The Managing Director/Chief Executive Officer of Wema Bank Plc, Moruf Oseni, has emphasized the need for audit executives in the banking sector to strengthen collaboration. This is in response to the rapidly transforming industry driven by emerging technologies such as Artificial Intelligence (AI), automation, and advanced analytics. Oseni made this statement at the 65th Quarterly General Meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN).
The banking industry is undergoing a significant transformation driven by technological innovations. These innovations are redefining how financial institutions serve customers, manage operations, and create value. However, Oseni noted that this transformation also brings new dimensions of risk, including AI-enabled fraud, deepfakes, identity manipulation, and cyberattacks. He stressed that these risks demand the attention of boards, management, regulators, and assurance functions.
Oseni highlighted the importance of preserving digital trust in the banking sector. As customers increasingly interact with financial institutions through digital channels, the preservation of digital trust must become an enterprise-wide priority. This requires responsible innovation, resilient technology infrastructure, robust cybersecurity, sound data governance, effective internal controls, and leadership that understands both the opportunities and risks associated with emerging technologies.
The Chairperson of ACAEBIN, Aina Amah, also spoke at the meeting. She noted that artificial intelligence, digitalization, automation, and interconnected platforms are redefining banking, creating unprecedented opportunities and introducing new vulnerabilities. Amah emphasized that as Chief Audit Executives, they must ensure that innovation is accompanied by robust governance, effective controls, cyber resilience, and accountability.
ACAEBIN has taken deliberate action to respond to the changing realities in the banking sector. The association's Training Academy has expanded its capacity-building agenda to include areas such as AI, Blockchain and Smart Contracts, Fraud Risk Assessment and Forensic Audit, Data Analytics, and the auditing of Financial Institutions and FinTechs. This move aims to equip audit executives with the necessary skills to address emerging risks.
The meeting provided a platform for audit executives to discuss the challenges and opportunities presented by emerging technologies. Oseni and Amah stressed the need for collaboration and robust governance to mitigate the risks associated with digitalization. The Association of Chief Audit Executives of Banks in Nigeria plays a crucial role in promoting best practices in the banking sector.
The banking sector's evolving risk landscape requires internal audit functions to become more proactive, technology-enabled, and data-driven. Audit executives must prioritize digital risk controls and ensure that innovation is accompanied by robust governance and effective controls. By doing so, they can help maintain trust in the banking sector and promote sustainable growth.
Key points
- Wema Bank MD Moruf Oseni calls for strengthened collaboration among auditors to address evolving digital risks in the banking sector.
- The banking sector faces an evolving risk landscape driven by digitalization, cyber threats, and increasingly sophisticated technology.
- ACAEBIN has expanded its capacity-building agenda to include areas such as AI, Blockchain and Smart Contracts, and Data Analytics.
