The former Executive Director of E-Business and Infrastructure at Inlaks Computers Limited and a board member of CitiData Centre Ltd., Tope Dare, has advocated leveraging AI to analyze transactions in real time, identify suspicious patterns, and strengthen security in the financial sector.
He emphasized the role of artificial intelligence in detecting financial fraud early.
In a statement, Tope Dare noted that AI is reshaping the banking sector, just as it is revolutionizing other industries.
He highlighted that the nature of interactions between customers and banks is evolving rapidly on a global scale.
“Just late last month, DeepSeek stepped up as a serious contender, challenging the dominance of models like ChatGPT. What makes DeepSeek different? Open-source access, cost efficiency, and strong technical capabilities—a combination that could shake up the AI landscape.
“AI is rapidly reshaping banking, making transactions faster, fraud detection smarter, and customer service more efficient. However, with all these innovations leading to rapid transformation come both opportunities and challenges.
“Cybercriminals are getting more and more sophisticated, but only an AI-powered fraud detection system can help financial institutions to stay one step ahead. By analysing transaction patterns, AI can instantly flag suspicious activities & prevent fraud before it happens. Nevertheless, AI isn’t perfect; misinterpretations and system bias can lead to serious consequences.
“During the last Detty December in Lagos, a friend of mine who came home from Europe had his foreign bank account access deactivated after the first transaction in Nigeria, and despite his best efforts, he couldn’t reactivate it until he returned home. AI made a quick decision, but without human judgement, the foreign bank’s system failed to consider context, leaving him stranded,” he stated.
Dare pointed out that AI chatbots, including those from eBanqo, have revolutionized banking by delivering instant, round-the-clock customer support, improving efficiency and user experience.
“They handle routine tasks like checking balances, funds transfers, and processing loan applications in seconds. Today, AI can analyse your spending habits and provide tailored advice on savings, investments, and credit repayment options. It’s convenient, but at what price?
“For instance, AI relies on vast amounts of personal data, making it an attractive target for cybercriminals. If AI is trained on biased data, it may unintentionally discriminate against certain demographics, affecting loan approvals and financial services.
“On the future of a balance between AI and human expertise, I can only say that AI is here to stay, and its role in banking will only grow and wax stronger. However, banks must strike a balance between automation and human oversight. The best approach? A hybrid model where AI handles routine tasks while humans manage complex concerns. This ensures that banking remains fast, secure, and inclusive, without losing the human touch that customers still value,” he added.
Meanwhile, at the FITC Risk Round Table, themed “Financial System Stability: Leveraging AI for Financial Fraud Detection and Regulations,” FITC CEO Dr. Chizor Malize stressed the importance of emerging technologies like AI in tackling rising cyber threats and digital risks, which have been intensified by technological advancements.
Malize underscored FITC’s dedication to delivering industry insights and promoting stakeholder collaboration to tackle these challenges.
“As the Fraud Risk Report underscores, there is an urgent need for leveraging AI to mitigate risks and bolster the stability of the financial system. FITC has been pivotal in bringing together industry leaders, regulators, and operators to develop AI-driven cybersecurity frameworks and predictive tools. By integrating AI into our training programmes and risk simulations, we empower organisations to anticipate, mitigate, and manage risks effectively,” he said.
