The rise of cybersecurity attacks and other cyber frauds have been highlighted as the most significant challenge facing banks and other financial institutions on the African continent.
This is the finding of a report, which emanated from the “Meeting of Minds” workshop that was spearheaded by Mauritius Commercial Bank (MCB) and leveraged the insight and brainpower of over 35 C-level and senior banking leaders across the African region and beyond.
According to the report, the rise of cybersecurity is also compounded by the lack of technical expertise and familiarity at senior levels and know-how in IT, digitalisation and related transformation programmes.
Other challenges identified by the report, include KYC issues hampering financial inclusion, talent management, retention and development, customers’ education and staff skills gap and IT & digitalisation and transformation programme expertise.
In the report, MCB Group CEO, Pierre-Guy Noël speaks of an alignment of African banks and institutions on the key issues they have to face.
“Considering the relative heterogeneity of African markets in terms of the distinct characteristics and level of maturity in consumer behavior, there was a remarkable alignment on the challenges facing the region’s financial institutions,” he said.
On the main threat posed by cybersecurity, MCB Group CEO observed: “Additionally, there is a lack of appropriate risk assessment and framework that caters to the exigencies arising from the use and adoption of new digital solutions.
He added that the lack of KYC and other compliance frameworks “to facilitate the onboarding of unbanked segments remain a key obstacle for regional banks to further financial inclusion. This challenge emerged in many discussions.