Banks urged to maximise benefits, mitigate risks of AI

Nigerian banks have been urged to harness the full potential of Artificial Intelligence (AI) whilst proactively mitigating its risks to deepen financial inclusion and prevent fraud in the financial system.

Highlighting the transformative power of technology from the internet to self-driving cars, electric scooters, and hyperloop systems, Olaniyi Yusuf, managing partner at Verraki, a pan-African business and technology solutions firm, noted that innovation is reshaping how people, goods, services, and information are moved, whilst also transforming the modern workplace.

Speaking at the annual stakeholders’ conference organised by the Association of Corporate & Marketing Communications Professionals in Banks in Nigeria (ACAMB) in Lagos, Yusuf said, “Artificial Intelligence has emerged as one of the most transformative technologies of the 21st century, shaping industries and revolutionising the way we live, work, and interact. AI has come a long way from its nascent stages to the sophisticated systems we see today.”

He explained that AI is redefining financial services, especially in self-service banking, where it is being applied to predictive maintenance, fraud detection, and personalised ATM experiences. He pointed to key opportunities for banks in the areas of financial inclusion, fraud prevention, workforce transformation, operational efficiency, and personalised finance.

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While AI is a powerful tool capable of tackling complex problems at scale, he warned that it also comes with significant risks, such as the spread of misinformation, algorithmic bias, and other unintended consequences that can affect employment and democratic values. He stressed the need for deliberate strategies to maximise the benefits of AI whilst addressing these risks effectively.

Yusuf called for a strong governance structure that defines trust parameters and establishes AI guardianship, enabling consent-driven systems that promote trust and inclusion. He also emphasised the importance of ethical AI development and human-centric design, as well as building public awareness, digital literacy, and technical skills to support a more inclusive AI ecosystem.

He urged the promotion of transparency, explainability, and accountability in AI systems through regulation, data privacy frameworks, and enhanced consumer protection. Local regulatory bodies, he added, should encourage innovation by enabling the use of local datasets, strengthening consumer safeguards, and promoting international collaboration to reduce the cost of AI adoption.

Supporting AI start-ups and entrepreneurs is also crucial, Yusuf said, to ensure that innovation thrives and that failures are not fatal. He stressed that Nigeria must move from being a consumer of AI to becoming an active contributor to its development.

In his welcome remarks, Rasheed Bolarinwa, President of ACAMB, said the theme of this year’s conference, “AI and the Future of Trust: Reimagining Banking and Financial Services in a Digital-First Era,” is both timely and critical.

“As we gather today at the iconic CIBN Bankers House, we stand on the threshold of a transformative era, one driven by artificial intelligence, digital technologies, and a redefinition of customer expectations in banking and financial services,” Bolarinwa said.

He noted that ACAMB’s mission has always been to foster excellence in corporate communications and stakeholder engagement across the banking sector. “This conference brings together thought leaders, innovators, regulators, and practitioners to shape the future of our industry responsibly and sustainably,” he added.