Nigerian banks urged to boost transparency, data security

An expert in finance, Adejoke Adejumo, has said that the Nigerian banking sector is facing a complex landscape in 2024, with rising inflation and stringent credit policies posing significant challenges.

A comprehensive approach to improving financial transparency, compliance, data security, and fraud detection is essential to addressing these challenges, Adejoke Adejumo noted.

According to Adejoke Adejumo, implementing regular audits of internal control systems is crucial for maintaining the integrity of digital banking operations.

These audits help identify vulnerabilities, ensure compliance with regulatory requirements, and improve overall operational efficiency, Adejoke Adejumo explained.

In the Nigerian context, this aligns with the Central Bank of Nigeria’s (CBN) guidelines for banks and other financial institutions, emphasising the importance of regular assessments to maintain compliance with regulations, Adejoke Adejumo said.

Nigerian banks are increasingly adopting advanced technologies such as artificial intelligence (AI), machine learning (ML), analytics, and robotic process automation (RPA) to stay ahead of cyber threats and improve operational efficiency, Adejoke Adejumo observed.

AI and ML can analyse vast amounts of data to detect anomalies and potential fraud in real-time, Adejoke Adejumo noted.

Advanced analytics tools help banks gain deeper insights into customer behaviour, risk profiles, and market trends, Adejoke Adejumo said.

Robotic process automation (RPA) can significantly improve operational efficiency and reduce the risk of human error in critical processes, Adejoke Adejumo explained.

Protecting sensitive financial information is paramount in the digital banking sector, and Nigerian banks must implement multi-layered security measures to safeguard customer data, Adejoke Adejumo emphasised.

Nigerian banks must continually evolve their fraud detection capabilities to stay ahead of sophisticated fraudsters, Adejoke Adejumo warned.

Maintaining compliance with evolving regulations is critical for digital banks in Nigeria, and automated compliance monitoring, transparent reporting, and regular training are essential for maintaining a secure and compliant operation, Adejoke Adejumo said.

The Nigerian banking sector faces significant challenges in 2024, but by implementing regular audits of internal control systems and leveraging advanced technologies, banks can enhance their operational efficiency, security, and integrity, positioning them for long-term success in an increasingly digital world, Adejoke Adejumo concluded.

Furthermore, Adejoke Adejumo highlighted the importance of customer education and awareness in preventing fraud and promoting digital banking adoption.

Additionally, Adejoke Adejumo stressed the need for collaboration between banks, fintechs, and regulators to develop innovative solutions and standards that address the unique challenges of the Nigerian banking sector.

ALSO READ THESE TOP STORIES FROM NIGERIAN TRIBUNE 

• Keep your information safe, stay secure online, NIMC warns Nigerians

• Petrol hits ₦937 per litre in Jigawa — NBS

• FG terminates contract with Mothercat, Dantata, RCC for non-performance

• JUST IN: Many feared trapped in Abuja building collapse

• FG approves deduction of tax at source — Oyedele