The Central Bank of Nigeria (CBN) has expressed deep concerns over the impact of digitalization on the operations of banks in the country.
Governor of the apex bank, Godwin Emefiele, disclosed this at the 19th edition of the National Seminar on Banking and Allied Matters for Judges, organized by the Chartered Institute of Bankers of Nigeria (CIBN) in Ahuja, said fast automation and technological advancement has changed the way the country learns, communicates, and delivers services.
He stated that continuous technological innovations in the world, around artificial intelligence, robotics and blockchain technology have disrupted and have the potential to further disrupt the financial service sector.
He disclosed that the risk of cyber threat was noteworthy, given the heavy dependence of market players on technological infrastructure and digital technology. He noted that the impact of cyber-attacks is not limited to financial losses, but also an impairment of the trust of the citizenry in the financial system.
Emefiele stated that the effect of technological innovations was conspicuously evident in the financial services system as digital finance and financial technology (Fintech) had seen quick adoption, altering normal banking models and creating new opportunities for structuring and distributing financial services.