Equity Group has embraced artificial intelligence (AI) as part of its strategy to combat fraud, complementing its collaborations with the Communications Authority and the Directorate of Criminal Investigations (DCI). The bank’s Managing Director and CEO, Dr. James Mwangi, highlighted this development during the lender’s earnings release on Thursday.
Dr. Mwangi noted that fraudsters continue to exploit social engineering techniques, posing a persistent challenge to the bank. He emphasized that while Equity has no control over the phone numbers used by fraudsters to deceive customers, AI has helped identify suspicious transactions more effectively.
The lender has reported that by incorporating AI into its fraud detection systems, it has managed to reduce fraudulent activities by 30 percent. The system works by analyzing fraud patterns and flagging suspicious transactions for further scrutiny.
“Every fraud case is analyzed and fed into the AI system to detect unique patterns. We then isolate such transactions for further screening. Our goal is to minimize fraud because even one case is one too many, as it could mean a customer losing their only savings,” Dr. Mwangi explained.
Equity has also enhanced its collaboration with the DCI to improve traceability of fraud-related phone numbers. According to the Group’s Head of Security, Naftali Mwangi, fraudsters often operate using external networks, making it difficult for the bank to monitor them directly.
Despite challenges related to fraud, Equity Group posted strong financial results, recording a 17 percent increase in profit before tax, reaching KSh 60.7 billion. Profit after tax stood at KSh 48.8 billion.
The bank’s total deposits grew to KSh 1.4 trillion, with its customer base expanding to 21.6 million in 2024. Cash and cash equivalents rose by 19 percent to KSh 345 billion, while investment securities increased to KSh 512 billion, contributing to a liquidity ratio of 57 percent.
Regional subsidiaries continued to play a significant role in the Group’s performance, accounting for 49 percent of total assets, 48 percent of total loans, and 54 percent of profit before tax. While the Kenya unit remains a key player, it contributed 46 percent of total revenue.
Equity Bank Rwanda recorded a 36 percent year-on-year revenue growth, Tanzania grew by 20 percent, and the Democratic Republic of Congo (DRC) saw a 9 percent increase. Profit after tax (PAT) for Rwanda surged by 30 percent, Tanzania by 107 percent, Uganda by 186 percent, and DRC by 29 percent, highlighting the growing importance of regional operations.
Dividend Payout to Shareholders
In line with its commitment to shareholders, the bank has proposed a dividend of KSh 4.25 per share, reflecting its strong financial health and confidence in future growth.
With AI-driven fraud detection and strengthened security measures, Equity Group continues to prioritize customer safety while expanding its regional footprint and boosting investor confidence.