Afrigather Nigeria’s Central Financial institution (CBN) has directed business banks to get regulatory approval earlier than altering their core banking software program, in line with two individuals aware of the matter. The directive is in response to the influence of the continued know-how adjustments by a few of the nation’s greatest banks.
For the reason that second half of 2024, at the very least 4 business banks have modified their core banking functions. These adjustments, pushed by prices and a necessity for customisation, have left hundreds of thousands of shoppers unable to entry banking companies. A lot of these clients have shared their complaints on social media platforms.
Whereas these banks say they’re working to resolve the problems, the regulator’s intervention will intensify the strain on them.
“The CBN isn’t proud of how clients have been complaining about banks up to now couple of months. That’s why it’s stepping in,” a type of individuals stated.
The CBN’s directive is in step with its accountability to guard clients because the regulator, one other particular person aware of the matter stated. In February 2024, the CBN launched a revised draft of the reviewed 2019 shopper safety laws.
But banking specialists and clients have questioned the regulator’s lengthy silence over the difficulty, with some anticipating the regulator to nice the banks like in different climes. In 2012, Royal Financial institution of Scotland (RBS) was fined £56m after a botched system improve left over 6 million clients unable to entry their accounts.
“I’m nonetheless shocked that the CBN hasn’t taken regulatory motion towards some other banks. They need to have fined them,” stated one banking professional who requested to not be named.
One idea is that the delay within the CBN’s intervention was as a result of absence of a particular regulatory framework for core banking platform adjustments, one particular person aware of the matter stated. The brand new directive hopes to repair that.
