“You cannot play with a customer’s data because you have it” – NDIC warns Fintech

The Nigeria Deposit Insurance Corporation (NDIC) has warned financial technology (Fintech) operators against disclosing their customers’ financial details without appropriate permission.

Dr Kabir Katata, Deputy Director, Research Department of NDIC, gave the advice in Yola on Wednesday at the 2019 NDIC Workshop for Business Editors and Finance Correspondents Association of Nigeria (FICAN).

Katata said that concealing customers’ data and information was necessary to ensure financial system integrity.

“Data privacy, consumer protection is the only way of regulation and supervision.

“You cannot play with a customer’s data because you have it. Banks need to understand that they have responsibility to protect customers’ data.

“ You have collected data, it does not mean you should do whatever you wish with it,“he said.

“The age and time where a bank will say that your data or record is ours, it is not true. The data does not belong to you, it belongs to the customer.

“He or she has to give you express permission to share it and you cannot disclose the financial status of a person without permission.

“This issue of data privacy is a big problem, but compliance is now very fast unlike before,’’ he said.

Katata advised fintech operators and banks to invest heavily to support new partnerships and “train your staff to effectively meet best practices.”