E-Financial
The Insecurity of Things
Evolution in technology is enabling more “things” to connect more often around the world, at a pace that’s showing no sign of slowing down.
By 2020, 70 percent of people across the world will be smartphone users and countries in Asia, Africa and the Middle East will account for 80 percent of the new subscriptions.
More people currently have access to a mobile phone than a clean toilet, safe water or reliable energy – and their prevalence is expected to keep growing.
This has led to the inevitable widespread adoption of generic cloud and social technologies in emerging markets with access to freeware or inexpensive public services such as Gmail and Dropbox.
While this holds great opportunity for developing countries, the rapid spread of technology compounds a broader issue concerning infrastructure.
Within the developed world, the fines payable for not protecting personal data are hefty in regulated industries such as financial services and healthcare.
Governments have increasingly woken up to the seriousness of the cyber threat. To keep on top of the risks, more regulators have hardened their stance on cyber security infrastructure.
As cities in developing countries are expanding rapidly, it is likely that infrastructure will not be able to keep pace with their growth nor the increased expectations of their populations. This suggests lower standards of technology governance which can put personal data at risk.
Having said that, developing countries have the opportunity to leapfrog by avoiding the mistakes made by other advanced countries and applying the lessons learned from the development of smart city infrastructure.
If managed effectively, there is huge potential for technology to increase the efficiency with which developing infrastructure can be managed.
The use of big data, the Internet of Things and the ubiquitous nature of smartphones use promise to revolutionize developing cities to become truly smart cities built on safe and secure infrastructure.
The line between the digital and the physical world is blurring. Action to close the infrastructure gap has never been more important and will heavily influence the potential of risks with catastrophic cascading effects.
Securing the infrastructure – it starts at enrolment
In developing markets, where new players are able to gain early access, influence consumer behaviour and acceptance, it is easy to see how the systems established for payments will be under pressure by “quick and easy access”.
It could result in a weakening of the process, enabling non-credible players to enter the payment ecosystem.
It’s vital for secure infrastructure to be built from the ground up to minimise vulnerabilities and to keep pace with technological advancement.
EMV, widely known for its chip & PIN application, is a global security payment standard that serves as the foundation for future payment technologies, across cards, contactless, mobile and remote payment channels.
Already deployed in 150 countries, it is fundamental to building secure payment infrastructure. EMV technology allows dynamic data to be created, making each transaction unique and virtually impossible to replicate.
While research shows a 200 percent growth in transactions originating from mobile devices in 2015 compared to 2014, EMV has still not taken root in some of the world’s developing economies. Its effectiveness as a first line of defense is clear – with significant adoption of EMV transaction penetration (chip card on chip terminal transactions) in Africa and Middle East (61.2 percent), Canada, Latin America and the Caribbean (71.7 percent) and Western Europe (83.5 percent).[3]
Employing a multi-layered security approach for any organization is what will lead to decrease in fraud.
EMV is just the beginning. To ensure our consumers can benefit from the same level of safety in the digital world, we are basing our future payments products on proven technologies like M/Chip that significantly reduce counterfeit fraud.
M/Chip features in mobile phones will be a key component of emerging devices. The MasterCard Digital Enablement Service or MDES is our core platform for provisioning M/Chip-enabled payment devices with tokenized payment credentials.
MDES together with M/Chip provides the same level of EMV-like security and interoperability for the digital world as we have in the physical world
In addition, 3D Secure Standard is an automatic online security service that secures you against unauthorised use online. It uses a private code that gives added protection when you shop at participating online merchants.
Government adoption of secure technology can also be a part of the solution.
In Egypt, with 85 percent of the population lacking access to formal banking, the mobile phone is rapidly becoming the method of choice for making payments and managing money.
The Central Bank of Egypt issued strict mobile payment regulations to guarantee safety and security for people, resulting in significant reduction in fraud.
This is indeed a necessity considering that the mobile penetration in Egypt is currently at 115 percent of the total population, meaning that some people have more than one phone.
