APPRAISAL OF DIGITAL DISRUPTION IN THE BANKING SECTOR IN NIGERIA: CREATING A SUSTAINABLE LEGAL FRAMEWORK

Abstract

Technology has always impacted the banking industry, and customers want to stay current. Until the early 2000s, banks required a few days to transfer money across bank accounts in various Nigerian states. Today, most of these banks offer mobile applications through which you can open a fully functional bank account, make investments, and buy things without physically going to a bank or seeing or handling money. Thus, the banking industry has been democratised and transformed by digital disruption. Digital disruption is defined as the development of new markets and value networks that eventually subvert established market leaders and alliances by dislodging current markets and value networks. In light of this, this paper seeks to examine the need to create a sustainable legal framework in the banking sector. In achieving this, a doctrinal methodology was adopted by consulting primary sources of law such as the Bank and Other Financial Institutions Act 2020, Central Bank of Nigeria Act 2007, and other legal instruments, and secondary sources of law such as journal articles, and online sources which were all subject to content analysis. This paper found that the fragmented legal framework cannot effectively address issues of digital disruption in the banking sector. This paper concludes that lawmakers should establish a sound regulatory framework in the country to safeguard consumers and corporate entities while using technology to reshape the banking sector.