Finance debt

Expert calls for strong regulation for digital money lenders

1 Arvofinance Managing Director Mr. Ayotunde Bally has urged regulators to provide a sound regulatory environment for digital money lenders to thrive.

2 Bally gave the advice in an interview with Nigeria’s News Agency on Tuesday in Lagos.

Nigerian daily newspapers today

3 He spoke on the background of the recent closure of the operations of four online money lenders by the Federal Competition and Consumer Protection Commission (FCCPC).

Nigerian daily newspapers today

4 Arvofinance is a fintech company that provides online loans to consumers without collateral or guarantors.

5 The CEO urged regulators not to allow themselves to be seen as business inhibitors.

6 “What regulators in Nigeria continue to do is stifle companies that they lack the skills to regulate.

seven “Why close a business when you can develop the ability to understand the basics, the rigors and the environment in which that business operates.

8 “Instituting policies and frameworks that make business practice sounder; instill better corporate governance and supportive policies.

9 “These companies have a direct interaction with the economic growth index, per capita income, gross domestic product growth and, most importantly, constitute and contribute to a large foreign direct investment quotient in the country,” he said. -he declares.

ten He also said the current global economic downturn has made the shutdown untimely and inappropriate.

11 According to him, it is time to revive the economies in all their facets to limit the economic setbacks of citizens.

12 Bally explained that online lending platforms have, over time, made the entry barrier for accessibility of funds quite easy in Nigeria.

13 He said Nigerians have gained trust by relying on these platforms for credit.

14 He also said that countries like Ghana, Kenya and Benin Republic are seriously considering this business model to bring the unbanked into the financial system to grow their economies.

15 “The recent shutdown will ultimately erode the trust that people have for platforms of this nature, will create panic within the system as platforms that are unreliable, as such, inhibit their growth.

16 “At least a minimum of 1,000 people have been put out of work by this shutdown.

17 This would eventually lead to an increase in the unemployment index currently at 35 percent by at least three basis points.

18 “The purchasing power of direct employees of these affected institutions as well as dependents would be reduced by almost 60%,” he said.

19 NewsSourceCredit: NAN