The third edition of TechConnect (TechConnect 3.0) hosted by Interswitch, was packed with insights from industry leaders, fintech experts, and financial institutions dissecting the emerging trends, challenges and opportunities within Nigeria’s dynamic fintech sector.
The theme, “Adapting, Scaling, and Advancing with Fintech,” reflects the urgency for innovation and resilience in the face of escalating fraud in the sector.
Added to this, TechConnect 3.0 showcased various business opportunities, with a spotlight on Interswitch’s fintech solutions.
From the Virtual Card Solution, addressing challenges in card profitability, to the Tokenization Solution enhancing security, and Fintech Card Issuance empowering fintech companies to issue cards leveraging a bank’s BIN, Interswitch demonstrated its comprehensive suite of offerings.
Speaking at the event, Akeem Lawal, Managing Director, Payment Processing and Switching, Interswitch Purepay, captured the mood of TechConnect 3.0 thus:
“TechConnect 3.0 exhibits Interswitch’s unwavering commitment to leading the charge in the advancement of the payment ecosystem. Interswitch has been at the frontiers of innovation in Africa particularly in the financial sector and is utilizing cutting-edge technological solutions that can facilitate contactless payment transactions. Today, Interswitch’s digital innovation cuts across peer-to-peer lending, bots, biometrics, mobile banking, blockchain, artificial intelligence, and decentralized finance (DeFi), among others to help address scaling challenges and empower individuals and communities to break free from the clutches of poverty.”
The Card Fusion Platform, Tranzaxis for credit and prepaid card solutions, are an epic addition to the Fintech scale.
What’s a comprehensive study without digging deep into the roots? TechConnect 3.0, held across five major cities in Nigeria, traced the evolution of card issuance in Nigeria.
Looking into the introduction of the first ATM cards in the late 1980s and then the proliferation of mobile banking in the 2010s, the narrative brought to light the unignorable impact of electronic banking services on the financial sector.
Notably, TechConnect 3.0 highlighted the acceleration of contactless payments, a trend heightened by the COVID-19 pandemic, and the growing partnerships between banks and fintechs to issue cards. Interswitch’s Fintech issuance solution was key in powering these trends, pronouncing the company’s influence on the current state of the industry.
Future of Cards: Anticipating Innovations
The programme didn’t just focus on the present and past, but also offered a glimpse into the future of card technology. Envisioning digital-only banks, increased adoption of contactless payments, enhanced security measures, and potential cryptocurrency integration.
Key Insights from Nigeria Fraud Analytics
TechConnect 3.0 revealed an overview of Nigeria’s fraud space. Specifically, between 2018 and 2022, Fraud Count and Loss Values surged by 162% and 581%, respectively.
Despite a marginal decrease in reported fraud count in 2022, actual losses increased by 12%. Interswitch brought to light the alarming N35 billion attempted fraud in 2022, showing the critical need for collaborative efforts in combating fraudulent activities.
Introducing ISaaS Platform
One of the highlights of the event was the unveiling of Interswitch’s iSaaS (Interswitch Security-as-a-Service) platform.
ISaaS was built as an enterprise-grade solution leveraging Machine Learning, Adaptive Behavioral Analytics, and Automated Deep Behavioral Networks. This comprehensive platform aims to empower fraud and anti-money Laundelring analysts with real-time customer data, providing a robust defense against various fraud types, including Card Fraud, Application Fraud, Payment Fraud, and more.
The ISaaS platform further illustrates Interswitch’s mission to provide end-to-end solutions for the evolving needs of businesses in the fintech space.
Customized Detection Capabilities
ISaaS asserts an impressive range of detection capabilities, from identifying compromised credentials to monitoring abnormal debit patterns.
The platform’s ability to operate independently of a bank’s CMS (Card Management System) was highlighted as a significant strength, ensuring performance even in the event of CMS compromise.
ISaaS also demonstrates its prowess in detecting stolen card credentials, first-time Card-not-present transactions, and intricate fraud scenarios involving betting and high-risk merchants.
Fraud Prevention Practice and Strategies
The programme pointed to the importance of robust fraud prevention strategies, urging financial institutions to adopt risk-based frameworks. Various preventive measures were discussed, including comprehensive vulnerability testing, constant monitoring, and leveraging multi-factor authentication.
The speakers reiterated the need for continuous fraud awareness, urging stakeholders to stay vigilant against evolving fraud tactics.
Microfinance Banks and Financial Inclusion
In a broader context, Interswitch highlighted the inevitable role of microfinance banks in driving economic growth and financial inclusion.
The discussion noted how digitalization has enhanced access to lending services, making processes more convenient and efficient.
The zeal to design cutting-edge solutions for microfinance banks was brought to the forefront, emphasizing the role of technology in streamlining loan processes.
Collaboration and Partnerships
Throughout the programme, the importance of collaboration and partnerships was a recurring theme. Interswitch emphasized that partnerships are fundamental to successful digital transformation, particularly in the face of dynamic technological changes.
The call for collaboration extended beyond individual financial institutions to encompass the broader fintech ecosystem.
TechConnect 3.0, was a strategic forum for addressing the challenges brought about by the escalating fraud landscape in Nigeria. The introduction of the ISaaS platform marked Interswitch’s readiness to leverage advanced technologies for robust fraud prevention.
While the emphasis on collaboration, partnerships, and a risk-based approach highlighted the collective responsibility in fortifying Nigeria’s financial sector against evolving threats, the event succeeded in fostering dialogue, sharing insights, and charting a course for a resilient and innovative fintech future in Nigeria.
Speakers, panellists and attendees at Techconnect 3.0: