Stakeholders in the financial sector are advocating for the adoption of advanced technologies in digital banking to stay ahead of the escalating threat of cybercrime and ensure a secure online environment.
The consensus was reached at the 2024 Quarter II Industry Forum, hosted by the Committee of E-Business Industry Heads, held in Lagos.
Themed “Cybercrime: Enhancing Consumer Trust and Security with Artificial Intelligence,” the forum brought together key industry leaders to discuss innovative solutions for protecting digital banking consumers.
In an interview, the Chairman of the Committee of e-Business Industry Heads, Celestina Appeal, revealed the alarming rate of fraud in the industry, emphasising the need for AI adoption to curb the menace.
She warned that fraud could occur in a matter of seconds, resulting in significant financial losses for customers.
She stressed that leveraging AI was crucial to detect fraudulent transactions in real-time, enhancing customer security and trust.
She lamented that fraud had eroded customer trust and compromised the safety of transactions, posing a significant threat to the growth of the digital economy.
As the industry continues to innovate and adopt new technologies, Appeal emphasised the importance of prioritising security to ensure customer trust and confidence in the digital era.
Cybercriminals are becoming more sophisticated, emptying bank accounts, and causing financial losses in the tune of $500m annually, according to the Nigerian Senate.
The Nigerian Inter-Bank Settlement Systems reported that transactions worth N32.3tn were performed electronically in August 2020, with a volume of 448 million transactions, a 10.6 per cent increase over the preceding month.
The Nigerian Communications Commission has issued several security alerts since the beginning of 2022 to warn Nigerians about the dangers of cybercrime.
The Federal Government also amended the Cybercrime (Prohibition and Prevention) Act, of 2015, to put an end to the exploitation of Nigeria’s digital space by cybercriminals and certain individuals with misguided intentions.
The Vice President of Cybersecurity Consulting Practice Lead: EEMEA (ex CISO) at Mastercard, Amit Mehta, stated, “There is no doubt that new technologies are rapidly evolving. What we should be most bothered about is not the technology itself, but its essence in the consumer experience.
“AI is one of such innovations that digital banking cannot play down because of the disruption it has and will continue to bring into the financial services ecosystem.
“Key issues that digital banking has been grappling with can be resolved by AI. A typical example is the ability to generate automated responses for the customer experience. However, there is a need for the assessment of the deployment of AI.”
The Chief Executive Officer of Autogon AI, Obi Ebuka, explained how advanced technologies could revolutionise cybersecurity by enabling real-time threat detection and adaptive security measures that outperform traditional methods.
He stressed the importance of integrating these technologies into cybersecurity practices to create a safer and more trustworthy digital environment for consumers, as digital banking continues to expand and evolve.
Speaking during the panel discussion, Afolabi Solebo, General Manager of the Lagos State Consumer Protection Agency, highlighted the growing sophistication of cyber threats and called for the development of innovative solutions to bolster consumer trust and confidence in online banking platforms.
Solebo highlighted the effectiveness of advanced technologies in reducing fraud and enhancing user experience in digital banking, citing concrete examples of successful implementations that have made online banking more secure and user-friendly.
“Our mission is to ensure that every Nigerian can confidently bank online, knowing their data is secure. Advanced technologies are pivotal in achieving this goal, and we will continue to champion their responsible and effective use,” Solebo affirmed.
