FITC/NIBSS host Africa’s largest financial services sector cyber-security conference

With the increasing drive of the fourth industrial revolution towards ubiquitous connectivity and digitalization, the attendant new connections and technology support for socio-economic progress, cyber risks and attacks stemming from these innovations have become highly on the increase. 

These Cyber-threats have become a growing concern in emerging financial markets and are weakening consumer trust and confidence in digital financial services. Industry players and governments in emerging markets are becoming aware of the need to develop regulatory frameworks, industry guidance and supervisory processes. However, cybersecurity requires expertise and resources that are often scarce in these emerging markets.

This is further underscored by the recent World Economic Forum’s Global Risk report where cyber risk is recognized as one of the top commercial risks, alongside the economy, the environment and geopolitics. 

In a clear demonstration of leadership in knowledge economy and irrefutable manifestation of the proactive transformation and adoption of the disruptive wave of innovative technology, FITC  a world class innovation led, technology driven and knowledge-based organization in conjunction with the Nigeria Inter-Bank settlement System Plc. (NIBSS) – the foremost organization empowering and enabling the Nigerian payments system, hosted  one of the largest virtual Cybersecurity conference in Africa; tagged ‘Think_Nnovation 2020 Cybersecurity Conference’ on Thursday, 10th September 2020 with the theme “Combating Cybercrime: Strategies for Strengthening Emerging Markets”.

The conference which aimed to provide the much needed imperatives on how leaders can adapt and adopt the right strategies, build effective partnerships to ensure optimal cybersecurity and digital trust, also explored cybersecurity trends and challenges within the financial sectors of developing countries relative to the rest of the world 

Coming on the heels of the enduring disruptive technology which has impacted business operations in this period of the COVID-19 pandemic that has greatly altered the way things are done, with a change in the definition of normal, the conference was driven by a collective commitment to divergent thinking and global sustainable development to proffer and co-create solutions to cybercrime menace, with focus on Africa and emerging markets.

The virtual event which boasts of many firsts, with 25 Speakers and over 1,000 attendees from 6 continents of the world in an augmented virtual reality conference session experience with curated session tours; was organized into four different power-packed plenary sessions with seasoned panellists.

The conference had Aishah Ahmad (Deputy Governor – Financial System Stability, CBN) as the special guest, Mr. Phang Hong Lim (Senior Director, Supervisory Guidance, Toronto Centre) as the keynote speaker and Chizor Malize (MD/CEO FITC) as the host, with other top flight global thought leaders on the panel. 

In her opening remark, Aishah Ahmad harped on the systemic risk concerns of cyber related threats which has consistently featured on the high impact, high likelihood quadrant of the global risk landscape with huge impact on the financial sector, given the critical role of banks in financial intermediation in a very increasingly highly connected financial system, with the potential of undermining stakeholders confidence in the overall financial system stability. She also stated that the strategies and consequent policies to tackle cybercrime is a top priority for the Central Bank of Nigeria. 

Aishah Ahmad, Deputy Governor // Financial System Stability, Central Bank of Nigeria

Speaking further on the findings of the World Economic Forum global risk report, she stated that, “But for me, I think what was most insightful is that it identified cyberattack as the second most concerned risk for doing business over the next ten years. It was important to situate it against this background, because it was against this context of rapid technology innovation and heightened cybersecurity risks that the Corona virus pandemic emerged”. 

While highlighting the proactive steps taken by the CBN in the issuance of a risk based cybersecurity framework for Deposit Money Banks, Payment Service Banks and Payment Service Providers in 2018, Aishah Ahmad reiterated the Central Bank’s commitment to strengthen the regulatory supervisory framework to ensure optimum resilience in the financial system.

The opening address by Chizor Malize laid a solid background on the imperative of digital transformation through the connective power of innovative technology with the resultant unintended consequences of heightened vulnerabilities. 

Chizor Malize (MD/CEO FITC)

She highlighted some of the increasing risks and threats facing organizations as a result of increased digitization. According to her, “these risks emanate from social engineering, ransomeware, security risks from IoT which necessitates integration and interoperability of devices. It also include cloud misconfiguration and in some cases general data protection regulations and compliance that further exposes organizations with global operations”.

According to her, the COVID-19 pandemic has exacerbated the level of cyber attacks in 2020.

She also noted that “Businesses, Corporate organizations, States and Nations are now more exposed to cyber threats and attacks than ever before as a result of rising wave of cyber culture which is further exacerbated by the Covid-19 pandemic”. Continuing she emphasised that “the financial services sector seem a perfect bed for hackers. The financial institutions contain information that spans everything a cybercriminal wants all wrapped in one place; from bank accounts, financial details and identity data. This is the imperative upon which the Think_Nnovation Conference 2020 focused on Cyber security is birth”, she echoed.

