Technology to help curb fraud in banks

Tuesday August 20 2019

Experts warn of emerging challenges brought by

Experts warn of emerging challenges brought by innovations. FOTOSEARCH 

PATTY MAGUBIRA
By PATTY MAGUBIRA
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The Deputy Governor of the Bank of Tanzania Dr Bernard Kibesse is rooting for security and privacy of customer information.

Dr Kibesse wants the banking industry to utilise the technology at their disposal to secure customers’ trust.

He was addressing middle and senior level cadres in the financial services sector, academia, government and regulatory bodies from six countries gathered in Arusha to discuss ethics and best practices in digital banking and finance.

“Trust is the central ethical pillar for financial service professionals. Much as we handle the money belonging to other people, we must earn their trust,” he said.

The annual forum—19th East African Banking School—which seeks to address emerging challenges and opportunities for fintech was organised by bankers of Kenya, Tanzania and Uganda. Experts from Nigeria, India and the US were in attendance.

While East Africans have been sending and receiving money and loans instantly courtesy of new and radical transformations in financial services, the executive director of the Tanzania Institute of Bankers Patrick Mususa warned of emerging challenges brought by the innovations.

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He cited fraud and lack of laws and regulations to control vices.

Gilbert Om’mbongo, the acting chief executive of Kenya Institute of Bankers, said the basis for embracing technology should be trust and integrity.

“If the systems perform well, our economies will also grow,” he added.

He said Kenya witnessing cyber crime where bank staff conspire with con artists.

But by using digital and agent channels to move customers out of banking halls, banks have extended alternative channels, downsized branch networks and capacity, thereby eliminating some services from the halls.

Some of this technology has, however, also introduced some disruptions in the financial services, sector such as staff reassignment and redundancy.

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