‎UBA cuts fraud losses as AI reshapes tisk controls

‎
‎United Bank for Africa (UBA) says artificial intelligence is now central to how it detects and prevents fraud, as the lender’s own results show a sharp drop in losses tied to tighter, technology-driven controls.
‎
‎Confiance News gathered that UBA cut fraud losses by 45.35 percent to ₦288 million in the first half of 2025, even as profit after tax rose to ₦335 billion for the period, according to the bank’s H1 2025 financial statements. The bank attributed part of the improvement to internal control procedures designed to “safeguard the assets of the Bank and prevent and detect fraud and other irregularities.”
‎
‎The drop came even as the wider industry faced growing exposure to digital fraud. The Nigeria Inter-Bank Settlement System recorded ₦25.85 billion in digital payment fraud across the sector in 2025, down from ₦52.26 billion in 2024, as the Central Bank of Nigeria pushed banks toward real-time transaction monitoring and stricter customer verification.
‎
‎AI now central to fraud strategy, UBA executive says
‎
‎Speaking at the 64th quarterly general meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN), which UBA hosted in June, Ugo Nwaghodoh, the bank’s Executive Director for Finance and Risk, said AI is fundamentally changing how banks monitor transactions and manage risk.
‎
‎Nwaghodoh, representing UBA group managing director Oliver Alawuba, told the gathering that decisions in modern banking are now made in milliseconds, with algorithms able to approve, decline, flag, recommend or exclude transactions with minimal human input. He confirmed that AI is already transforming fraud detection, transaction monitoring, customer engagement and operational efficiency across financial institutions.
‎
‎He cautioned, however, that the same technology introduces new risks, including automated cyberattacks, algorithmic bias, deepfake-driven fraud and data governance failures. “The question is no longer whether AI will transform banking,” Nwaghodoh said.
‎
‎Recognition for AI-driven digital push
‎
‎UBA’s AI investments were also recognised internationally in June, when the bank won The Banker’s 2026 Technology Award for AI innovation in Africa, alongside the relaunch of its upgraded mobile banking platform, RedApp.
‎
‎Reacting to the award, Alawuba said the recognition reflected the bank’s broader digital strategy. “As Africa’s Global Bank, we remain committed to leveraging innovation and emerging technologies to simplify banking, deepen intra-African trade, and provide world-class banking experiences to our customers wherever they are,” he said, adding that the award would push the bank to keep advancing its digital financial services.
‎
‎Industry-wide shift
‎
‎UBA is not alone in leaning on AI for fraud control. An analysis of audited results found that UBA, Access Holdings and GTCO together lost ₦2.13 billion to fraud and forgery in 2025, even as regulators pushed banks to adopt AI-driven monitoring, device-binding checks and mandatory liveness verification for new accounts. Auditors have separately warned that while AI strengthens fraud detection, banks must also invest in governance frameworks to manage the new risks the technology introduces, including model drift during periods of economic or geopolitical volatility.
‎
‎For now, UBA’s own numbers suggest that its AI-backed control systems are paying off, even as the bank’s leadership insists the technology’s risks demand continuous oversight, not just adoption.