Digital Banking in Nigeria: Problems and Solutions

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Digital Banking simply refers to the use of the internet mobile network in delivering banking services. Digital Banking can simply enable bank customers to perform any banking activities and transactions such as withdrawals, transfer of money from one bank account to another, payment of bills, accounts opening, account balance enquiry and statement of account.

The above transactions can be carried out using ATM machines, mobile phones and the internet. Though digital banking has lots of advantages, but not without some disadvantages.

Due to the high usage of internet enabled phones and relatively cheap data Nigerians has resorted to the usage of digital banking. It is a more secure and convenient way of doing transaction.

This post is aimed at listing the problems of digital banking in Nigeria and also proffers solutions to them.

  1. The ease of usage

Some of the platforms used in digital banking are not easy to use because of the complexity in their nature. A good example is the software in some mobile app which normally comes with a poorly developed user interface that makes it difficult to navigate.

Most Customers would rather abandon the platform than to make transaction based on error and trial method with their hard earned money.

A good solution to this problem is the ability for Banks to make the platform user friendly. They should reduce the amount of time spent online doing transactions. Spending less time online doing banking transactions will go a long way in encouraging customers on digital banking.

  1. Poor internet service and mobile network

One of the major problems facing digital banking in Nigeria is the poor rate of internet connections and bad mobile networks. Customers prefer not to use digital banking because of the unreliable nature of networks in most part of the country. Bad network can lead to unwarranted mistakes that can be so costly to customers.

The best solution to this problem is for the internet providers to improve on the distribution of internet services across the country.

  1. Fraud

The high rate of internet fraud is a major obstacle that discourages customers from using digital banking. There has been a rise in card cloning and identity theft in recent years and this has really made customers to be skeptical about digital banking.

The government has been doing their best to cob the rising rate of internet fraud by sensitizing the public with possible security risks involve in digital banking.

  1. Lack of customer trust

Digital banking in Nigeria is feared most times by customers because of the lack of trust the exhibit in it. Knowing that a simple mistake can cost them a lot of money, customers would be so scared and prefer not use digital banking.

It is important for Banks to sensitize the public by creating awareness on the usage of digital banking and how it can be trusted in making easy and quick transaction. This will build customers trust on the platform.

  1. Poor customer service

The slow response by bank service providers during emergency case is usually poor. Most of these banks sometimes don’t or usually respond late to customers complain about the digital banking usage. Most customers lose money during transaction and they were unable to rectify the problem because of the untimely response from the bank service providers.

The banks should try as much as possible to have a 24 hours emergency response unit that would respond quickly to customers’ emergency calls.

  1. Inadequate maintenance

Lack of maintenance and continuous monitoring is major problem associated with digital banking in Nigeria. Hardware malfunction (especially ATM machine) cases have been reported continuously by customers and this is due to the lack of maintenance culture by the banks.

Banks should have a well planned maintenance routine in order to reduce the high rate of hardware malfunctions. This will encourage customers to use digital banking services.

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