NIBSS Discusses The Future of Payments With AI at The Nigeria Fintech Week
Nigeria Inter-Bank Settlement System (NIBSS) which is responsible for the transfer and settlement of funds between banks in Nigeria, at the Nigerian Fintech week, discussed the future of payments with AI.
The MD and CEO Premier Owoh, during a panel session, said that the adoption of AI will play a significant role in making payments seamless and enhance open banking inclusivity.
He further outlined the significant benefits of AI applications in payments which include, process automation, AML features, improving security and fraud protection, providing credit and virtual loans, algorithmic trading, and personalized customer experiences with humanoid cast services.
However, he stressed that there are several challenges that exist in AI adoption which include the desire for real human interactions, risks of malicious actors exploiting AI systems, and data quality concerns.
To solve these challenges, Mr. Oiwoh noted that AI’s adoption in the Nigerian payment space requires improved regulatory laws as well as multi-factor authentication, continuous AI training, and efficient data warehousing.
Other speakers on the panel session stated that there is a need for more comprehensive regulation regarding intellectual property, data protection, automation, and ethical issues related to the use of AI.
The panel highlighted the immense potential of AI, stating that it has made a lot of progress in Nigeria, especially in the area of fraud protection, but stressed the importance of oversight to prevent misuse.
Several takeaways from the Panel session
- Nigeria does not have any regulatory framework regarding AI, hence the need to formulate one.
- Human intervention is needed in AI in the payment industry
- AI needs to be regulated to avoid misuse.
Reimagining Al for the future of payments represents a transformative approach to how artificial intelligence can revolutionize and enhance the entire Nigerian payment ecosystem.
Notably, this integration of advanced Al technologies can shape the future of payments in the following ways:
Personalization and Customer Experience: Al can be leveraged to provide highly personalized payment experiences. By analyzing user data and behavior, Al systems can tailor payment options, recommend products or services, and streamline the checkout process for individual users.
Enhanced Security: Al plays a pivotal role in payment security. It enables the detection of fraud and suspicious activities in real time by analyzing transaction data, user behavior, and patterns. Al-driven biometrics and authentication methods also strengthen security.
Seamless Transactions: Al-powered chatbots and virtual assistants can facilitate seamless transactions, responding to user inquiries, troubleshooting issues, and guiding users through the payment process. This creates a user-friendly experience and reduces friction.
Regulatory Compliance: Al can assist in ensuring regulatory compliance by monitoring transactions for suspicious activities and automating compliance reporting, reducing the risk of penalties and legal issues.
In summary, Reimagining AI for the future of payments in Nigeria envisions a future where payments are not just secured and seamless, but tailored to users’ experiences.
