Financial institution calls for collaboration to tackle digital threats

Africa’s Global Bank, the United Bank for Africa (UBA), has emphasized the need for stakeholders in Nigeria’s financial sector to come together to checkmate growing threats to the country’s digital payment system.

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The Head of Digital Banking at UBA, Olukayode Olubiyi stated this recently at the 2023 annual conference of the Finance Correspondents Association of Nigeria (FICAN) in Lagos where he spoke on the topic ‘Unlocking the Future of Payments’ .

Olubiyi said the regulations covering digital payments should be robust and designed to enable a secure and competitive landscape for digital payments players to run seamlessly as
“lack of proper or insufficient regulatory oversight over the digital payments system could result in major and systemic loss of business.

He stated that “Cybercrime poses a huge challenge for the firms in the digital banking space. Hence, it becomes imperative that institutions secure the data that the criminals are after.”

Olubiyi said banks would have to invest heavily in systems and processes to defend their customers’ data just as
partnerships between banks and fintechs may be required in the use of machine-learning technology systems and artificial Intelligence to proactively prevent potential breaches and data loss.

While noting that digital payments had become an increasing target of cyber hacks and attacks that could result in a loss of confidence in the ecosystem if not addressed, Olubiyi stated that any future-minded institution would want to join in the race of finding a lasting solution.

He stated that cybercrime can be curbed by ensuring efficient cybersecurity through combined security, multi-factor authentication, cyber insurance, consumer awareness, antivirus and anti-malware application.

Future of banking

Olubiyi explained that the use of the Internet of Things (IoT) in the banking industry has the potential to provide customers with a more personalised, convenient and secure banking experience.

“It is predicted that digital wallets will account for more than 50 per cent of all e-commerce payments worldwide by 2024, with account and QR-code-based transactions leading the way.

“The next winners in the digital banking race will be the banks who manage to continuously generate tailored offers and personalised experiences for their customers. The answer to understanding what customers want and need lies within the amount of data across different banking channels, he said.

Olubiyi added that by the end of 2023, the need for a secure and smooth authentication process would prompt nearly 2.6 billion biometric payment users globally.

For his part, the Managing Director of the Nigerian Inter-Bank Settlement Systems ( NIBSS), Premier Oiwoh, emphasised stakeholders’ partnership in the effort to extend e-payment channels across the country.

According to Oiwoh, the partnership will in addition to wider coverage, also help to check abuses, dispense errors, instant resolution of errors as well as give room for updated technological resources in delivering first class e-payment across the country.

The NIBSS boss, who was represented at the conference by the Divisional Head, Enterprise Support, NIBSS, Bola Onigbokan, assured Nigerians that the national payment infrastructures NIBSS, owned by all banks was committed to ensuring seamless transactions, customer protection, and the consistent improvement in technologies driving e-payment systems.