AI's advancement tailored to user preferences and shifting priorities: The progression of AI in Nigerian banking processes
AI Transforms Nigerian Banks, but Challenges Remain
In Nigeria, the banking sector is embracing artificial intelligence (AI) to streamline operations, improve customer service, and enhance fraud detection. Major banks such as United Bank for Africa (UBA), Access Bank, Wema Bank, and Zenith Bank are leading the charge, integrating AI tools primarily in the form of customer-facing virtual assistants and chatbots.
One example is UBA's AI-powered chatbot, Leo, and Zenith Bank's Ziva, both available on popular platforms like WhatsApp. However, a 2024 KPMG survey revealed that 73% of retail banking customers rarely interact with these tools, highlighting challenges in customer acceptance and long-term value.
Bank employees are also leveraging AI internally to automate and expedite daily tasks. Tier-1 bank employees, for instance, use AI assistants like Grok to compile customer feedback, reducing the time spent from over two hours to less than 10 minutes.
Despite the growing adoption, some leadership remains cautious about fully embracing AI internally. There is, however, a shift in mindset from just integrating interesting AI tools towards leveraging AI to redefine banking’s future capabilities.
Across Africa, AI adoption is advancing but is still in a maturing phase. Fidelity Bank Ghana, for example, emphasizes AI’s potential to revolutionize banking with enhanced fraud detection, risk management, automation of repetitive tasks, and data-driven insights for strategic decision-making. In Kenya, while 50% of lenders use AI for credit risk and fraud management, many banks lack maturity and internal capacity.
Challenges remain in the adoption of AI, including customer engagement, regulatory uncertainty, cost concerns, infrastructure gaps, AI explainability, and governance. However, the sector holds significant promise for efficiency, risk management, and financial inclusion as these challenges are addressed.
The future of AI in African banking depends on overcoming these barriers, ensuring regulatory clarity, improving digital infrastructure, and establishing governance frameworks for responsible AI use. Banks are moving from experimental AI use to more strategic integration aimed at reshaping banking fundamentals.
As the adoption of AI in Nigerian banks continues to grow, the sector is poised to reap the benefits of increased efficiency, improved risk management, and enhanced customer service. However, addressing the challenges of customer acceptance, regulation, infrastructure, and AI explainability will be crucial to unlocking the full potential of AI in the banking industry.
AI in Nigerian Banks: A Closer Look
In the customer data maintenance service unit of a Tier-1 bank, an employee uses AI to process complex legal documents quickly. Meanwhile, at UBA, the internal "Advanced Analytics" team was renamed "Artificial Intelligence & Advanced Analytics" in Q1 of 2025, signalling a more serious investment in the space.
Some bank staff remain sceptical about AI's impact on marketing tasks, but others, like a staff member at UBA, have been aggressively driving AI awareness across the bank to drive operational efficiency.
The head of the Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, encouraged banks to adopt AI tools to strengthen their fraud detection approaches in December 2024. Wema Bank staff, for instance, receive emails and communications from bank leadership focused on integrating AI tools into their daily workflow.
AI is also being used by bank staff to respond to internal emails, saving time on communication. Some banks, like Nigerian AI startup Lumnic, are building enterprise tools for supporting back-office operations, focusing on local data.
Staff across departments in Tier 1 and Tier 2 banks are experimenting with AI, whether through custom-built tools or popular platforms like ChatGPT. However, Access Bank employees claim they have not received formal communication on how to incorporate AI tools into their work properly.
As banks continue to experiment with AI, the sector is likely to see more innovative applications of the technology in the near future. The upcoming Pan African AI Summit reflects growing commitment to making Africa a leader, not just a consumer, in AI.
In summary, Nigerian banks are experimenting with AI, whether through custom-built tools or popular platforms like ChatGPT. However, challenges remain in the adoption of AI, including customer engagement, regulatory uncertainty, cost concerns, infrastructure gaps, AI explainability, and governance. Addressing these challenges will be crucial to unlocking the full potential of AI in the banking industry.
- The use of AI in Nigerian banks extends beyond customer-facing virtual assistants and chatbots, with Tier-1 bank employees also applying it to process complex legal documents quickly.
- A decisive shift is occurring in the banking industry, with banks moving from experimental AI use to more strategic integration, aimed at reshaping banking fundamentals.
- The head of the Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, has incentivized banks to adopt AI tools to enhance their fraud detection approaches.
- Staff across departments in Tier 1 and Tier 2 banks are experimenting with AI, utilizing both custom-built tools and popular platforms like ChatGPT for improved efficiency.
- Innovative applications of AI in the banking industry are expected to flourish in the near future, as evidenced by the growing commitment reflected in events like the Pan African AI Summit.
