The evolution of artificial intelligence (AI) in the financial sector has completely changed the way businesses deliver services. 

During the Techeconomy Business Series session titled “Major Lessons for Techies in Building Resilient, Customer-Centric Financial Solutions in an AI-Driven World”, experts shared their experiences and insights on how to innovate and maintain resilience while meeting customer needs.

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Defining Resilience in Financial Solutions

Peter Kwakpovwe, founder of Draco Intelligence Ltd UK, broke down the concept of resilience in financial solutions. He stated, “Resiliency in financial solutions is the ability of the system to recover from shock, attack, or disruption, ensuring delivery and usage by customers.” 

He noted that resilience goes beyond simply fixing problems; it requires proactively creating systems that withstand disruptions.

Kwakpovwe shared a real-world example from his career: “We developed an AI-powered digital lending platform aimed at ease of banking, lending, and credit rating for customers. However, we faced challenges like political unrest and economic instability. To overcome these, we built an advanced anomaly detection algorithm to flag fraudulent transactions, an automated failover system, and a robust recovery and backup system.”

These measures ensured the platform could withstand disruptions and continue serving customers efficiently. According to him, “This reaffirmed my belief in AI-driven initiatives within the financial landscape.”

Ethical AI and Balancing Customer Needs

Ayodeji Ogunmola, director of Product Management at Northsnow Ltd UK, spoke on balancing rapid AI innovation with customer expectations. He noted, “The first thing customers want from financial institutions is to have their problems solved. AI brings simplicity to this process, but ethical considerations and transparency are important.”

Ogunmola highlighted two major issues:

1. “How ethical can the AI go?”
2. “Are customers trusting enough to allow AI integration into financial institutions?”

He explained the importance of defining what aspects of financial transactions are handled by AI versus humans. “We’ve seen human errors in resolving issues, but AI can bridge this gap, especially in interactions like chatbots that offer faster service.”

However, he also stressed the need for transparency: “Businesses must inform customers about what AI can and cannot do to build trust.”

Building Trust in AI: Transparency, Ethics, and Customer-Centricity are Key

On building trust in AI-driven financial systems, Moniade Adeniyi, product innovation and business growth strategist at Northsnow Limited, stressed the importance of transparency, fairness, and customer-centricity in AI solutions. 

He stated, “When you’re building an AI solution, it should be clearly explained how the AI system works. Customers need to feel safe and more confident about using the solution.”

Adeniyi also highlighted the need for ethical considerations, urging financial institutions to ensure that AI systems are unbiased. He said, “A financial institution must make sure that AI systems are fair and they don’t favour or harm any group of people.”

Personalised Financial Services

Ogunleye Oluwatobiloba, a data analyst with a fintech background, delved into how AI enhances customer experiences. “AI plays a huge role in delivering personalised financial services by leveraging data-driven insights,” he said.

He outlined key applications of AI:

• Customer Segmentation: “AI analyses customer data, such as transaction history and credit behaviour, to create detailed profiles.”
• Tailored Recommendations: “AI-powered engines suggest financial products like loans or investment options based on individual goals.”
• Chatbots and Virtual Assistants: “These tools, like UBA’s ‘Leo’, offer 24/7 support, handle transactions, and reduce the workload on human staff.”
• Fraud Detection and Prevention: “AI monitors user behaviour for anomalies, flags potential fraud, and notifies users immediately.”

Mitigating Risk with AI

The speakers collectively agreed that risk mitigation is an essential component of resilient fintech solutions. Kwakpovwe mentioned, “AI helps businesses holistically understand risk landscapes and develop de-risking strategies.”

Ogunmola added that iterative feedback and customer research are essential: “AI gathers data, analyses usage patterns, and helps businesses improve their offerings.” This aligns with the overarching goal of resilience—adapting to challenges while maintaining seamless customer experiences.

AI’s prospects in the financial sector are broad but require careful integration. Ogunleye said, “AI’s strength lies in its ability to personalise, automate, and innovate while addressing individual customer needs.” However, ethical considerations, transparency, and robust systems are essential to fostering trust and ensuring resilience.

The panel emphasised the importance of cross-disciplinary collaboration, with Kwakpovwe noting, “You need a strong, high-risk-skinned team to navigate the complexities of AI-driven solutions.”

Building Customer-Centric Financial Solutions Through AI

Peter Kwakpovwe emphasised the importance of leveraging AI to enhance financial literacy and inclusion. He highlighted the Central Bank of Nigeria’s (CBN) ongoing efforts to improve financial literacy through collaborations with banks and financial institutions. 

