An appraisal of the role of digitalization in corporate banking risk management: A case study of Access Bank Nigeria, Kano.
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Background of the Study
Digitalization in corporate banking risk management has become essential for safeguarding financial institutions against emerging threats. Access Bank Nigeria, Kano, has embraced digitalization by integrating advanced risk management systems that utilize real-time data analytics, machine learning, and automated monitoring tools. This digital approach is designed to identify, assess, and mitigate risks more efficiently than traditional methods (Oluwaseun, 2023). By automating risk assessments and incorporating predictive analytics, the bank can proactively address potential vulnerabilities and reduce exposure to fraud and operational failures (Adeleke, 2024).
The digitalization process at Access Bank involves the integration of various tools that enable continuous monitoring of market conditions, customer behavior, and internal processes. These systems not only enhance the accuracy of risk evaluations but also support compliance with stringent regulatory requirements. Moreover, digital risk management frameworks facilitate rapid decision-making and enable the bank to implement corrective measures before risks escalate (Chisom, 2025). However, the adoption of digital solutions introduces challenges, such as ensuring data integrity, protecting sensitive information, and integrating new technologies with legacy systems.
Access Bank’s commitment to digitalization reflects a broader trend in the corporate banking sector, where digital tools are increasingly used to enhance risk management practices. This study evaluates the effectiveness of digitalization in mitigating risks, examines the challenges associated with integrating digital risk management systems, and assesses the overall impact on the bank’s operational resilience and regulatory compliance.
Statement of the Problem
Despite significant investments in digital risk management, Access Bank Nigeria, Kano, encounters several issues that compromise its risk mitigation efforts. One major challenge is the integration of advanced digital tools with existing legacy systems, resulting in data inconsistencies and delayed risk assessments (Ibrahim, 2023). These integration problems can lead to gaps in risk monitoring and increase the likelihood of undetected vulnerabilities. Additionally, the rapid pace of digital innovation makes it difficult for the bank to continuously update its risk management protocols, leaving it exposed to new cyber threats and operational risks (Balogun, 2024).
Another critical issue is the need for specialized expertise to manage and interpret the large volumes of data generated by digital risk management systems. Without proper training, staff may struggle to fully leverage these tools, reducing their effectiveness. Moreover, concerns about data privacy and the potential for cybersecurity breaches further complicate the digitalization process. The high costs associated with upgrading technology and maintaining robust security measures also place a financial burden on the bank (Ogunleye, 2025). These challenges underscore the gap between the theoretical benefits of digital risk management and the practical difficulties encountered during implementation.
Objectives of the Study
• To evaluate the impact of digitalization on risk management practices in corporate banking at Access Bank, Kano.
• To identify integration challenges between digital risk management tools and legacy systems.
• To assess the effectiveness of digital tools in enhancing risk mitigation and regulatory compliance.
Research Questions
• How does digitalization improve risk management in corporate banking at Access Bank, Kano?
• What are the primary challenges in integrating digital risk management tools with existing systems?
• How do digital risk management systems affect regulatory compliance and operational resilience?
Research Hypotheses
• H1: Digitalization significantly enhances risk management practices in corporate banking at Access Bank, Kano.
• H2: Integration challenges between digital tools and legacy systems negatively affect risk mitigation effectiveness.
• H3: The adoption of digital risk management tools is positively correlated with improved regulatory compliance.
Scope and Limitations of the Study
This study is limited to the corporate banking risk management processes at Access Bank Nigeria, Kano. Limitations include restricted access to sensitive internal data and the dynamic nature of cybersecurity threats.
Definitions of Terms
• Digitalization: The integration of digital technologies into business processes.
• Risk Management: The process of identifying, assessing, and mitigating risks.
• Legacy Systems: Older IT systems that may hinder digital integration.
• Predictive Analytics: Techniques used to forecast future risks based on historical data.
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