As Nigeria’s fintech sector expands, managing fraud, compliance, and operational risk has become critical. Industry leaders agree that sustainable growth will depend on balancing innovation with trust, governance, and resilience. Managing Director, Cized Konsult, Caleb Izedonmi, in this interview with Adedayo Adejobi, explored the emerging risks shaping Nigeria’s digital payments ecosystem. Excerpts:
With Nigeria’s digital payments ecosystem growing rapidly, what emerging risks should fintechs and financial institutions focus on?
As digital payments grow, so do the risks. Beyond traditional fraud and cybersecurity threats, fintechs and financial institutions (FIs) must pay closer attention to identity fraud, account takeovers, mule accounts, third-party risks, and the increasing sophistication of financial crime. The real challenge is that innovation is accelerating faster than traditional control frameworks. FIs and fintechs that succeed will be those that build risk management capabilities at the same pace as product innovation.
How has the risk landscape evolved from traditional banking to today’s digital-first ecosystem?
Risk has become faster, borderless, and technology-driven. Traditional banking relied heavily on physical verification and manual oversight. Today, customers can be onboarded remotely, and transact instantly across multiple channels. As a result, risk management must therefore be proactive, data-driven, and embedded into the customer journey and life cycle.
