Wema Bank Plc and the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) have called on financial institutions, regulators, technology partners, and law-enforcement agencies to strengthen cybersecurity, data governance, and internal controls. This appeal was made at the 65th Quarterly General Meeting of ACAEBIN in Lagos, which focused on the theme "Auditing the Future: Governing AI, Cyber Risks and Digital Trust in an Era of Intelligent Banking." The meeting highlighted the need for a collaborative approach to address emerging risks in the banking industry.
The Managing Director/Chief Executive Officer of Wema Bank, Moruf Oseni, emphasized that the banking industry is undergoing a profound transformation driven by emerging technologies such as artificial intelligence, advanced analytics, digital platforms, and automation. This transformation is creating new dimensions of risk, including AI-enabled fraud, deepfakes, identity manipulation, cyberattacks, API vulnerabilities, data breaches, and business email compromise. Oseni stressed that these risks require immediate attention from boards, management, regulators, and assurance functions.
Oseni further emphasized that as customers increasingly interact with financial institutions through digital channels, preserving digital trust must become an enterprise-wide priority. He added that internal audit functions must evolve to play a more forward-looking, technology-enabled, and insight-driven role. This role will enable boards and management to anticipate risks and challenge assumptions effectively. The evolution of internal audit functions is crucial in addressing the emerging risks in the banking industry.
Aina Amah, Chairperson of ACAEBIN, highlighted the need for innovation to be accompanied by robust governance, effective controls, cyber resilience, and accountability. ACAEBIN has expanded its engagement beyond the banking and professional community through dialogue with the Nigerian Police Force National Cybercrime Centre. This dialogue focuses on cybercrime, fraud trends, intelligence sharing, and stronger collaboration among law enforcement agencies, financial institutions, and internal auditors.
Chisom Odobeatu, Senior Manager, Information Technology and Control Assurance at Deloitte Nigeria, emphasized the need for assurance providers and audit executives to continuously upgrade their skills. The increasing technology dependence of the banking industry requires auditors to move beyond traditional approaches and adapt to the rapidly changing technology-driven banking environment. This adaptation is essential to effectively address emerging risks and ensure the stability of the financial sector.
The 65th Quarterly General Meeting of ACAEBIN provided a platform for stakeholders to discuss the future of auditing in the banking industry. The meeting highlighted the importance of collaboration and information sharing in addressing emerging risks. It also emphasized the need for financial institutions to prioritize digital trust and invest in robust governance, effective controls, and cyber resilience.
The call for enhanced cybersecurity, data governance, and internal controls comes as the banking industry continues to evolve in response to emerging technologies. Financial institutions, regulators, and assurance functions must work together to address the emerging risks and ensure the stability of the financial sector. By prioritizing digital trust, robust governance, and effective controls, financial institutions can mitigate risks and maintain customer trust in the digital age.
Key points
- Financial institutions must prioritize digital trust and invest in robust governance, effective controls, and cyber resilience to address emerging risks.
- Internal audit functions must evolve to play a more forward-looking, technology-enabled, and insight-driven role in addressing emerging risks.
- Assurance providers and audit executives must continuously upgrade their skills to adapt to the rapidly changing technology-driven banking environment.
