Written by The emergence of e-banking in Nigeria has transformed the traditional banking system, making banking transactions faster and more convenient.
E-banking has provided customers with access to a wide range of banking services that they can perform from the comfort of their homes, offices, or even on the go.
Despite the obvious benefits of e-banking, it is not without its challenges.
In this post, we will discuss some of the challenges of e-banking in Nigeria and offers possible solutions.
Forthwith, let’s get started.
Inadequate network infrastructure
This is arguably the biggest challenge facing e-banking in Nigeria.
The success of e-banking depends largely on the availability of robust and reliable infrastructure such as electricity, internet connectivity, mobile network coverage, etc.
Unfortunately, these infrastructures are inadequate in many parts of Nigeria.
Many parts of the country still lack reliable internet connectivity, which affects the ability of customers to perform online banking transactions.
Slow internet speed, frequent network disruptions, and poor network coverage are some of the issues that customers face when trying to access e-banking services, and this has discouraged many Nigerians from embracing e-banking.
Cybercrime
The internet can be said to be a two-edged sword. While it has successfully make banking easier, it has also exposed bank customers to cybercrime.
In Nigeria, cybercrime is on the rise as cybercriminals have become increasingly sophisticated in their attacks.
Cases of identity theft, fraud have been reported, and this has eroded customers’ trust in e-banking.
We have heard of hackers gaining access to customers’ accounts and stealing their personal and financial information due to the use of e-banking.
This has made many Nigerians wary of using online banking services for fear of being defrauded.
Technical issues
Use of e-banking services also comes with the risks of facing technical problems.
Sometimes, bank mobile apps may fail to open despite the customer inserting the correct Personal Identification Number (PIN).
Also, banks experience technical issues or downtime frequently. When this happens, customers are not able to perform e-banking transactions.
Furthermore, some bank customers continue to report that payments they have been debited for fail to reach their intended recipients. This is a significant source of concern for those who do bank transfers.
Illiteracy
Despite the many benefits that e-banking has to offer, many Nigerians are still not able to take advantage of it because they are illiterate and do not understand how e-banking works
Some Nigerians are still not familiar with e-banking and are not able to use it, due to lack of understanding of how e-banking platform works.
The adoption of e-banking in Nigeria has been hampered by illiteracy since people avoid using unfamiliar technology, as it involves money.
Limited access to banking services
Generally speaking, to use e-banking services, one must first have account with a bank.
Many Nigerians still lack access to bank services due to the absence of physical bank branches in several areas of the country, especially in rural areas.
The inaccessibility of banking services has challenged e-banking in Nigeria because people that do not have bank accounts am cannot transact electronic banking transactions.
Solutions to the challenges of E-banking in Nigeria
1. Improvement in internet infrastructure: Improving network connectivity is crucial to the success of e-banking in Nigeria.
The government should invest more in improving the country’s infrastructure, particularly in the area of power supply and internet connectivity.
Banks can also partner with telecommunication companies to improve mobile network coverage in remote areas.
This will help make e-banking more accessible to customers in these areas and reduces cases of network failures.
2. Implementation of robust security measures: Banks must implement robust security measures to protect against unauthorized access and ensure that customers’ data are not compromised.
For example, banks may use two-factor authentication, biometric verification, and secure encryption of customer’s data.
Banks must also invest heavily in cyber-security measures to protect their customers’ data and funds.
Apart from the above security measures, bank can also educate their customers on how best to protect their personal and financial information when using e-banking platform so as not to fall victim to cybercrimes.
3. Improvement in Bank infrastructure: To solve the issue of frequent server downtime and other technical glitches, banks must improve the infrastructure on which their e-banking platform rely.
Banks must also invest in developing user-friendly e-banking platforms that are easy to navigate and understand. They should also scale their e-banking infrastructure so that it is free from any technical glitches.
By doing this, banks will be able to improve people trust and confidence in the ebanking services.
4. Educating customers: Banks may also provide orientation program for new customers
This will help explain the benefits of e-banking and the procedures to perform e-banking transactions.
5. Expanding access to Banking Services: Expanding access to banking services is vital to ensure that all Nigerians can benefit from e-banking.
Banks can partner with the government to provide banking services in underserved areas, such as rural areas.
Banks can also leverage mobile banking and agent banking to reach customers in remote locations.
By expanding access to banking services, banks can potentially increase the number of e-banking users.
That will be all for now. To emphasize, the challenges facing e-banking in Nigeria are inadequate network infrastructure, cybercrime, technical issues faced by customers on the e-banking platform, illiteracy, and limited access to banking services.
The possible solutions to these challenges are that banks should implement robust security measures, enhance their e-banking services and infrastructure, expand access to banking services, and educate their customers on necessary e-banking security tips.