“By implementing this innovative admin solution, financial services can be customised for people who are particularly underserved and those who are in the underbanked population. But again, AI is data, data, and more data,” he said.

However, Kwakpovwe noted that while AI offers improved efficiency, fraud detection, and personalised customer services, the technology also introduces significant risks.

Adeniyi further noted the role of customer feedback in designing effective AI solutions, stating, “Every AI solution you are building should be tailored towards the customer… When you do all these things, trust is built, and they will want to use your system.”

The Dark Side: Data Privacy and Security Risks

Kwakpovwe did not mince words about the gravity of data privacy breaches, calling it the “data apocalypse.” He cited examples of data leaks in Nigeria, including breaches from major banks and the National Identity database. “The day you plug your product to AI, it automatically has access to everything you’ve had today—your data,” he warned.

To mitigate such risks, he recommended:

1. Robust Encryption: “If you build a database system and there are no strong encryptions, it’s a problem.”
2. Compliance with Data Protection Laws: He stressed the importance of adhering to regulations like GDPR and conducting regular audits.
3. Bias and Fairness Audits: Peter shared a Silicon Valley example where AI algorithms unintentionally discriminated against certain genders in loan approvals, showcasing the need for robust datasets and transparent algorithms.

Over-Reliance on AI: A Critical Pitfall

Kwakpovwe spoke on issues about the over-reliance on AI systems, which can lead to a reduced human thinking process. “Even the most intelligent people today are relying so much on AI,” he said. To address this, he suggested:

• Ensuring human oversight for key decisions
• Using AI as a support tool, not the primary driver of actions
• Investing in education and training to empower professionals with foundational skills

Technological Failures and Systemic Risks

Reflecting on a recent major banking system outage in the UK, Kwakpovwe noted the catastrophic impact of technological failures. “A core banking software issue shut down everything. It became a social media brouhaha,” he said.

To prevent such occurrences, Peter called for:

• Redundancy and Backups: “I’m a big fan of redundancy. You must have backups that have backups.”
• Incident Reporting Plans: Establishing clear protocols for managing AI system failures.

Scaling through Regulatory and Compliance Challenges

On regulatory hurdles, particularly in Nigeria and South Africa, Kwakpovwe stressed the importance of aligning AI systems with financial regulations to avoid fines and restrictions. “You must have regulatory engagement,” he said, adding that ethical AI frameworks and continuous monitoring are essential for compliance.

Adeniyi also stressed the importance of regular audits to maintain compliance and customer confidence, noting, “Regularly review the AI system to ensure they follow the law and meet high standards… This should be transparent to the customer.”

Leveraging AI to Drive Innovation in Fintech Solutions

Speaking on the importance of a systematic approach to deploying AI in financial services, Kwakpovwe said: “First off, there has to be this continuous learning of your data. AI can make decisions for you, but that shouldn’t be the final leg,” he noted. 

He called for hiring and training skilled professionals who can create and refine data models, stating, “You need over a billion scenarios… AI can help you create those scenarios, but you need someone to fine-tune and look at it also.”

Kwakpovwe emphasised the essence of closed user group testing before AI deployment. He explained: “Bring stakeholders into the room… go back to the product requirement document, tick all the boxes one by one… ensure your AI-driven product has achieved what you set out to do. When that’s done, move on to continuous improvement.”

He likened AI development to raising a child: “When you deploy it, AI starts learning on its own. It feeds on data, so regular audits and framework adjustment sessions are critical to ensure the system delivers sustainable value.”

Security and Scalability in AI Systems

The panellists highlighted the importance of cybersecurity in AI-driven systems. Pointing out the emergence of new roles such as large language model (LLM) cybersecurity experts: “These are people building systems to safeguard AI technologies. Such jobs didn’t exist five years ago, but they’re now crucial for protecting data and ensuring system integrity.”

Opportunities for AI in Africa

Addressing the future of AI in Africa, Ayodeji Ogunmola said: “There’s a lot of money in Africa that has not been harnessed yet. Voice-over AI could revolutionise financial inclusion by enabling people, especially those who aren’t tech-savvy, to access services through phone interactions. This can include account creation, KYC processes, and transactions.”

Ogunmola noted the benefits for underserved populations, such as rural farmers: “A farmer named Musa could get access to microloans because AI analyses his farming patterns and mobile data.”

AI’s Role in Fraud Detection and Improved Customer Experience

Fraud detection is an important subject when it comes to AI. Ogunleye Oluwatobiloba expatiated this: “AI can help in fraud detection and prevention by monitoring transaction patterns and reducing fraud rates, building customer trust.”

