Cyber threats on financial stability and financial inclusion demand a coordinated response

Cyber threats are evolving, becoming more frequent and more severe. Jean-Louis Perrier, Director at Africa Cybersecurity Resource Center, explains the repercussions for financial inclusion, policymakers and regulators.

Can you explain the connection between cybersecurity and financial inclusion?

Cyber threats work against financial inclusion. By eroding consumer trust in financial institutions, they risk driving people away from financial services and the digital economy, rather than letting them benefit from it. Poor populations, the very people who we are trying to financially include, are most vulnerable to cyber threats.

Are cybersecurity threats to the financial sector more severe or more consequential in Africa?

Africa’s financial sector is exposed to the same threats as everywhere else, but with some particularities. Firstly, human resources and financial resources are relatively limited. Secondly, governmental support is often weak, and there is a lack of national and regional cybersecurity bodies. Also, unlike what we see in Europe or the United States, financial sector players tend not to work together to protect themselves.

Where does your organization come in?

The Africa Cyber Security Resource Center for Financial Inclusion is a not-for-profit consortium of public and private partners established in Luxembourg and Africa, which was created to build the cyber resilience of the entire African financial sector, representing 4-5,000 institutions across 54 countries.

We work with financial service providers, fintechs, telcos, insurances, central banks, regulators and supervisors, sharing information on emerging cybersecurity threats, and building the sector’s capacity to protect itself.

How are you working with the AFI network?

Cybersecurity is obviously not the primary business or core competence of a central bank or financial regulator but given the implications of cyber threats on financial stability and financial inclusion, they know they can’t afford to ignore it.

We support AFI members to develop and implement effective responses to the growing threats. A sign of how seriously central banks and regulators are taking the issue is that cybersecurity now forms part of the 2024/2025 workplan for AFI’s African Financial Policy Initiative.

Ultimately, international threats require international responses. We absolutely need the mobilization of all regulators and supervisors, and we greatly appreciate the support AFI is providing to ensure that African and global financial institutions and countries work together to face these threats effectively.

You can learn more about the work of the Africa Cybersecurity Resource Center on their website.