By 
Kenya’s banking sector is increasingly turning to artificial intelligence (AI) to tackle internal fraud and theft, underscoring the growing role of technology in strengthening financial security.
This shift towards AI is driven by the need for more advanced and efficient methods to protect financial institutions from the rising threat of internal fraud. The Central Bank of Kenya (CBK) highlighted in its annual technology report that banks are now employing AI to boost operational efficiency, predict customer behavior, and manage risks more effectively, including monitoring staff communications.
“Banks are utilizing AI solutions to monitor electronic communications within trading rooms to identify anomalies and irregularities,” CBK noted in a statement.
Major banks such as KCB Group and Absa Bank are leading this technological transformation, using AI to oversee employee communications and behaviors to spot potential fraud. This represents a shift from earlier AI applications, which were primarily focused on customer service and market predictions. Now, banks are harnessing advanced technologies to enhance both operational efficiency and risk management, aiming to protect their operations from both internal and external threats.
AI systems enable continuous real-time monitoring of transactions and internal activities. By analyzing patterns and detecting anomalies, these systems can immediately flag suspicious activities, allowing banks to act swiftly and prevent the escalation of fraudulent activities.
This move to integrate AI reflects a broader trend within Kenya’s financial industry, where the escalating attempts at fraud have made robust prevention mechanisms a priority. Banks are heavily investing in AI-driven solutions to safeguard their assets and maintain customer trust.
Comments