Similarly in Thailand, the government is taking active steps to improve cybersecurity for electronic transaction on mobile phones. Being the second largest smartphone market in Southeast Asia, the country is pursuing its ambition to become a cashless society.
Here, the government is relying on biometric technology to prove people’s identity via mobile phones as a means to reduce fraud. Like Egypt, Thailand’s saturated mobile phone market is relied upon heavily for payments and money transfers.
Nigeria is another example of how deploying secure infrastructure has resulted in huge benefits to the country’s development. Nigeria’s National Identity Smart Cards are embedded with biometric identification chips and electronic payment capabilities, another example of biometric technology being employed to curb fraud. The introduction of the chips helped reduce fraud from counterfeit cards and transactions in Nigeria.
Adapting known solutions for a digital world
The security solutions that already exist in the physical world are ready to be implemented in the digital world. We just need the motivation, regulation and coordination to ensure everyone is able to benefit, wherever they are in the world. The alternative, in today’s unregulated environment of the Internet of Things development, could be a thing of security nightmares.
Working in partnership with those who can make a difference is vital to remain one step ahead and change the current mindset from one that sees security innovations as optional, to one that recognises they are an absolute necessity.
Through the right global standards, best products and services, and our desire to constantly innovate, we can ensure everyone is protected and financially included everywhere, which will ultimately define and defend the future of payments.
Nigeria Insurance Deposit Corporation (NDIC) has guaranteed customers of insured commercial banks prompt recovery of their deposits in the event of risk liability or liquidation.
In addition, the corporation assured depositors of its statutory mandate, which includes supervising banks for risk assessment, ensuring ethical standards, and enhancing financial stability in the country.
Mrs Emily Osuji, executive director, Corporate Services, NDIC, gave the assurance during a Stakeholders Town Hall Meeting on customer protection regarding bank charges and deposits in Kano.
Mrs Osuji posited that the NDIC has, in recent times, demonstrated a strong commitment to protecting the hard-earned savings of Nigerians and sustaining confidence in the banking system.
She cited the cases of defunct Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc, where depositors received their deposits promptly after meeting the relevant requirements.
The NDIC boss, however, reminded customers to link their Bank Verification Number (BVN) as a unique identifier to locate their alternate accounts, where their claims will be transferred.
The executive director affirmed that NDIC has expanded coverage to protect about 99 per cent of depositors in Nigeria, a deliberate policy aimed at protecting small savers, promoting financial inclusion, and enhancing trust in the banking sector.
She said, “The corporation fulfils its role through its core mandates of deposit guarantee, bank supervision, distress resolution and bank liquidation, all of which are geared towards protecting the hard-earned savings of Nigerians and sustaining confidence in the banking system.
“Our strapline, ‘Protecting your bank deposits!’, is more than mere words for us. We stand by this statement as a firm commitment to our mandate of ensuring that depositors have access to their hard-earned savings in the event of bank failure.
“This is a critical responsibility that we do not take lightly. This is especially so in times of financial uncertainty and distress, with the NDIC standing as a pillar of safety and reassurance for depositors, particularly the most vulnerable.”
Speaking on the concept of stakeholder engagement, Hawwau Gambo, head of Communication and Public Affairs, said the corporation was compelled to provide clarity, build trust and strengthen depositor confidence amid misconceptions.
Gambo noted that the recent revocation of the operating licences of some banks by the Central Bank of Nigeria, (CBN) and the current public discourse on banks’ recapitalisation efforts have reinforced the need for sustained stakeholder engagement.
She reminded that sustained awareness is pertinent to dust, given already heightened public interest and featured public confidence in the financial institutions.
“NDIC’s last Public Awareness Survey highlighted the need to enhance interpersonal communication channels to improve public understanding of deposit insurance. It is against this backdrop that the Stakeholders’ Town Hall Meetings were conceived as a structured, interactive platform for dialogue, education and feedback,” Gambo noted.
The Central Bank of Nigeria in its 2025 Fintech Policy Insight Report, has raised concern over Nigeria’s fintech sector heavily dependent on foreign investment, exposing it to swings in global markets.
