As artificial intelligence [AI] becomes central to banking and financial services institutions [BFSIs] across Africa, building consumer trust in these systems is crucial for long-term success. To achieve this, institutions must balance innovation with ethical AI practices.
Josefin Rosén, a Trustworthy AI Specialist at SAS, notes that 95% of businesses lack full AI governance frameworks, and only 5% can effectively assess bias and privacy risks. She stresses that trustworthy AI depends on strong governance, incorporating oversight, compliance, and ethics throughout the AI lifecycle.
African BFSIs face unique challenges, including a significant rise in digital banking fraud. The South African Banking Risk Information Centre [SABRIC] reported a 45% increase in digital banking fraud and a 47% rise in related losses in 2023. According to Itumeleng Nomlomo, a Senior Business Solutions Manager at SAS South Africa, outdated systems must be modernised. Integrating machine learning with decision-making tools can reduce fraud while improving the customer experience.
SAS research shows that 74% of banking leaders worry about data privacy, and 71% cite security concerns when adopting AI. Strong governance frameworks not only build trust but also ensure compliance and risk management.
Rosén explains that AI will shape the future of financial services through fraud detection and personalised customer experiences. Nomlomo adds that predictive analytics can help BFSIs better understand customer needs and respond to new types of financial crime.
Both experts agree that transparency in AI systems is vital. Rosén says AI models must be explainable, with decisions that are auditable to ensure fairness and inclusivity. SAS promotes responsible innovation with principles such as human-centricity, accountability, privacy, inclusivity, and robustness.
Continuous monitoring of AI systems is another key element. Rosén warns that 70% of companies do not monitor their AI systems regularly, which can lead to undetected bias, privacy breaches, and security issues.
Nomlomo concludes that AI can transform onboarding, fraud prevention, and customer engagement—if supported by strong data governance and transparency. He also highlights the need for AI literacy among leaders to guide responsible implementation.
Ultimately, African BFSIs must invest in AI frameworks that reflect local regulations and cultural values. As Rosén puts it, success lies not just in using advanced technologies, but in using them responsibly and transparently.
