IDEAS home Printed from https://ideas.repec.org/a/zib/zbnaim/v7y2023i1p54-62.html
   My bibliography  Save this article

Cybersecurity In U.S. And Nigeria Banking And Financial Institutions: Review And Assessing Risks And Economic Impacts

Author

Listed:
  • Chibuike Daraojimba

    (University of Pretoria)

  • Okeoma Onunka

    (Nigerian Institute of Leather and Science Technology Zaria Kaduna Nigeria)

  • Ayoola Maxwell Alabi

    (Independent Researcher, UK)

  • Chiedozie Marius Okafor

    (United States Mission, Nigeria)

  • Anwuli Nkemchor Obiki-Osafiele

    (Zenith Pensions Custodian Ltd)

  • Tochukwu Onunka

    (Abia State Oil Producing Area Development Commission)

Abstract

The digital transformation of the global financial landscape has brought forth unprecedented opportunities and challenges, particularly in the realm of cybersecurity. This paper delves into the intricate dynamics of cybersecurity within the banking sectors of two pivotal players in the global economy: the United States (U.S.) and Nigeria. Through a comprehensive exploration, the study underscores the profound significance of robust cybersecurity measures in safeguarding the integrity and security of financial institutions in today’s interconnected digital age. The research begins with a deep dive into the background of cybersecurity in financial institutions, revealing the escalating importance of digital defenses, especially in an era marked by frequent and sophisticated cyber threats. The interconnectedness of today’s financial systems and the rise of digital transactions amplifies cyber breaches’ potential risks and economic impacts. A comparative study of the U.S. and Nigerian banking systems showcases the unique challenges and solutions each country’s financial institutions face. While the U.S. grapples with issues like money laundering and the need for increased competition, Nigeria’s banking landscape is influenced by factors such as the potential of Islamic banking and the challenges of financial inclusion. Emerging technologies, particularly artificial intelligence, are highlighted as cybersecurity game-changers. Their ability to predict, detect, and respond to threats in real-time offers a promising avenue for enhancing digital defenses. However, the paper also cautions that with technological advancements come new challenges, as adversaries too harness these technologies for more sophisticated attacks. The paper concludes with a forward-looking perspective, emphasizing the need for continuous investment in research, collaboration, education, and agile policymaking. It advocates for a unified approach, where financial institutions, regulatory bodies, and cybersecurity firms work in tandem to ensure the security and trustworthiness of the financial sectors in both nations. In essence, this research provides a comprehensive overview of the current state of cybersecurity in the banking sectors of the U.S. and Nigeria, offering insights and recommendations for fortifying defenses and ensuring financial stability in the digital age.

Suggested Citation

  • Chibuike Daraojimba & Okeoma Onunka & Ayoola Maxwell Alabi & Chiedozie Marius Okafor & Anwuli Nkemchor Obiki-Osafiele & Tochukwu Onunka, 2023. "Cybersecurity In U.S. And Nigeria Banking And Financial Institutions: Review And Assessing Risks And Economic Impacts," Acta Informatica Malaysia (AIM), Zibeline International Publishing, vol. 7(1), pages 54-62, September.
    • Handle: RePEc:zib:zbnaim:v:7:y:2023:i:1:p:54-62
    DOI: 10.26480/aim.01.2023.54.62
    as

