Electronic Banking In Nigeria, The Challenges And Some Of The Advantages

Electronic banking happens to be one of the newest technology advancement in Nigeria today, it has improved the banking sector, making it easier for bank customers to perform transaction without going to the bank.

Electronic banking is now a globally utilized technology used all around the world, even Nigeria is yet to harness the full potential of electronic banking.

 

 

Some Of The Challenges Of Electronic Banking In Nigeria

1. Internet Fraud:

Internet fraudulent activities are now very popular in Nigeria, as fraudsters have taken advantage of the electronic banking sector to defraud lots of users. There have been widespread news about people being defrauded by fraudsters going to the ATM Machine and withdrawing their victim’s money. Users also defraud other users by performing fake transaction through the electronic banking system which are all the challenges user get by using the system.

 

2. Very Poor Internet Connectivity

This is one of the challenges of using the Electronic Banking system in Nigeria. We are really facing poor internet connectivity problem which is supposed to be the engine house of the Electronic banking system. There is always transaction failure because of the poor internet connections we have in Nigeria and sometimes users who are transferring money get debited without the receiver getting the transferred funds.

 

3. Insecurity For Banks:

Hackers now monitor all activities in the bank and make use of certain technological methods to hack banks in Nigeria. Hackers hack into banks database and loot customer’s funds using variety of means. The manual method of banking has less security, because customers are being manually verified by banks before the transaction is been performed.

 

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4. Unemployment Challenge:

The electronic banking system in Nigeria has contributed to poor employment status in the banking sector. Banks now believe that since customers can actually perform most transactions by themselves, there is no need employing staff to perform such transaction for customers anymore.

 

 

Some Of The Advantages Of Electronic Banking In Nigeria

1. Save Time:

The Electronic Banking system saves lot of time for both the users and that of the bank staff. The formal manual banking methods has some hitches and one of them is spending much time performing a transaction that could be done within a very short time. In Nigeria, the Electronic Banking system has become a timesaver aiding users to perform multiple tasks in less time.

 

2. No Location Barrier:

The Electronic Banking system is not limited to locations, it can even be done from the comfort of your home. Bank customers can now comfortably perform any bank transaction from anywhere in the country by using just an electronic device without needing to go to the bank.

The Electronic banking system has greatly reduced the excessive traffic jams in some major cities, as it has minimized the number of persons who go to banks to perform transactions.

 

3. The Ease Of International Transaction:

The Electronic Banking system has enabled users (individual and businesses) to be able to do transaction with the rest of the world. Some years back, it was very difficult to do international transaction. You have to go to the bank, stay on queue for hours, doing bank draft etc. it was really stressful.

 

Now through Electronic Banking, transactions can be done, tracked, between users in Nigeria and other users worldwide.