General News
How AI is transforming the financial services industry
By Ibrahim Youssry – Regional General Manager, North, West, East, Central Africa, Levant & Pakistan, Microsoft
Digital transformation is remaking the world around us, and artificial intelligence (AI) is a frontrunner. No industry will be left untouched by this digital journey, but one sector that is seeing the fastest and most fundamental effects is the financial services industry (FSI).
FSI players are geared to be dramatically disrupted by the power of AI – both internally (in the ways they operate) and externally (in terms of dealing with clients and customers).
A 2018 report from the World Economic Forum (WEF) on The New Physics of Financial Services unpacks this phenomenon at length, but one high-level take-away is that the AI changes here cannot be overstated. The long-term impacts of AI are radical and transformative, putting the FSI ecosystem into a period of reorganisation.
Competition from the underdogs
FSI has traditionally been dominated by large and established corporations, often with extensive heritage and market dominance. Through this, many FSI companies have enjoyed relatively low competition for customers, and have been slow to innovate and change ‘with the times’. Enter the leveling power of the cloud, accessible analytics and machine learning, and we see how a scrappy, determined fintech startup can disrupt a whole market or sector.
Many of these startups offer alternatives for banking, payments, transfers, payroll, credit, and other financial services. These digital-first businesses are highly agile, and are creating a whole new customer base that was underserved by established FSI companies – putting the pressure on older firms.
As a result, many FSIs have started embracing cloud technology and artificial intelligence (AI) to improve their own agility, their array of service offerings, and their customer experiences. Recent studies suggest that approximately 40 percent of African banking customers prefer to use digital channels for transactions over branch channels.
Added competition is good for the entire industry, and customers will benefit from new and improved technologies that change the way the industry interacts with them and meets their expectations.
AI at the core of digital transformation
But just what form do these advances take? AI lies at the heart of things like chatbots, advanced customer credit assessment, relationship management, security, anti-money laundering and fraud detection.
Chatbots draw from big data and machine learning to respond to customer queries and concerns. They can streamline customer support on routine services like banking transactions, and make product recommendations. This is customer-facing AI that helps FSI companies be ever-present for their clients, while reducing the resources required to do so.
For fraud detection, AI-powered technology enables computers to mimic, extend and amplify the thought process of a human analyst, at a pace and scale unmatched by humans. It can review trillions of transactions in every possible portfolio in the organisation. Because of this, banks, fintechs and payment facilitators are able to detect or be alerted to potential fraud – receiving fast, efficient and accurate alerts of the likelihood of an individual’s card or account being compromised, for example.
Foresight beats hindsight
AI and analytics can draw inference from vast stores of data and spot trends that are often beyond the possible scope of human sight, driving insight to analysts, investors and the like. AI is also able to evaluate an organisation’s public remarks and documents, bundle that up with sentiment analysis, and cross-correlate this with historical data to predict the performance of upcoming stocks, in literal split seconds.
These functions provide agility and resilience in an increasingly risky global market. In short, they inject a new level of intelligence into our organisations. Pairing this with our unique human capabilities of relationship management and creativity, and we unlock huge potential for our FSI companies.
Safe as houses, and more democratic
Through Microsoft’s security solutions (in which we have invested more than $1 billion year-on-year), we are working with FSI organisations to improve their security standards globally. Solutions such as the Customer Lockbox for Microsoft Azure, for example, assists customers with controlling and auditing support engineers’ access to compute workloads on Azure that may contain data while resolving the support issue.
These solutions have a proven success record, evidenced by our work with Interswitch, a payments and fintech innovator in Africa. Through partnering with large banks and corporates in Nigeria, Interswitch has been able to build a bank-guarantee service on Azure that extends the reach of banking systems to non-traditional players, corporate suppliers and borrowers – allowing them to manage their supply chain financing under objective terms and transparency.
Within the next decade, Africa’s objective is to ensure that the next 100 million Africans are financially included. AI has the potential to achieve this. As AI adoption increases, we’re constantly thinking about how we can help institutions make the transition to modern innovations, while still taking advantage of legacy investments.
The Nigeria Governors’ Forum (NGF) has launched a digital platform to attract local and international investors to Nigeria’s sub-national infrastructure projects and close the country’s estimated $100 billion annual financing gap.
Unveiled in Abuja, Investopedia will serve as a transparent “one-stop shop” for investment opportunities across Nigeria’s 36 states, said the forum, offering detailed project information and clear entry points for prospective investors.
NGF chairman and Kwara State Governor, Abdulrahman Abdulrazaq, described the initiative as a “strategic tool to unlock Nigeria’s full potential by mobilising global and African capital for critical infrastructure”.
