African financial institutions are at the forefront of digital innovation. Mobile money, instant payments, digital lending and open banking APIs are transforming access to financial services. At the same time, these innovations expose institutions to new forms of fraud, cyberattacks and operational risk.
Managing digital risk requires a portfolio of controls. These include robust identity and access management, transaction monitoring, behavioural analytics, and strong incident response capabilities. It also requires close collaboration between product teams, IT security, risk, compliance and operations.
Fintechs and banks alike must design risk management into digital products from the start rather than bolting it on later. This includes clear customer communication, simple security steps such as multi-factor authentication, and careful management of third-party providers.
Ultimately, customers will trust institutions that demonstrate both convenience and safety. Those that neglect digital risk may find that growth is quickly overshadowed by incidents, fines and reputational damage.