Expert Highlights Security Challenges in Digital Banking at CIO Awards

Agnes Ekebuike

Chairman of Wema Bank, Dr. Yemisi Olurunshola, has warned against the rise of cyberattacks on digital banking, despite the opportunities that digital banking brings.  

Olurunshola gave the warning while delivering a keynote speech on the evolving landscape of financial services and the increasing need for robust security measures in the face of digital transformation, during the CIO and C-Suites awards night, which held in Lagos, recently.

Represented by the Chief Compliance Officer at Wema Bank, Oluwatoyin Karieken, the bank chairman discussed the rapid advancements in banking technology and the vulnerabilities that the innovations have introduced.

Although Olurunshola emphasised how digital platforms such as mobile apps, peer-to-peer lending, digital wallets, and blockchain-based solutions were revolutionising the financial services sector, she however warned that while these innovations are enhancing accessibility and efficiency, they could also bring with them increased risks, particularly in cybersecurity.

“Cybercrime is rising, and digital forms of attack are becoming more sophisticated. From phishing scams targeting unsuspecting users to API vulnerabilities that expose platforms, fintechs are under constant threat,” she stated.

She highlighted how cybercriminals were not just targeting individual institutions but the entire ecosystems of interconnected digital platforms. She explained that as financial services evolve, so do the methods of those seeking to exploit the systems for personal gain. 

Her speech delved into several key security risks, including phishing, data breaches, and fraudulent transactions. She said the threats would not only result in financial losses, but also have significant legal and reputational consequences for institutions involved. The discussion however framed cybersecurity as an essential aspect of business continuity in the digital age.

Olurunshola advocated for a multi-layered approach to security, integrating cutting-edge technologies and regulatory compliance to safeguard users. One such solution she proposed was the use of multi-factor authentication and behavioral algorithms to detect fraud and ensure secure digital transactions. She also stressed the importance of user education in preventing attacks, particularly those stemming from social engineering tactics.

The panel discussion that followed focused on ‘Digital and Banking in Nigeria: Balancing Accessibility and Security,’ addressing the need for financial institutions to balance innovation with the protection of user data. Experts discussed how digital transformation should not come at the expense of security, stressing that as the industry embraces technological advancements, it must remain vigilant in safeguarding customer trust.

The event served as an important platform for thought leaders in the fintech and banking sectors to discuss the evolving challenges and opportunities in the digital financial landscape.

Highlight of the event, was the award of excellence, presented to individuals and organisations that have contributed immensely to the growth of the sector.