Remita: AI adoption critical to Nigeria's fintech growth

A recent report by Remita has shed light on the urgent need for Nigerian fintech companies to embrace Artificial Intelligence (AI) in order to keep pace with the rapidly evolving landscape of the financial sector. The report emphasizes the pivotal role AI plays in driving Nigeria's fintech growth, particularly in the context of the country's digital economy and the significant number of unbanked individuals. Deremi Atanda, the Managing Director of Remita, recently discussed the findings of the report on a CNBC Africa interview. The report highlights how AI has the potential to propel Nigeria's economy and the wider African continent forward, especially in the realm of payments. Atanda stressed that AI, though not a new concept, has evolved from weak AI to strong AI, with technologies like GPT-3 leading the way. The integration of AI in financial services has the capacity to streamline payment processes, enhance financial inclusion, and revolutionize banking practices both at the individual and corporate levels. One of the key points raised in the discussion was the transformative impact of AI on digital payments and financial inclusion. Atanda pointed out that AI's seamless integration into mobile devices can significantly increase digital financial literacy and enable easier access to financial services for all. Moreover, AI-powered solutions can provide personalized recommendations and support in multiple languages, thereby catering to diverse demographics and promoting financial inclusivity. The conversation also delved into the role of data in fueling AI-driven innovations in the financial sector. Atanda emphasized that data is the cornerstone of AI intelligence, and the ability to analyze and leverage data effectively is essential for successful AI implementation. By harnessing machine learning and anonymizing data, financial institutions can create novel transaction models, offer tailored credit solutions, and improve overall service efficiency. Despite the transformative potential of AI in fintech, Atanda acknowledged the ethical considerations and risks associated with its adoption. Privacy concerns, data security, and ethical use of AI were highlighted as critical areas that require attention. Atanda stressed the importance of ethical AI practices to ensure that AI serves the common good and is not misused for fraudulent activities. The interview concluded with a note on collaboration and knowledge-sharing within the industry to mitigate risks and maximize the benefits of AI adoption. Atanda expressed optimism about the future of AI in Nigeria's fintech landscape and underscored the need for continuous innovation and regulatory oversight to safeguard against potential risks. In essence, the report by Remita underscores the transformative potential of AI in driving financial inclusion, fostering economic growth, and shaping the future of Nigeria's fintech industry. As the country moves towards greater digitalization, embracing AI technologies will be crucial in unlocking new opportunities and ensuring a more inclusive and efficient financial ecosystem.