During a discussion called "The Efficiency Frontier – AI, RegTech and Cyber Resilience" at the Future of Banking Nigeria Summit hosted by CNBC Africa in Lagos, Inuwa stated that although Nigeria's banking sector has managed significant changes over the last 20 years, new challenges facing the industry demand a fresh strategy.
He pointed out that the sector has consistently shown strength by achieving significant achievements like the 2005 financial institution merger, the 2009 financial regulations changes, and the current funding enhancement process. As per his view, the focus has now moved from merely increasing funds to safeguarding and maintaining this capital within a more digitized economic environment.
"The current issue isn't about securing funding anymore, but rather about safeguarding, maintaining, and increasing that capital within the digital age. Integrity now serves as the basis for contemporary banking, and this integrity needs to be supported by strong digital systems and proper oversight," he stated.
Inuwa noted that digital platforms now serve as the main means through which banks engage with their clients, highlighting the importance of technological reliability, data protection, and consistent service provision in sustaining trust within the banking sector.
He characterized artificial intelligence as a key instrument able to revolutionize banking processes by enhancing efficiency, reinforcing choices, increasing income, and providing tailored financial solutions that meet the demands of tech-savvy clients.
The DG emphasized the increasing significance of regulatory technology, noting that its implementation can streamline adherence to rules, reduce operating expenses, enhance clarity, and reinforce management within financial organizations.
In his view, successful regulation needs to keep pace with technological advancements. He noted that NITDA integrates official regulatory measures with cooperative, technology-supportive methods, enabling new innovations to grow as authorities create suitable guidelines and protections.
"Technological advancement occurs at a significantly quicker pace compared to conventional regulations. Authorities need to collaborate intensively with creators to establish supportive structures that foster progress while safeguarding customers and ensuring trust within the marketplace," he stated.
Taking advantage of Nigeria's growing fintech environment, Inuwa stated that technology has significantly transformed how financial services are provided, allowing clients to create accounts, obtain banking solutions, and perform transactions from a distance without needing to go to brick-and-mortar locations.
He also urged increased cooperation between regulatory bodies to enhance access to financing for small and medium-sized businesses (SMEs). He noted that artificial intelligence-driven credit evaluation systems and digital financial management solutions can enable financial organizations to gain deeper insights into company operations, lower loan risks, and extend credit to previously overlooked enterprises.
Regarding the implementation of responsible AI, Inuwa stated that NITDA's National Artificial Intelligence Strategy offers a structure for applying AI within key industries through collaboration with regulatory bodies, such as the Central Bank of Nigeria (CBN) in the financial services domain.
He mentioned that the Agency is also working on establishing National Standards for Sovereign Cloud systems and data categorization to enhance Nigeria's digital independence and guarantee that crucial national and financial information is properly secured.
Inuwa stated that enhanced cooperation between regulatory bodies, tech pioneers, and banking entities will be essential for developing a safe, robust, and internationally strong financial system that fosters long-term economic development.
Supplied by SyndiGate Media Inc. ( Syndigate.info ).