He stressed that the platform should be seen as more than an investment catalogue, but a gateway that combines opportunities with guidance and institutional oversight.
Investopedia is backed by partnerships with the African Export-Import Bank (Afreximbank), the United Nations Development Programme (UNDP), and the Ministry of Finance Incorporated (MOFI).
NGF director-general, Abdulateef Shittu, hailed the launch as a “new dawn” for sub-national investment readiness, noting that Nigeria attracted only $1.87 billion in foreign direct investment in 2023, well below Africa’s average.
By curating a pipeline of bankable projects, he said the platform would boost investor confidence and expand Nigeria’s global visibility.
Shittu added that beyond financing, the platform would foster technical partnerships, capacity-building, and risk mitigation, laying the groundwork for sustainable economic growth.
“This is about more than funding, it is about actionable, bankable projects that will drive jobs, inclusive growth, and long-term prosperity,” he said.
IHS Nigeria has partnered with the Osun State Government on Osun Teacher-Shift 2025, a programme aimed at transforming technical and vocational school teachers into digital-ready educators capable of driving innovation in classrooms.
The IHS Nigeria sponsored initiative, implemented by Focus Teens Foundation in collaboration with the Osun State Board of Technical and Vocational Education, targets about 200 teachers across the State’s nine technical colleges. The training will run in batches over a two-day period, with participants expected to acquire modern skills, and innovative teaching techniques.
Speaking at the opening ceremony which held in Osogbo yesterday, Titilope Oguntuga, Director of Sustainability at IHS Nigeria, explained that the project was developed to prepare teachers for the opportunities and challenges of a fast-evolving world.
She said, “Today is not just the launch of a programme — it is the beginning of a movement. This is more than training, it is a mindset shift. It is about rethinking how we prepare teachers, students, and our communities for the opportunities and challenges of a fast-evolving world.”
Oguntuga emphasised that teachers remain at the centre of national development but face increasing demands to inspire creativity, nurture innovation, and equip young people with practical and technology-driven skills.
She noted that the initiative also reflects IHS Nigeria’s four sustainability pillars — ethics and governance, environment and climate change, people and communities, and education and economic growth.
The IHS official said, “education remains the strongest catalyst for national development. But we cannot achieve this without empowering the people who will empower the next generation. With this programme, teachers and beneficiaries from the nine technical colleges will begin to think more innovatively and incorporate new systems that support STEM for the advancement of our nation.”
Oguntuga added that each school would be given routers with one year subscription.
Adedapo Ademola-Adesina, Special Adviser to the Governor on Technical and Vocational Education, noted that the State Government believes in private sector collaboration to achieve its goals for technical and vocational education, leading to the partnership with IHS Nigeria.
“We must begin by changing the mindset of our teachers. They are the ones who shape future leaders. That is why we tagged the program “Osun Teacher-Shift 2025” — shifting from the old ways to new digital teaching”, he said.
Also speaking, Sunday Eluwole, the Osun State Commissioner for Education, acknowledged that the training was both timely and necessary, saying; “this is the 21st century, and Nigeria cannot be left behind. Our schools, teachers, and classrooms must be digitalised. Teachers must first be trained in digital methods before they can pass the knowledge on to students.”
Eluwole added that Osun State, which has the highest number of technical colleges in the Country, is committed to making its schools models of digital and vocational learning.
Earlier, Muritala Jimoh, Permanent Secretary, Ministry of Education, said that Osun State teachers are ready to shift. Jimoh noted that Governor Ademola Adeleke is prioritising teachers’ welfare in the state, hence their readiness to embrace the shift.
He called on teachers to reciprocate government’s efforts by making their minds flexible to change.
Nigeria Civil Aviation Authority (NCAA) has directed all airlines operating in the country to ensure that passengers completely switch off their mobile phones during aircraft take-off and landing.
Michael Achimugu, director of Public Affairs and Consumer Protection, NCCA, disclosed the directive in a post on X on Tuesday.
He said the measure was part of a harmonisation of existing rules on the use of electronic devices onboard.
“Henceforth, the regulation per phones and other electronic devices in Nigeria has been unified: ALL PHONES MUST BE SWITCHED OFF DURING THE CRITICAL ASPECTS OF TAKE-OFF AND LANDING,” Achimugu wrote.
“All airlines must amend their security programmes to reflect this if different in their current programmes. No more airplane mode until regulations are reviewed to reflect evolving technological situations.”
The directive means that all airlines will have to adjust their operational manuals and cabin crew instructions to enforce the policy.
Reactions to the announcement have been mixed on social media, with some Nigerians questioning the relevance of the rule in light of advances in aircraft technology and onboard connectivity.
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