Nigeria awaits the changing paradigm the current socialist economy will impact the national GDP growth to reflect on the minimum wage rate that determines the standard of living in the country. Notable adjustments have reportedly been done across the cohort sector to continue socio-economic relations which has the Central Bank of Nigeria (CBN) on Techbooky Africa’s radar for discussion about the latest statutory mandate for financial institutions to adopt the technology-related statute system upgrade for verifying users’ identity.
The Nigerian apex bank’s latest policy called the Customer Due Diligence Regulations 2023 enacts a statute for financial services partisans under CBN’s apex jurisdiction to oblige in full compliance. For context, the CBN governor, Folashodun Shonubi statute enactment is drafted to regulate the financial ecosystem approach to process seamless and systemic Know Your Customer (KYC) automation via social media security system verification tools incorporation.
The motive for campaigning for the inland financial sector diligence to the apex bank’s office depicts a political show-off on power rotation that got Shonubi the regulatory mantle to scold policy defaulters. The Customer Due Diligence Regulations mandate is not as rigid and complex as the Oxford dictionary explains an African tech-savvy intellect that consents to centralize the financial sector by adopting a universal security system.
Financial institutions in the country are keen to oblige the apex bank mandate by tweaking their respective platforms to require users’ social media handle to complete KYC automation. An average Nigerian financial services provider has an encrypted security system that requires uses KYC portal completion to be authorized to use the platform’s services.
The procedure for KYC completion is designed to be seamless per the self-comprehensive UI design for users to input Individual characters and features to make up an identity. This includes characters like BVN, driver’s license, NiN, national identity number, social security, voter’s card, phone number, or email addresses to automated KYC registration which is common in the Nigerian digital landscape.
It is a no-brainer that an ideal financial institution in the country has high-end technology to pair with enhanced encryption that makes KYC optimization simple as reciting the Roman numerals. The CBN mandate sprung reactions from patriotic Nigerians that comment about the apex bank regulatory affairs should focus on driving financial inclusion rather than mandate policies with a peripheral impact on the national bearish economic status.
However, I do not think any financial institutions in the country will be reckless enough to shirk the apex bank mandate to face regulatory scolds per fines and other disturbing lawsuits. Without further ado, CBN policy on KYC automation is as simplified as the section by section of statutory paperwork drafted to regulate KYC system embedment which regardless of financial institution custom security encryption, financial institutions must require users’ to provide social media handle during KYC registration.
