Why you should start banking online despite its shortcomings

Estimated reading time: 3 minutes

Nigeria has experienced drastic growth in the aspect of digital banking. The evolution in the direction of online financial services and products presents certain advantages to both buyers and financial organizations.

Nevertheless, some issues about security and access become conspicuous. It is now the right time to look at modern Nigerian digital banking as an institution to understand its leading benefits and vices.

Digital banking has created the convenience we need

Digitization of banking services in Nigeria has never been as flexible as it is today. I recall how people used to move in big lines in physical branches of the bank to be served. Internet banking and most mobile applications offer the user convenient features allowing him to access his accounts from anywhere and at any time of the day. This allows for:

• Effortless transactions: Customers can perform a variety of tasks with a few taps or clicks, including fund transfers, bill payments, airtime recharge, and checking account balances.
• Simplified account management: Digital platforms allow users to easily view transaction history, download statements, and manage investments.
• Time savings: Digital banking eliminates the need to travel to a physical branch, saving valuable time.

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Nigeria’s digital banking has become more secure

Although convenience can be viewed as a major strength, securing data plays an important role in the process. Here’s a closer look at Nigeria’s digital banking landscape from a security perspective: Here’s a closer look at Nigeria’s digital banking landscape from a security perspective:

• Regulatory framework: Data protection and information security have not been left out in the guidelines sponsored by the CBN in which it has set standard regulations. This aids in the problem of ascertaining that the banks have adequate security.
• Advanced technologies: Most Nigerian banks engage in high levels of security measures such as multi-factor authentication, data encryption, and others including fraud control systems for users’ information and transactions.
• Cybersecurity threats: However, the digital platform is not static, and every time there is a new strategy from evil-minded hackers. Phishing continues to exist, and threats in the form of malware and social engineering are still active and are a cause of concern to users and banks.

How can more people, especially in rural areas, have access to Nigeria’s digital banking?

However, much more has to be done to break access barriers to realize optimum utilization of digital banking. Here are some key considerations:

• Digital Literacy: One can argue that some people within a society are unable to master the digital skills needed in banking via the Internet. There is a need to encourage financial literacy and their respondents’ embrace of digital financial services.
• Internet Penetration: As much as connectivity is increasingly becoming a characteristic feature of Nigeria and as much as telecommunications organizations are working hard to spread connectivity, there are regions within Nigeria that are either partially or intermittently connected to the internet. This can slow down the development of digital banking services in these areas.

The road ahead

Convenience cannot be doubted as Nigeria currently boasts of a relatively good digital banking system that has lots of benefits and depicts a high capacity for financial inclusion. However, the organization’s commitment to adopting improved cybersecurity measures and closeness to enforcing higher educational levels of digital literacy could improve the creation of a safer environment for all.