Nigerian Banks Use AI to Transform Financial Services

As Nigerian banks increasingly use artificial intelligence (AI) to improve customer services, experience, satisfaction and optimize operations, financial experts in and outside of the industry have warned them not to sacrifice honesty and trust.

That was the main point from the Association of Corporate Affairs Managers of Banks’ (ACAMB) 4th Stakeholders’ Conference, which took place in Lagos on Thursday.

The event, which had as its theme “AI and the Future of Trust: Reimagining Banking and Financial Services in a Digital-First Era,” brought together top executives and leaders from the communications, technology, and banking industries to consider the importance of incorporating integrity into the adoption of AI and its rising role.

The experts assert that AI certainly improved banking through quicker transactions, more intelligent fraud detection, and increased financial inclusion.

But it also brings up new issues with algorithmic bias, data privacy, and the possible decay of public confidence.

Banking in the age of technology according to Rasheed Bolarinwa, President of ACAMB, stated during the conference that the banking sector is at a turning point and that technology must be applied carefully and openly.

“The very technology we are embracing must not only maintain trust, but also strengthen it. Stakeholder cooperation is essential as AI changes how we serve clients in order to make sure that this change is moral, inclusive, and responsible, according to Bolarinwa.

Banking without confidence is a hollow shell, according to Prof. Pius Olanrewaju, President of the Chartered Institute of Bankers of Nigeria (CIBN), who supported this position.

“General-purpose technology has driven every industrial revolution. AI is that driver now. However, we run the risk of losing the fundamental basis of banking if we embrace it without honesty and openness,” stated Olanrewaju, who was accompanied by Akin Morakinyo, the CIBN Registrar.

The requirement for localized AI, Managing Partner at Verraki Africa and Chairman of the Nigerian Economic Summit Group (NESG), Niyi Yusuf, gave the event’s keynote lecture and emphasized the lengthy development of artificial intelligence (AI), from theory in the 1950s to the deep-learning models of today.

However, he cautioned against applying AI technologies designed for Western markets without first modifying them to account for local conditions.

“We require AI algorithms that are specific to Africa’s culture, languages, and financial habits. Otherwise, we run the risk of implementing solutions that, rather than empowering clients, alienate them,” Yusuf stated.

In order to strike a balance between automation and empathy, supervision, and equity, he underlined the significance of keeping “humans in the loop” in AI-driven banking procedures.

Industry leaders, including Yonodu Okeugo of VFD MFB, Dele Adeyinka, the chief digital officer of Polaris Bank, and Dr. Harrison Nnaji, the chief information security officer of FirstBank, concurred during a panel discussion that the future of AI in Nigerian banking must place a high priority on customer education, open data use, and strict governance.

They pointed out that Nigerian banks are already leading the way in the application of AI on the continent, from facial recognition in digital onboarding to AI-powered fraud detection.

However, they confirmed in agreement that the safeguards that protect consumers must improve along with AI.