial Institutions.”
Going further the statements says;
“The Unit is expected to enable the corporation identify disruptions and associated risks of Fintech and Innovations on deposit insurance; articulate the use of Fintech for Early Warning Signals (EWS) and Prompt Corrective Action (PAC); Identify other digital currency deposits for the purpose of insurance coverage; evolve supervisory measures for digital banks; and enhance existing consumer protection measures as they relate to digital deposits in collaboration with other safety net players.”
Following Musa Umaru’s comment concerning the new unit created under the organization, he says;
Nigeria is aware of the emerging role of financial technologies (fintechs) in the financial landscape. The role of blockchain technology and digital currencies globally and that Nigeria is not left behind.Musa Umaru, Managing Direct/ Chief Executive National Deposit Insurance Corporation.