Fast payment of liquidated Heritage Bank customers, traceable through advanced technology

The Nigeria Deposit Insurance Corporation attributes the prompt disbursement of deposits to depositors of the failed Heritage Bank to advanced technology and robust cybersecurity measures.

NDIC Managing Director Bello Hassan made this known at the 2024 Mid-Year Enterprise Risk Management Conference in Lagos.

The event was hosted by the Association of Enterprise Risk Management Professionals.

New members in the emeritus category were also introduced and recently graduated fellows and associates were introduced.

The theme of the conference, “Edgework for Corporate Risk Management: Implementation and Global Best Practices in Capital and Money Markets”, focused on the critical role of the financial system in ensuring economic stability.

Mr. Hassan, represented by NDIC’s Director of Enterprise Risk Management, Amal Haruna, stressed the importance of ERM in preventing financial losses from cyber threats and emphasised the company’s proactive approach in managing risks.

The NDIC director explained that the prompt disbursement of deposits had increased confidence in the banking sector and stabilised the financial system.

He stressed that financial losses could undermine investor and customer confidence and emphasised the proactive measures NDIC is taking in dealing with the risks and liquidation of Heritage Bank.

He said: “These risks are not static; they are adaptive and complex, requiring constant vigilance and innovation in our defence strategies. The Corporation has leveraged technology and cybersecurity risk strategies to ensure we achieve our core mandate of protecting depositors. This is evident from our prompt payment of depositors following the recent closure of Heritage Bank in June 2024, which has greatly increased confidence in the banking sector and provided stability to the financial system.”

Mr Hassan praised regulators for their efforts against emerging threats and commended the event organisers.

Director General of the Securities and Exchange Commission, Emomotimi Agama, highlighted the untapped potential of the Nigerian capital market.

Mr. Agama argued that improved risk management could promote significant growth in the capital market, adding: “An economy without a strong capital market is a weak economy. By adopting ERM, companies can create value for investors, enhance their reputation and contribute to a more stable and efficient capital market.”

Pius Olanrewaju, Chairman of the Chartered Institute of Bankers of Nigeria, noted that organisations with ERM are less vulnerable due to the safety nets provided by extensive experience and knowledge.

Mr Olanrewaju, represented by CIBN Board Member Opeoluwa Awolesi, stressed the importance of cyber security, given the vulnerability of many countries.

Funke Ladimeji, president of the Association of Professional Women Bankers, noted that the scale and depth of risks are increasing and stressed the need for greater focus.

She said financial institutions are among the most vulnerable to risk and urged professionals to provide proactive leadership and direction.

(NAN)