Banks leverage on digital innovation to remain in business -investigation

There is no gainsaying about the embedded financial benefits infused in the ongoing technological transformation in the Deposit Money Banks (DMBs) operating in the country.

This is because the introduction of Mobile Apps by all the commercial banks, has been linked to the new marketing strategy imbibed by the lenders to boost profit growth, increase customers’ base and enable them to remain in a highly competitive business environment, investigations by The Daily Times has revealed.

Although there is low Internet penetration in the country impacting negatively on businesses, however, banking applications are being embraced on a large scale.

This is,. especially so because, the Nigerian financial has keyed into this infrastructure to add value to its operations with a view to raising the business bar in the continued quest to meet customer’s demands.

More so, that every bank in Nigeria now has a mobile application to raise its business bar and remain competitive in the banking market. For this reason banks ahve been deploying various innovative infrastructure in their growing desire to satisfy the growing banking public.

For instance, Guaranty Trust Bank (GTBank) recently launched its new version of its mobile App ‘GTWorld’, which merges the bank’s internet banking and mobile money services.

Also, First Bank of Nigeria has a mobile platform, known as FirstMobile, with Access Bank of Nigeria operating AccessMobile, while Ecobank Transnational Incorporation (ETI) new mobile App believed to have the scale and capacity to achieve its 100 million customer ambition in a profitable and sustainable way.

Others include: U-Mobile by United Bank of Africa (UBA); eaZymoney by Zenith Bank; StanBic IBTC Mobile Money; HB padie mobileBank by Heritage Bank; Diamond Bank; Fidelity Bank; Skye Bank; Wema Bank First City Monumental Bank (FCMB) and Standard Chartered Bank Nigeria, all have different mobile to their credit.

But the most recent of them all was the Union Bank of Nigeria’s (UBN’s) new mobile banking app version, UnionMobile, which was launched barely week in Lagos and *826#, a unique USSD code, which will allow customers perform banking transactions through short code messaging on their mobile phones.

Interestingly, as customers have been applauding the move by the banks in this latest embrace, saying it is a welcome development, others cautioned against the banks to be wary of fraudsters, who may want to beat the operators to it and perpetrate financial crimes, smear the country’s as well as the banks’ image.

Meanwhile, a bank customer, Mr. Olukunle Olujimi, who spoke to our correspondent, said that there is no doubt that mobile revolution is slowly taking place in the country, and believed is a right in the right direction in curbing armed robbery because there will be no physical cash to cart away when they visited.

Another depositor, Mrs. Arinola Adekunle, wanted to know measures put in place by the lenders in ensuring safety of their customers’ fund.

“Are they safe? I’m just scared to use any of those apps. I feel they are not really okay because hackers are everywhere these days”, she queried.

Concern of another depositor revolves round some of the banks who sell their token, saying that it is highly discouraging, and a set back of the financial inclusion drive of the central bank of Nigeria.
According to Uche Nnamdi, Nigerian banks are 200 years behind, claiming that Nigeria needs to fast in its dealings in order to catch up with Yemen, who had started using digital innovation in advancing its banking services over 200years ago.

While this new platform ensure provision of numerous services for the banks customers at their finger tips, as beneficiaries of such services are charged for such, which many users continued to groan over arbitrary charges.

However, in the early part of second quarter (Q2), the central bank issued its Guide to charges by Banks and Other Financial Institutions in Nigeria. The guide according to the CBN “provides for charges on various products and services that banks, other financial institutions and mobile payment operators offer to their customers.

Following the release of the Guide customers have raised concerns regarding the charges stipulated, while questioning the intent of the CBN on whether it is really in the business of regulating or assisting banks to make more money for themselves at the expense of customers.

Experts also concluded that excessive charges as well as the lack of transparency and timely communication by banks to customers was detrimental to the successful drive for financial inclusion.

Nevertheless, increasing competition with numerous alternatives within the industry, as well as, activities within the Fintech space appears to offer a way out for the financial savvy that can easily opt out when the services offered by a bank is becoming unbearable.

The CBN in response to the concerns raised has reiterated that the guide reflects developments within the economy and the financial market, and it had “in the quest to provide a strong voice to banks’ customers and moderate the arbitrary charges established its Consumer Protection Department in 2012.”

Other bodies, such as, the Consumer Advocacy Foundation of Nigeria (CAFON) and the Bank Customers’ Association of Nigeria (BCAN) have continued to advocate for customers rights, while these concerns have presented opportunities for consulting firms to benefit from the reviewing of bank charges and interest on loans – all in an attempt to alleviate the burden customers have to bear.