He noted additional benefits of AI, including:

• Smart payment gateways for instant, secure cross-border transactions.
• Dynamic currency conversion providing real-time rates.
• AI-driven credit scoring systems enabling microloans for customers based on their transaction histories.

AI and Human Expertise: A Synergistic Future

Countering fears of job displacement by AI, Moniade Adeniyi reassured professionals: “AI does not have a mind of its own; it resonates based on the information you provide. Professionals must train AI to respond effectively to human needs. Instead of losing jobs, we’ll be creating scenarios and guiding AI’s learning process.”

Adeniyi noted that this approach would open opportunities across sectors, urging professionals to stay proactive in adapting to the AI era.

Organisations must embrace AI responsibly, ensuring human oversight and continuous improvement. “If you follow these guidelines, you’ll create a system that works as it should—delivering value to both the organisation and its customers in a sustainable way.” This will drive innovation, inclusion, and resilience across the financial sector.

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This era demands a strategic approach to ensure that fintech solutions address evolving customer expectations while remaining secure and adaptable to unforeseen disruptions.

So, how can fintech companies leverage AI for predictive analytics to identify and mitigate potential risks such as fraud, cyber threats, and market volatility? How can cloud-native architectures and microservices ensure fintech platforms handle sudden surges in demand without compromising performance?

Also, how can adaptive AI system be programmed to align with global regulatory changes, ensuring continuous compliance and minimizing legal risks?

Can AI enable hyper-personalization by analyzing user data to provide tailored financial products, advice, and recommendations?

These and more concerns shall be addressed by speakers during Techeconomy Business Series (Webinar #3) holding as follows:

Date: Tuesday, November 26, 2024

Platform: ZOOM (register: https://shorturl.at/cJhgG)

Time: 10:00am (WAT)

Participation is Free, but you are required to pre-register via the link HERE.

Meet the Moderator\Host for Techeconomy Business Series #3:

Chidera Amuta is a dynamic marketing professional with expertise in digital strategy, customer acquisition, and brand communications.

Currently serving as the Marketing Manager at Vendorcredit, she oversees marketing strategy, contract negotiations, and campaign performance analysis, helping to drive company growth.

Previously, Chidera led marketing at Kyshi and growth at FSDH, where she developed data-driven marketing plans and executed cross-platform campaigns.

She holds certifications from the Chartered Institute of Marketing, Orange Academy, and has a background in Orthopaedics Technology from the Federal University of Technology, Owerri.

Meet Techeconomy Business Series #3 Speakers:

Peter Kwakpovwe – Founder – Draco intelligence Ltd UK

Peter Kwakpovwe is a distinguished Data Scientist and business leader based in the UK. As a certified Scrum Product Owner (CSPO) and a champion of data transformation, he has a proven track record of leading successful business transformations through the strategic application of data, finance, and technology.

With over 12 years of experience in various managerial roles, Peter has been instrumental in building digital products and deriving actionable data insights within the Fintech sector and other digital enterprises. His notable achievements span revenue growth, operational efficiency, business development, and product management, earning him numerous awards and recognition in digital media.

Peter’s expertise encompasses product requirement elicitation, business process re-engineering, data analysis, change management, and the development of digital adoption roadmaps.

Ayodeji Ogunmola, director, Products Management, Northsnow Ltd Uk

‘Deji Ogunnmola is a visionary leader with a remarkable track record of igniting growth across product, operations, and business management. His tenured career has spanned diverse industries – financial institutions, FMCG, transportation & logistics, and telecommunications. This breadth of experience allows him to approach challenges with a unique perspective, crafting innovative solutions that unlock significant value.

‘Deji is a strategic mastermind, adept at identifying and capitalizing on emerging market trends. His strong communication skills enable him to rally teams and inspire them to achieve ambitious goals. He fosters a culture of collaboration where innovation thrives and employee potential is maximized.

‘Deji’s results speak for themselves. “He spearheaded 25 products development and successful launch.

His commitment to excellence and data-driven decision-making has consistently delivered exceptional outcomes.

Deji O. is more than just a leader; he’s a catalyst for transformation. He is an invaluable asset for any organization seeking to propel itself to the next level.

Ogunleye Oluwatobiloba, Data Analyst with FINTECH background

Tobi is an excellent and goal oriented individual seeking to pursue a career in information technology, with rich interpersonal and communication skills.

Honed with transferable and soft skills, he is a fast-learner who is result –driven, innovative, collaborative, dependable, trustworthy team player, receptive to learning new set skills and add value wherever he finds himself.

