The Nigeria Deposit Insurance Corporation (NDIC) has said the safety and stability of the country’s financial system has in recent times come under threat due to cyber security breaches.
The NDIC Managing Director/CEO, Bello Hassan, said this is because today’s financial system operates in a digital environment to deliver services to stakeholders in a very efficient way, making the use of technology inevitable.
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Speaking at the opening ceremony of the 2021 NDIC retreat for members of the Senate Committee on Banking, Insurance and other Financial Institutions, the MD said financial institutions have had to harness technological advancements such as ‘Fintech’ to be efficient and remain competitive.
“The increased reliance on such digital infrastructure has led to exposure to risk, such as cyber-attacks. Given the financial and technological interconnectedness among the financial institutions, losses due to cyber attacks not only affect individual banks but also pose damaging risk to the entire financial system with serious implication for economic growth and development,” he said.
He however said the NDIC in collaboration with other key stakeholders have been proactive in managing the risks associated with cyber insecurity, adding that it had in 2020 established a ‘Fintech and innovation unit’ to effectively respond to challenges of cyber threats among other challenges of the Fintech innovations.
The Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Uba Sani, said the retreat will afford members the opportunity to reflect deeply on the challenges of stabilizing the financial system in a distressed economy.