GUINEA: Cybercrime Threatens Finance Industry, Says Survey

For the second year running, executives of financial institutions in Guinea have identified cybersecurity concerns as the top risk factor in the financial services sector. According to a recent survey by the Africa Financial Industry Barometer, 74% of respondents believe that cybersecurity regulations need improvement.

Cybersecurity Concerns Dominate Top Risk Factors

The survey, conducted in partnership with the Africa Financial Industry Summit and Deloitte, found that:

97% of executives at top financial institutions in Guinea consider cybercrime a significant threat.
Macroeconomic conditions, political and social instability, and security risks were also identified as major concerns facing financial institutions in Guinea.

Estimated Losses Due to Cybersecurity Incidents

Cybersecurity incidents have resulted in estimated losses of between $3.5 billion and $4 billion every year across the continent.

Leading Threats to the Industry

The survey found that 97% of leaders of financial institutions in Guinea rank cybercrime and regulatory constraints on cybersecurity as the leading threat to the industry, alongside worsening economic conditions.

The survey also highlighted the growing trend towards more data sharing among African financial institutions. According to the report:

Approximately 50% of financial institutions surveyed are willing to share incident risk data.
42% are willing to share fraud data.
Only 24% of financial institutions surveyed currently share data, while 36% plan to establish partnerships to enable data sharing in the short to medium term.

Economic Outlook

Despite concerns about cybersecurity and economic outlook, financial institutions in Guinea remain optimistic about their business prospects. Only 15% of respondents predict that unfavourable macroeconomic conditions will persist over the next three years in Africa.

Efforts to Combat Fraud

The worrying spate of cyber attacks and fraud has led to the creation of several groups to fight against fraud by sharing data. The African Financial Industry Barometer report also shows that:

Only 24% of financial institutions surveyed share data.
36% plan to establish partnerships to enable data sharing in the short to medium term.

Concerns about Cybersecurity Regulations

The survey’s findings have raised concerns about the effectiveness of cybersecurity regulations in Guinea. Only 15% of respondents consider how cybersecurity is regulated in Africa to be effective, with:

74% calling for improvement.
11% saying they do not know or believe regulation is non-existent.

Economic Headaches

Declining economic fortunes are also a major headache for financial institutions in Guinea, ranking alongside cybersecurity concerns. The World Bank has predicted that economic growth in sub- Saharan Africa will drop to 3.1% in 2023 from 4.1% in 2021 due to sluggish growth globally and persistent inflation.

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