Wema Bank, a well-known bank in Nigeria, has recently formed a strategic relationship with Daon, a well-known worldwide company focusing on digital identity and trust solutions.
This partnership aims to make Wema Bank’s digital platform safer by adding cutting-edge face recognition technology. The move was made in response to several events and is meant to stop scams on the bank’s platform.
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Wema Bank’s Integration of Daon’s Applications
Through the Daon IdentityX® platform, Wema Bank said in a thorough statement that it has added Daon’s cutting-edge apps, namely Daon xProof and (xAuth/xFace), to its current banking app. These apps are meant to improve the processes of digital identity verification and authentication, making them stronger and safer for users.
This technology was implemented by Daon and its regional partner, Ouranos Technologies. We aim to give Wema Bank clients a secure and easy banking experience. Its technology lets customers execute ordinary banking transactions across several interaction channels, including selfies. This simplifies client banking and improves security using advanced liveness detection and other techniques to avoid presentation assaults.
Daon’s innovative idea of Identity Continuity makes it possible for these solutions to work together. It lets Wema Bank onboard new customers and authenticates existing ones across multiple platforms using a single platform.
Wema Bank’s Encounter with Fraudulent Activities
Wema Bank’s recent heist highlights the need for enhanced security. A recent study in April 2024 revealed Wema Bank’s significant financial losses of ₦685 million (about $594,943) in 2023. Digital and collection/payment channel fraud and forgeries, including third-party platform transactions, caused these losses. Daon’s face recognition technology is Wema Bank’s strategic move to prevent security breaches and protect clients.
Wema Bank swiftly strengthened its fraud defences in response to these security threats. The bank increased its digital compliance department fraud monitoring staff to better detect and respond to fraud. This expansion is part of a drive to protect consumer transactions and the bank’s digital services.
Wema Bank also developed a thorough anti-fraud programme to educate consumers about fraud dangers and how to prevent them. The ad educates clients on securing their accounts and personal information against unauthorised access and fraud.
Wema Bank took strict actions against various fintech partners to safeguard its payment environment. In the same month as the losses, the bank dismissed up to seven fintech partners from its payment gateway platform. The bank’s zero-tolerance platform compromise policy was shown by suspending these partners for fraud.
These initiatives and Daon’s face recognition technology demonstrate Wema Bank’s dedication to fighting fraud and improving digital banking security. To ensure client safety, Wema Bank uses technical innovation, staff growth, customer education, and robust compliance enforcement.
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Innovating in EMEA and APAC with Daon
Clive Bourke, Daon’s EMEA and APAC president, commented on the cooperation with Wema Bank. He said that Daon’s complete identity verification and authentication solutions integrated into the Wema Bank app will transform the client experience. Bourke said clients will have a more reliable and optimised user experience without compromising data security.
Bourke stressed that identity fraud in the banking business causes significant financial losses, making this technical improvement crucial. He said robust identity verification and authenticity are essential to fighting financial fraud.
Wema Bank’s Chief Digital Officer, Olusegun Adeniyi, echoed Bourke’s thoughts and reaffirmed the bank’s objective of frictionless access to various financial services. Adeniyi stressed that the bank’s switch to Daon’s technology is strategic to improve client experience and security. He said the move responded to fraud and a proactive effort to safeguard the bank’s reputation for secure and fast digital banking.
Daon and Wema Bank leadership share a goal of using cutting-edge technology to protect consumer data and transactions, creating trust and confidence in digital banking.