In a very insightful and thought provoking keynote speech, Mr. Phang Hong Lim highlighted the five proven roadmap to more cyber resilient for the financial sector as follows:

• Regulatory and supervisory approaches – Incorporate cyber risk into the enterprise-wide risk management framework and governance requirements; and the imperatives for banks to develop an effective control and response framework for cyber risk including the implementation of general sound risk management practices to provide a baseline cyber hygiene.
• Information sharing – Provide actionable cyber intelligence through multi-lateral information sharing on cyber threats.
• Cooperation and coordination at national and international levels –  Enhancement of greater cross border cooperation consistency in regulatory supervisory approaches and the need to increase the level of co-ordination and cooperation amongst regulators across jurisdictions.
• Industry collaboration and support – Implementation of industry wide cyber initiatives to enhance cyber defence capabilities. 
• Education and skill development – Development of capacity to take up challenges associated with the new digital normal in response to new threats that promote growth.

While affirming that cybersecurity has long passed the point where it was perceived as purely a technical issue, he stressed that it has become a business continuity and business strategy issue at the top of the agenda of the Board; with the cost of usability that has traditionally been the domain of cyber security technical specialist, now part of the business and organizational leadership consideration. 

On the strategies and practical steps financial regulators can take to cultivate and promote cyber resilience, Mr. Phang Hong Lim stated that regulators in some jurisdiction favours a ‘principles’ based approach – where cyber issues can be handled with existing regulations relating to technology and operational risks, while others apply a more ‘prescriptive’ framework – where specific regulatory structure is needed to deal with the unique nature of cyber risk.

Another approach taken by regulators in some jurisdiction is to certify Cybersecurity professionals used by banks for their cybersecurity activities. 

The four plenary sessions which had an array of top industry leaders like Ademola Adebise (MD/CEO, Wema Bank), Niyi Ajao (Deputy Managing Director, NIBSS), Adedoyin Odunfa (CEO, Digital Jewels), Tunde Coker (CEO, Rack Centre), Adewale Obadare (COO, Digital Encode), Chike Ive Meme (CEO, Environ), Nkemdilim U. Begho (CEO, Future Software Resources), among others on the panel, focused on the following key domain areas:

• Cybersecurity and Financial Services: Imperatives, Risks and Control
• Cybersecurity and Digital Transformation: Challenges for Emerging Markets
• Cybersecurity IT Infrastructure: Tools and Strategies for Combating Crime
• Building Cybersecurity for Financial Services Growth

Based on the experiences of cybersecurity initiatives around the world, the global thought leaders offered insights and suggestions for emerging communities, financial services providers, regulators and industry enablers on how to strengthen cyber-resilience and protect customers.

The FITC Think_Nnovation 2020 Cybersecurity Conference is hinged on collection and documentation of new knowledge and best practices in the area of Cyber security through impact-driven conversations and actions.

About FITC

FITC is a world-class innovation-led knowledge and professional services firm providing cutting edge Learning, Consulting, and Research Services to clients within and outside Nigeria. FITC was established in 1981 as a non-profit organization limited by guarantee to provide capacity building and serve as a knowledge hub for the Nigerian Financial Services Sector. The organization is owned by the Bankers Committee, i.e. CBN, NDIC, and all deposit money banks in Nigeria.

For over three decades FITC has been at the forefront of innovative knowledge offerings designed for an array of C-suite executives, directors of banks and other financial institutions. FITC is a recipient of the International Federation of Training & Development Organizations (IFTDO) ‘Change Agent in Learning and Development in Africa’ Award.

About NIBSS

Nigeria Inter-Bank Settlement System Plc (NIBSS) was incorporated in 1993 and is owned by all licensed banks including the Central Bank of Nigeria (CBN). NIBSS has put in place modern world-class infrastructures for handling inter-bank payments to remove potential bottlenecks associated with inter-bank funds transfer and settlement. The company also operates the Nigeria Automated Clearing System (NACS) which facilitates the electronic clearing of cheques and other paper-based instruments, electronic funds transfer, Automated Direct Credits and Automated Direct Debits. NIBSS also operates the Nigeria Central Switch which interconnects all banks and other licensed payments service providers to provide interoperable services, including the Digital Bank Verification Number scheme. The company continues to lead in providing innovative services and remains at the forefront of championing fin-tech future in Africa.

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