The third TechConnect (TechConnect 3.0) event, which was organized by Interswitch, featured a wealth of information from financial institutions, industry leaders, and fintech specialists analyzing the potential, difficulties, and new trends in Nigeria’s burgeoning fintech market. The subject of the event, “Adapting, Scaling, and Advancing with Fintech,” highlights the need for resilience and creativity in the face of rising fraud in the industry.
Furthermore, TechConnect 3.0 featured a range of commercial prospects, emphasizing Interswitch’s finance offerings. Interswitch showcased its extensive range of products, including the Virtual Card Solution, which addresses issues with card profitability, the Tokenization Solution, which improves security, and Fintech Card Issuance, which enables fintech companies to issue cards by using a bank’s BIN.
Managing Director of Interswitch Purepay’s Payment Processing and Switching, Akeem Lawal, summed up the spirit of TechConnect 3.0 during his speech at the event as follows:
“TechConnect 3.0 demonstrates Interswitch’s steadfast dedication to spearheading the progress of the payment ecosystem. Especially in the banking industry, Interswitch has been at the forefront of innovation in Africa, applying state-of-the-art technology solutions to enable contactless payment transactions. Peer-to-peer lending, bots, biometrics, mobile banking, blockchain, artificial intelligence, and decentralized finance (DeFi) are just a few of the digital innovations that Interswitch is utilizing today to help solve scaling issues and enable people and communities to escape the grip of poverty.”
An incredible addition to the Fintech scale is the Card Fusion Platform, Tranzaxis for credit and prepaid card solutions. What good is a thorough investigation if it doesn’t delve far into the history? TechConnect 3.0 studied the history of card issuing in Nigeria, including five main locations.
Examining the launch of the first ATM cards in the late 1980s and the subsequent rise in mobile banking in the 2010s, the story highlighted the undeniable influence that electronic banking services have had on the financial industry. Notably, TechConnect 3.0 brought attention to the COVID-19 pandemic’s acceleration of contactless payments as well as the expanding collaborations between banks and fintechs to issue cards.
Future of Cards: Expecting Developments
In addition to concentrating on the past and present, the program provided an outlook on card technology going forward. imagining banks that operate exclusively online, a rise in the use of contactless payments, improved security, and possible cryptocurrency integration. An overview of Nigeria’s fraud landscape was provided by the Nigeria Fraud Analytics TechConnect 3.0 Key Insights. In particular, the Fraud Count and Loss Values increased by 162% and 581%, respectively, between 2018 and 2022. The number of reported fraud cases decreased slightly in 2022, but actual losses rose by 12%. The worrying N35 billion attempted fraud in 2022 was made public by Interswitch, highlighting the vital need of teamwork in the fight against fraud.
Presenting the ISaaS Platform
The introduction of Interswitch’s iSaaS (Interswitch Security-as-a-Service) platform was one of the event’s highlights. Using Adaptive Behavioral Analytics, Automated Deep Behavioral Networks, and Machine Learning, ISaaS was developed as an enterprise-grade solution. With the help of this extensive platform, fraud and anti-money laundering analysts will be able to access real-time customer data, strengthening their defenses against a variety of fraud schemes, such as card fraud, application fraud, payment fraud, and more. The ISaaS platform serves as an additional example of Interswitch’s goal of offering comprehensive solutions to meet the changing demands of fintech companies. Particularized Detection Skills Impressive detection capabilities are claimed by ISaaS, ranging from detecting compromised credentials to keeping an eye on unusual debit patterns. One of the platform’s key strengths was its ability to function without reliance on a bank’s Card Management System (CMS), guaranteeing functionality even in the event of a CMS breach. Additionally, ISaaS proves its ability to identify card-not-present transactions for the first time, card-stolen credentials, and complex fraud scenarios involving high-risk merchants and betting. Practices and Strategies for Preventing Fraud The program emphasized the need for strong fraud prevention techniques and pushed financial institutions to implement risk-based frameworks. There was discussion of a number of preventive measures, such as using multi-factor authentication, continuous monitoring, and thorough vulnerability testing. The presenters emphasized the importance of ongoing fraud awareness and urged participants to remain watchful for new and emerging fraud techniques.
