The role of Artificial Intelligence in identity technologies: A comprehensive analysis of the Nigerian fintech ecosystem

Identity technologies in Nigeria’s fintech ecosystem are witnessing the palms of Artificial Intelligence (AI), making security more simplistic, more efficient and more open in the digital financial service. The paper offers a complete review of the AI based identity solutions which are used for fraud detection, customer authentication and regulatory compliance. The study uses structured literature review to understand the according role of machine learning, biometrics and blockchain in enhancing identity verification process. This shows that AI based identity technologies can help prevent fraud and reduce the time taken in KYC procedures and also improve financial inclusion. While challenges like data privacy concerns, regulatory inconsistencies and the risk of algorithmic biases, are still significant hurdles. Finally, the study argues that we need a balanced regulatory framework that enables ethical deployment of AI in the fintech sector but at the same time having the ability to promote this innovation. Also, it underlines the need for cross cooperation of financial institutions with technology service providers and policymakers improving trust and security of digital banking. Financial security and inclusion can be fully harnessed by Nigeria’s fintech landscape when these challenges are addressed, which can be achieved through AI driven identity technologies. The paper ends with recommendations for improving policy, engaging stakeholders and future research direction to optimize AI’s role in identity verification in Nigeria’s evolving financial ecosystem.