Throughout his journey, Tobi has developed a keen eye for detail and a strong commitment to delivering exceptional results. He is dedicated to identifying and reporting defects promptly, working closely with the development and business teams to ensure timely resolutions.

He is a developer with a keen eye for details, a tester with a knack for uncovering hidden bugs, and a data analyst with a passion for transforming raw data into actionable insights.

His diverse skill set allows him to navigate seamlessly through the various stages of the system development lifecycle.

Moniade Adeniyi, Product Innovation and Business Growth Strategist, Northsnow Limited

Moniade Adeniyi is a seasoned Product Manager with over a decade years of hands-on experience in the Financial Inclusion/Agency Banking and Fintech sectors.

With a strong background in product growth management, Moniade has overseen more than 15 projects and managed hundreds of high-ticket clients, demonstrating a track record of delivering successful outcomes.

According to statista, in 2023, there were 217 fintech startups in Nigeria. Compared to the previous years, the number of startups in this sector experienced an increase. Nigeria has, in fact, some of the highest amounts of fintech startups in Africa.

In this article, Moniade Adeniyi, looks into the intricacies of fintech partnerships, highlighting their role in expanding financial inclusion, fostering innovation, and navigating regulatory frameworks in Nigeria.

1. The Collaborative Advantage

Fintech partnerships in Nigeria epitomize the convergence of traditional financial institutions, agile fintech startups, technology enablers, and regulatory authorities.

This collaborative ecosystem harnesses diverse strengths, combining the deep-rooted expertise of established banks in compliance and risk management with the nimble innovation of fintechs in product development and customer engagement.

Together, they co-create solutions that not only bridge access gaps but also drive operational efficiency and revenue diversification.

2. Empowering Financial Inclusion

One of the most significant impacts of fintech partnerships is the democratization of financial services.

By leveraging digital platforms, mobile technologies, and innovative payment solutions, these collaborations have extended financial access to previously underserved populations, including rural communities and the unbanked.

Initiatives such as agent banking networks, mobile money platforms, and digital lending solutions have empowered individuals and small businesses, fueling economic participation and resilience.

Moreover, fintech partnerships have spurred the development of tailored products that cater to the unique needs and preferences of Nigerian consumers.

From micro-insurance offerings to digital savings mechanisms and affordable credit facilities, these innovations are not only enhancing financial well-being but also fostering a culture of financial literacy and empowerment.

3. Navigating Regulatory Dynamics

In tandem with fostering innovation, fintech partnerships navigate the complex regulatory landscape of Nigeria’s financial sector. Regulatory bodies like the Central Bank of Nigeria (CBN) have recognized the transformative potential of fintech and have introduced frameworks such as Regulatory Sandboxes and Open Banking guidelines to promote responsible experimentation and collaboration.

These initiatives provide a safe space for testing new ideas, fostering interoperability, and ensuring compliance with regulatory standards.

Furthermore, partnerships between fintech entities and regulatory authorities facilitate knowledge exchange, capacity building, and adherence to best practices.

This collaborative approach not only promotes regulatory compliance but also fosters trust and transparency within the ecosystem, instilling confidence among consumers and investors alike.

4. Opportunities and Challenges Ahead

Looking ahead, fintech partnerships in Nigeria face both opportunities and challenges. The rise of digital identity solutions, blockchain technologies, and artificial intelligence presents avenues for enhanced security, efficiency, and personalized services.

Collaborative efforts can leverage these advancements to address cybersecurity risks, enhance data privacy, and strengthen fraud prevention measures.

However, challenges such as talent acquisition, funding access, and interoperability remain areas of focus for fintech partnerships. Collaborative initiatives must prioritize talent development, foster an enabling investment environment, and promote industry-wide standards to drive sustainable growth and resilience.

Therefore, fintech partnerships and ecosystems are at the forefront of Nigeria’s financial transformation journey.

By fostering collaboration, driving innovation, and embracing regulatory compliance, these partnerships are not only unlocking economic opportunities but also driving inclusive growth and empowerment.

As stakeholders across the ecosystem continue to collaborate and innovate, Nigeria’s fintech landscape is poised for sustained impact, driving socioeconomic progress and resilience across diverse communities.

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Who is Moniade Adeniyi?

Moniade Adeniyi is a seasoned Product Manager with over 8 years of hands-on experience in the Financial Inclusion/Agency Banking and Fintech sectors.

With a strong background in product growth management, Moniade has overseen more than 15 projects and managed hundreds of high-ticket clients, demonstrating a track record of delivering successful outcomes.