Microfinance Banks and Financial Inclusion
In a broader context, Interswitch highlighted the inevitable role of microfinance banks in driving economic growth and financial inclusion. The discussion noted how digitalization has enhanced access to lending services, making processes more convenient and efficient. The zeal to design cutting-edge solutions for microfinance banks was brought to the forefront, emphasizing the role of technology in streamlining loan processes. Collaboration and Partnerships Throughout the programme, the importance of collaboration and partnerships was a recurring theme. Interswitch emphasized that partnerships are fundamental to successful digital transformation, particularly in the face of dynamic technological changes. The call for collaboration extended beyond individual financial institutions to encompass the broader fintech ecosystem.
TechConnect 3.0, was a strategic forum for addressing the challenges brought about by the escalating fraud landscape in Nigeria. The introduction of the ISaaS platform marked Interswitch’s readiness to leverage advanced technologies for robust fraud prevention. While the emphasis on collaboration, partnerships, and a risk-based approach highlighted the collective responsibility in fortifying Nigeria’s financial sector against evolving threats, the event succeeded in fostering dialogue, sharing insights, and charting a course for a resilient and innovative fintech future in Nigeria. Future of Cards: Anticipating Innovations The programme didn’t just focus on the present and past, but also offered a glimpse into the future of card technology. Envisioning digital-only banks, increased adoption of contactless payments, enhanced security measures, and potential cryptocurrency integration.
Important Takeaways from Nigerian Fraud Analytics
TechConnect 3.0 provided an overview of the fraud landscape in Nigeria. In particular, the Fraud Count and Loss Values increased by 162% and 581%, respectively, between 2018 and 2022. The number of reported fraud cases decreased slightly in 2022, but actual losses rose by 12%. The worrying N35 billion attempted fraud in 2022 was made public by Interswitch, highlighting the vital need of teamwork in the fight against fraud.
Presenting the ISaaS Platform
The introduction of Interswitch’s iSaaS (Interswitch Security-as-a-Service) platform was one of the event’s highlights. Using Adaptive Behavioral Analytics, Automated Deep Behavioral Networks, and Machine Learning, ISaaS was developed as an enterprise-grade solution. By giving fraud and anti-money laundering analysts access to real-time customer data, this extensive platform seeks to provide a strong defense against a variety of fraud schemes, such as payment, application, card, and more. The ISaaS platform serves as an additional example of Interswitch’s goal of offering comprehensive solutions to meet the changing demands of fintech companies.
Impressive detection capabilities are claimed by ISaaS, ranging from detecting compromised credentials to keeping an eye on unusual debit patterns. One of the platform’s key strengths was its ability to function without reliance on a bank’s Card Management System (CMS), guaranteeing functionality even in the event of a CMS breach. Additionally, ISaaS proves its ability to identify card-not-present transactions for the first time, card-stolen credentials, and complex fraud scenarios involving high-risk merchants and betting. Practices and Strategies for Preventing Fraud The programme pointed to the importance of robust fraud prevention strategies, urging financial institutions to adopt frameworks based on risk. There was discussion of a number of preventive measures, such as using multi-factor authentication, continuous monitoring, and thorough vulnerability testing. The presenters emphasized the importance of ongoing fraud awareness and urged participants to remain watchful for new and emerging fraud techniques. Microlending Institutions and Economic Empowerment Interswitch underscored, in a more general sense, the indispensable function that microfinance banks play in propelling economic expansion and financial inclusivity. The conversation covered how digitalization has improved lending service accessibility and made procedures more practical and effective. The urgency of developing innovative solutions for microfinance banks was highlighted, highlighting how technology can expedite the loan application process. Cooperation and Joint Ventures The significance of partnerships and teamwork was a recurrent theme in the program. Partnerships are essential for a successful digital transformation, according to Interswitch. especially in light of the rapid advancements in technology. The request for cooperation covered the entire fintech ecosystem, not just specific financial institutions.
TechConnect 3.0 served as a tactical platform for tackling the issues raised by Nigeria’s growing fraud problem. Interswitch demonstrated its readiness to use cutting-edge technologies for effective fraud prevention with the launch of the ISaaS platform. The focus on cooperation, joint ventures, and a risk-based strategy underscored the need for everyone to do their part to protect Nigeria’s financial industry from changing risks, but the event also succeeded in promoting discussion, exchanging ideas, and laying out a roadmap for a resilient and inventive fintech future in Nigeria.
