Recommendations on Integration of AI at Ecobank

The banking sector in Ghana plays a significant role in the country’s financial sector and the economy as a whole. Some of the major issues identified that affect the country include corruption and fraud. Corruption usually involves embezzlement of funds by officials in public or private entities while fraud involves acts or omissions designed to deceive others resulting in a loss. In most cases, banks are the center of various fraudulent operations that are carried out given that individuals usually use them for making financial transactions. In this regard, a recommendation is made to the head of IT at Ecobank on how integrating artificial intelligence (AI) into the bank's system can help deal with fraudulent operations and corruptive practices.

Problem

As the largest bank in Ghana, Ecobank is usually used for facilitating most of the transactions. Most individuals and even companies usually rely on the bank for conducting business and even making transactions with partners. Some of the proceeds that are usually obtained through fraudulent practices and even corruption are usually transacted through the bank. However, due to the nature in which operations are conducted and the volume of the transactions conducted every day, it is almost impossible to identify these operations. Although the bank is not liable in almost all cases especially in fraudulent operations, the incidences usually have a significant impact on the reputation of the bank. Therefore, there is a need to increase security as well as prevent fraud that may occur through the bank.

Solution

AI-based solutions play a significant role in the identification and prevention of fraudulent operations. Integrating AI with the bank’s fraud prevention systems, will be essential in rejecting fraudulent payments and stopping any fraudulent activity that can be essential in limiting chargebacks and reducing the risk of fraudulent operations. Through balancing supervised and unsupervised learning, the ability to even detect new fraudulent operations has also been advanced. Also, by integrating AI into the bank’s system, it will aid in anti-corruption efforts. AI provides the capacity for analyzing large datasets that can help uncover activities associated with money laundering that usually facilitate corruption.

One of the companies that offer reliable AI software that is essential in detecting fraudulent operations is Feedzai. The company usually provides machine learning technology that helps manage financial risk in payment processors, merchants, and retail banks. In 2016, Citi Bank announced a strategic partnership with the bank to integrate its software into the bank’s fraud detection process. Therefore, Ecobank could also consider this option and consider integrating Feedzai software into its systems to help prevent fraud.

Requirements for the Implementation of the Solution

To effectively implement the solution that has been proposed, the management at Ecobank will have to allocate funds to the initiative. Preferably, some of the funds that are allocated to risk management can be used for funding this initiative. The company can partner will a reliable vendor such as Feedzai. However, one major constraint is that the company may have to incur high costs that can reduce earnings due to the money allocated to the initiative. The firm can choose to partner with a specialized IT firm or even an expert in Ghana that will help in the management of the system. This implies that the company will also be in a position to exercise control of the new systems by having individuals that can always be called up to provide feedback on the progress made and success achieved through the new initiative.

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