DIAMOND BANK/MTN STARTS MOBILE BANKING SERVICES
(Congrats: Useful. Convenient. Tempting. Highly Dangerous)
--Attorney Patryk Utulu

Diamond Bank Plc in partnership with MTN Nigeria [has] officially unveiled the “Diamond Y’ello Account” (DYA) to offer mobile banking services in Nigeria. (credit: SkyTrendNews). This is an inevitable development: Mobile Banking is useful and convenient. IT IS ALSO HIGHLY DANGEROUS!

Because of Nigeria's death-trap roads, criminally expensive phone card system, inconsistent electricity, suffocating traffic snarls and large pool of jobless youths, mobile banking is almost irresistible. BE WARNED: MOBILE BANKING HAS VERY SERIOUS SECURITY ISSUES: security of personal data as well as your personal security mindful of kidnappings. PLUS, SECURITY OF YOUR MONEY.

Diamond Bank/MTN collaboration means both companies will have access to your personal info, including the info of family, friends and any person with whom you communicate. Workers of both companies will have your info. DO YOU TRUST MTN WORKERS WITH KNOWING HOW MUCH IS IN YOUR BANK ACCOUNT? SHOULD YOUR BANK WORKERS KNOW WHO YOU ROUTINELY CALL?

Password issues will come up. If MTN hires the wrong people who will be held to account for any misuse of your data? Bank workers learn to NOT talk about money in peoples' account. Do you trust MTN workers to also keep their mouths shut?
SO ASK QUESTIONS BEFORE YOU SIGN UP FOR ANYTHING: has your bank signed you up automatically? Did you give permission? You have the right to ask to be removed and the right to be shown EVIDENCE of the removal of your info.

NOTE: I DIDN'T say Mobile banking is bad. My interest is that Nigerians must be treated with respect. Nigerians deserve Informed Consent: the consent you give only after being told of all advantages and risks in what you are getting into. Data risks. Personal risks. Financial risks. Fraud is easier in electronic banking. So ask questions or talk to a lawyer. Would the bank fully refund your money regardless of whether bank workers or MTN workers misused your data? Full refund includes the refund of the cost of hiring a lawyer if, instead of helping you, they initially resorted to that well-known Nigerian tactic of telling you to "come back tomorrow."

MOBILE BANKING IS NEW SO HERE IS A SIMPLE WAY TO PICTURE IT: Mobile banking is like sex without condom. If it is 'sweeter' and brings higher sensation it is also riskier: especially if you are coupling with a partner like MTN that is also coupling with millions of other people.

Patryk A. Utulu is a U.S.-based attorney and Strategic Communications Specialist
Global Defense Analyst and Global Events Commentator
Executive Vice President, Nigerian Diaspora-North America
Executive Director, The Center for Community Empowerment and Lifeskills, Inc.
[All Rights Reserved 08112014. Copyrights Strictly Enforced. Fair Use Permitted]

Quite an eye opener.

Hmm. Personally I use mobile banking services on a separate savings account, with anything mobile (even alerts) deactivated on the current(main account). People should be cautious about how much convenience they crave for, it often means higher chances of compromise.