James Edeh, Head of Compliance at FairMoney Microfinance Bank, has urged financial services operators to prioritise responsible lending, customer data privacy and transparent operations to build sustainable trust in digital banking. Edeh noted that although rapid digital innovation had broadened access to financial services, it must be supported by strong regulatory compliance and stringent consumer protection measures. He emphasised that compliance can no longer be viewed strictly as an internal back-office duty meant only to satisfy regulatory mandates, stressing that in a technology-driven environment, compliance serves as a core structural element designed to safeguard consumers and maintain operational integrity across digital touchpoints.
According to EFInA's 2023 Access to Financial Services Survey, formal financial inclusion in Nigeria rose from 56 per cent in 2020 to 64 per cent in 2023, leaving 26 per cent of adults financially excluded. While digital tools help close this gap, Edeh cautioned that expanding access requires financial institutions to manage risks deliberately as services scale. He stressed that technology can expand lenders' ability to assess and serve a wider range of customers, but increased access must be accompanied by responsible conduct.
Edeh said customers should be provided with clear, relevant and understandable information about the terms, conditions, applicable charges and other material features of financial products they use. He added that customers should have confidence that their information will be treated appropriately and that credible channels exist through which concerns can be addressed. Maintaining consumer confidence requires financial institutions to embed regulatory controls during product conceptualisation rather than reacting after operational issues occur.
He explained that decisions about data, product design, lending, customer communication and complaints management all have consumer protection implications. A strong compliance culture helps institutions identify those implications and incorporate appropriate safeguards into the way they operate. Edeh stressed that institutions must look past narrow regulatory compliance to achieve long-term market stability, moving beyond simply determining whether an institution has met a particular rule.
Edeh concluded that despite technological shifts, trust remains the core foundation of banking relationships. He said the success of tech-enabled finance will depend not only on the quality of the technology behind it, but also on the quality of the governance surrounding it. Customers may be attracted initially by convenience, speed or access, but their longer-term confidence will depend on whether institutions demonstrate consistency, transparency and a clear commitment to protecting their interests.