How Fintechs must prioritise cybersecurity to build trust – PalmPay

Mr Femi Hanson, Head of Marketing and Communications, PalmPay, has emphasised the urgent need for fintech companies to strengthen their cybersecurity defenses.

Hanson said this in an interview with our reporter on Monday in Lagos.

According to Hanson, fintech companies must prioritise user education and security through initiatives such as anti-fraud awareness campaigns and user-friendly financial services.

Hanson underscored the crucial role of trust in the fintech sector, noting that limited awareness of digital financial solutions, coupled with growing concerns about cyber threats and data privacy, often deterred potential users.

To address these challenges, Hanson recommended leveraging Artificial Intelligence (AI) and Machine Learning (ML) to detect and prevent fraudulent activities in real-time.

He emphasised the importance of financial literacy campaigns in educating users about digital banking and advanced security protocols, including AI-powered fraud detection, to protect user data.

Hanson also stressed the need for transparent communication in building trust and fostering confidence among users.

He noted that AI-powered facial recognition technology could be utilised to secure user verification processes, enhancing the user experience and adding an extra layer of protection against identity theft and unauthorised access.

Speaking on regulation, Hanson said that frequent changes in regulatory policies could stifle innovation.

“Fintech operators should proactively collaborate with regulators to align with evolving requirements and invest in infrastructure alternatives, such as USSD solutions,” he said.

Regarding infrastructure, Hanson noted that internet access hindered reliable service delivery.

He emphasised the need for fintech companies to invest in alternative infrastructure solutions to ensure seamless service delivery.

On the issue of trust, Hanson stressed that building trust through transparent communication was crucial for fostering confidence and driving adoption.

He cited an example of a PalmPay app feature called ‘Bank Monitor’, noting that the feature ensured transparency and reliability by addressing users’ concerns about transaction failures or delays.