The Nigeria banking sector has witnessed significant growth and innovation with the advent of digital banking, mobile payments, and online transactions. However, this growth has also introduced new risks and challenges, particularly in the area of fraud and cybersecurity says Rotimi Famuwagun, a seasoned IT expert.
To mitigate these risks, Famuwagun asserts that IT professionals must play a vital role in protecting the integrity, confidentiality, and availability of banking information systems.
Disclosing further in a recent press statement, Famuwagun who works as Chief Information Officer at First City Monument Bank (FCMB), noted
that Nigerian banks must prioritize customer education as a critical component of their risk management strategy.
He said, “Customer education is essential in empowering bank customers with the knowledge and skills necessary to protect themselves from fraud and other financial crimes.”
He disclosed that one of the primary reasons why customer education is crucial in Nigeria is the prevalence of fraud in the banking sector.
“Fraudsters often target unsuspecting bank customers, using tactics such as phishing, social engineering, and identity theft to gain unauthorized access to their accounts.
By educating customers on how to identify and prevent these types of fraud, banks can significantly reduce the risk of financial losses and damage to their reputation.” He added.
The expert noted that customer education can also help to promote a culture of security and responsibility among bank customers, encouraging them to take an active role in protecting their financial information.
Nigerian banks can sustain customer education through various channels, including:
Workshops and seminars, social media campaigns
Online tutorials and videos, print and electronic newsletters, collaborations with financial literacy organizations among others.
Famuwagun explained further that by investing in customer education, Nigerian banks can not only reduce the risk of fraud but also promote financial inclusion, customer loyalty, and retention.
He opined that educated customers are more likely to use banking services confidently and effectively, leading to increased customer satisfaction and loyalty.
Concluding, he stated that sustaining customer education is critical for Nigerian banks to mitigate the risks associated with fraud and cybersecurity.
“By empowering customers with the knowledge and skills necessary to protect themselves, banks can promote a culture of security and responsibility, reduce financial losses, and promote financial inclusion.”