Banks must strike a careful balance between complying with data localisation measures and maintaining uninterrupted digital services, according to the Chief Technology Officer of First City Monument Bank, Blessing Ehize.
Speaking at the CIO & C-Suite Conference and Awards Africa in Lagos, Ehize advocated a risk-based approach to data localisation, arguing that financial institutions must weigh data sensitivity, cybersecurity threats, infrastructure capacity, and service continuity before making operational shifts.
He explained that migrating, storing, and processing data carry inherent risks, making it imperative for banks to implement safeguards that protect customer information while minimising service disruptions.
“Beyond physical infrastructure, institutions must strengthen their cybersecurity capabilities, technical expertise, and operational resilience to sustain digital banking,” Ehize said.
While acknowledging the financial implications of upgrading local systems, he urged banks to balance innovation with cost efficiency. He noted that technology investments should be evaluated not just on security requirements, but on their contributions to customer experience, operational efficiency, and long-term business performance.
To achieve these dual objectives of localisation and reliability, the FCMB technology chief called for stronger collaboration among regulators, banks, financial technology companies, data centre operators, and technology providers. He noted that coordinated implementation would enable the sector to meet localisation targets without compromising the reliability of digital financial services.
