ONLINE images of people crowded in banks in various parts of the country may have shown that Nigerians are yet to completely embrace digital and online banking system in Nigeria.

After five weeks of lockdown in Lagos, Ogun and Federal Capital Territory (FCT), the federal government ordered the ease of lockdown on 4th May.

There are video footages of commercial banks in Abuja, Lagos and Ogun states that were packed full of customers, who appeared unmindful of social distance protocol.

Access Bank Ikotun, Lagos
Photo Credit: Tope Bisade /Twitter

Even micro-finance and development banks with fewer cutomer base recorded high number of visitors relative to their size.

Digital banking is part of the response to the cashless policy of the federal government.

The shift from traditional to digital banking has been gradual and remains ongoing, and is constituted by differing degrees of banking service digitisation.

Currently, in Nigeria, there are over 22 commercial banks that serve customers nationwide and all of which have mobile application platforms that serve customers from their location.

Currently more than 50 per cent of commercial banks today offer online services, including opening accounts online.

But many customers still prefer face-to-face banking transaction, especially because of the increasing cases of cyber crimes.

The mass appearance of customers in various banks on Monday has shown that Nigerians are yet to embrace digitisation in the banking sector.

Guaranty Trust Bank Area 3, Abuja
Uthman Samad /TheICIR

The world today is confronted by the emergence and necessity of digital banking in financial services.

In developed economies, fintech has posed a threat to established major retail banks as their speed to market and digitisation of banking services draw a large following due to their ability to make everyday banking more accessible.

In Nigeria, however, digital banking plays a much more significant role than fintech and retail banks.

Digital banking brings a world of opportunity to address pressing issues in access to finance, especially to a young and internet active population as well as growing middle class.

Both retail banks and fintech in Nigeria are using digital innovation in banking to solve problems in an exciting and modern way.

Peter Egun ATM officer for Zenith Bank Lagos who spoke to The ICIR said; ” Nigerians have always preferred to enter the bank for transactions. We daily educate them on the use of mobile applications but it is hard for them to just stop coming to the bank.”

Fashina Adeleye Assistant Manager Keystone Bank said: “We have concluded after different survey that people like being attended to physically, there are cybercriminals online these days and our customers are scared of putting their card details online.

“So as a bank what we are currently doing is tightening our cybersecurity system, our customers’ details are safe online at the highest level.”

READ MORE: https://www.icirnigeria.org/how-ease-of-lockdown-has-shown-nigerians-poor-acceptance-of-online-digital-banking-system/