    Download full text from publisher

    File URL: https://actainformaticamalaysia.com/archives/AIM/1aim2023/1aim2023-54-62.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.26480/aim.01.2023.54.62?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Emanuel Kopp & Lincoln Kaffenberger & Christopher Wilson, 2017. "Cyber Risk, Market Failures, and Financial Stability," IMF Working Papers 2017/185, International Monetary Fund.
    2. James Shires, 2018. "Enacting Expertise: Ritual and Risk in Cybersecurity," Politics and Governance, Cogitatio Press, vol. 6(2), pages 31-40.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. José Ramón Martínez Resano, 2022. "Digital resilience and financial stability. The quest for policy tools in the financial sector," Financial Stability Review, Banco de España, issue Autumn.
    2. Silvia Facchinetti & Paolo Giudici & Silvia Angela Osmetti, 2020. "Cyber risk measurement with ordinal data," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 29(1), pages 173-185, March.
    3. Aldasoro, Iñaki & Gambacorta, Leonardo & Giudici, Paolo & Leach, Thomas, 2022. "The drivers of cyber risk," Journal of Financial Stability, Elsevier, vol. 60(C).
    4. Berger, Allen N. & Curti, Filippo & Mihov, Atanas & Sedunov, John, 2022. "Operational Risk is More Systemic than You Think: Evidence from U.S. Bank Holding Companies," Journal of Banking & Finance, Elsevier, vol. 143(C).
    5. Claudiu Ioan Negrea, 2022. "Can Cyber Risk Affect Financial Stability?," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 368-376, September.
    6. Anil K. Kashyap & Anne Wetherilt, 2019. "Some Principles for Regulating Cyber Risk," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 482-487, May.
    7. José Ramón Martínez Resano, 2022. "Digital resilience and financial stability. The quest for policy tools in the financial sector," Financial Stability Review, Banco de España, issue Autumn.
    8. Tim Stevens, 2018. "Global Cybersecurity: New Directions in Theory and Methods," Politics and Governance, Cogitatio Press, vol. 6(2), pages 1-4.
    9. Francisco José Herrera Luque & José Munera López & Paul Williams, 2021. "Cyber risk as a threat to financial stability," Revista de Estabilidad Financiera, Banco de España, issue Primavera.
    10. Mouhamadou Sow & Christina Gehrke, 2019. "Evaluating Information Security System Effectiveness for Risk Management, Control, and Corporate Governance," Business and Economic Research, Macrothink Institute, vol. 9(1), pages 164-172, March.
    11. Franklin Allen & Xian Gu & Julapa Jagtiani, 2021. "A Survey of Fintech Research and Policy Discussion," Review of Corporate Finance, now publishers, vol. 1(3-4), pages 259-339, July.
    12. Mohammed Afzal & Mohd. Shamim Ansari & Naseem Ahmad & Mohammad Shahid & Mohd. Shoeb, 2024. "Cyberfraud, usage intention, and cybersecurity awareness among e-banking users in India: an integrated model approach," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(4), pages 1503-1523, December.
    13. Crosignani, Matteo & Macchiavelli, Marco & Silva, André F., 2023. "Pirates without borders: The propagation of cyberattacks through firms’ supply chains," Journal of Financial Economics, Elsevier, vol. 147(2), pages 432-448.
    14. Md. Hamid Uddin & Md. Hakim Ali & Mohammad Kabir Hassan, 2020. "Cybersecurity hazards and financial system vulnerability: a synthesis of literature," Risk Management, Palgrave Macmillan, vol. 22(4), pages 239-309, December.
    15. Pelin Berkmen & Ms. Kimberly Beaton & Mr. Dmitry Gershenson & Mr. Javier Arze del Granado & Kotaro Ishi & Miss Marie S Kim & Emanuel Kopp & Mrs. Marina V Rousset, 2019. "Fintech in Latin America and the Caribbean: Stocktaking," IMF Working Papers 2019/071, International Monetary Fund.
    16. Ola Michalec & Sveta Milyaeva & Awais Rashid, 2022. "Reconfiguring governance: How cyber security regulations are reconfiguring water governance," Regulation & Governance, John Wiley & Sons, vol. 16(4), pages 1325-1342, October.
    17. Francisco José Herrera Luque & José Munera López & Paul Williams, 2021. "Cyber risk as a threat to financial stability," Financial Stability Review, Banco de España, issue Spring.
    18. Guglielmo Maria Caporale & Woo-Young Kang & Fabio Spagnolo & Nicola Spagnolo, 2020. "Cyber-Attacks, Cryptocurrencies, and Cyber Security," CESifo Working Paper Series 8124, CESifo.
    19. Tim Stevens, 2018. "Global Cybersecurity: New Directions in Theory and Methods," Politics and Governance, Cogitatio Press, vol. 6(2), pages 1-4.
    20. Cheng, Maoyong & Qu, Yang & Jiang, Chunxia & Zhao, Chenchen, 2022. "Is cloud computing the digital solution to the future of banking?," Journal of Financial Stability, Elsevier, vol. 63(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zib:zbnaim:v:7:y:2023:i:1:p:54-62. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zibeline International Publishing The email address of this maintainer does not seem to be valid anymore. Please ask Zibeline International Publishing to update the entry or send us the correct address (email available below). General contact details of provider: https://actainformaticamalaysia.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.