The report said the sector has shown resilience despite global economic pressures, but warned that reliance on external capital leaves it vulnerable to market fluctuations.
It would be recalled that startups in the country raised $520m in equity funding in 2024, down from about $747m in 2019, when Nigeria captured roughly 37 per cent of all African startup investment.
This performance, amid significant global macroeconomic gyrations, underscores Nigeria’s position as a key hub for financial innovation. The sharp rise in interest rates in advanced economies during 2022 contributed to a slowdown in venture capital funding.
“These dynamics highlight the importance of developing domestic funding avenues, such as leveraging Nigeria’s capital markets, to reduce currency risk and sustain fintech growth,” the apex bank stated.
Olayemi Cardoso, CBN Governor, said Nigeria is undergoing a rapid and significant financial evolution. Over the past decade, the nation’s fintech landscape has grown from a handful of startups into one of Africa’s most vibrant innovation ecosystems.
“Even amid global economic headwinds, Nigerian fintech firms continued to attract investment and drive change. Today, with improved stability of our currency and domestic economy, it is clearer than ever that financial innovation can advance inclusion at scale,” the executive commented on the report.
In addition to funding, the central bank underscored Nigeria’s continued leadership in digital financial infrastructure. More than 25 per cent of all electronic transactions in Africa’s most populous nation are processed via real-time payment channels, with close to 11 billion transactions processed in 2024, up from five billion in 2022. The report described Nigeria’s instant payments platform, NIBSS NIP, as among the most mature and widely adopted globally.
The report also mentioned the need to strengthen system integrity and reputation, pointing to compliance reforms, anti-money laundering supervision, and consumer protection measures as key priorities for sustaining investor confidence.
By focusing on domestic funding, regulatory modernisation, and innovation infrastructure, the CBN aims to position Nigeria not only as a fintech front-runner but also as a rule-setter whose regulatory lessons are relevant to peer emerging and high-growth economies globally, the central bank said.
Stakeholders surveyed by the CBN also cited compliance costs as a significant challenge to innovation. According to the report, 87.5 per cent of respondents said that the cost of meeting regulatory and risk requirements significantly impacts their capacity to innovate, while delays in product approvals and regulatory timelines also remain major bottlenecks.
The report noted that 62.5 per cent of fintech firms plan to expand regionally, and there is strong support for regulatory pass-porting frameworks to enable compliant expansion into other African markets. However, the CBN warns that such cross-border growth requires a stable funding base and coordinated regulation.
After a few years abroad, I returned to Nigeria and faced a dilemma. Let me tell you all about it.
UBA
A few days ago, I was dragging my luggage through Murtala Muhammed International Airport. Everything felt bright and beautiful. Not necessarily in aesthetics, but in the vibrant colours, sounds, and energy all around. After three intensive years in the UK, I was finally back home. Ready for the hustle and bustle of Lagos life, and yes, the comfort of my parents’ home.
The plan was simple. Settle down and get my life on track. I’d sorted the job, and I had my person. But then came my dilemma. Money!. This doesn’t mean I was short of it or had too much of it. The real issue is where to actually keep and manage it in this country with daily dramatic happenings. With just two weeks left before I resumed at my new workplace, I had no time for long queues, endless paperwork, or the classic “Nigeria bank stress.” So, I needed an account, and I needed it fast.
So I turned to my best friend, Google, and typed, “Instant account opening in Nigeria.”
In less than a second, I was redirected to the United Bank for Africa instant account opening portal. A few taps later, and I had a fully functional account. Just like that. I could receive my funds, transfer my funds, and start building my financial life here again.
In less than a second, I was redirected to the United Bank for Africa instant account opening portal. A few taps later, and I had a fully functional account. Just like that. I could receive my funds, transfer my funds, and start building my financial life here again. Talk about ease, and this beautiful experience truly exemplified that definition
I was genuinely amazed. It felt too easy, almost suspiciously easy. But it was real, I mean, really soft like they were just thinking all about me while developing this new feature.
If you’re like me and pressed for time, avoiding unnecessary stress, or just ready to sort your finances without the hassle, consider this your sign.
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