CRYPTO TO THE RESCUE: THE PROBLEMS OF THE NIGERIAN BANKING SYSTEM
Our banking system here in Nigeria is plagued with a lot of problems, in this informative piece we are going to look into some of them and how crypto’s superior technology is the perfect solution to these problems. So let’s start with the problems.

HIGH NUMBER OF UNBANKED ADULTS
It is estimated that about 39% of Nigeria’s adult population is unbanked. A deep investigation into to root cause of this problem revealed a couple of things. One of the major reasons for this was traced to the lack of close access to the banking hall. Most Nigerians living in rural areas of the country refuse to open a bank account because of the distance to the nearest bank office. After considering the stress and cost from their homes to the bank office many would just prefer to hold on to their cash. Another issue was traced to stringent requirements for opening accounts. Most Nigerians living in rural areas don’t have access to meters therefore it is difficult for them to provide things like utility bills required to open a bank account.

HIGH TRANSACTION FEE
Most Nigerians living outside the country from time to time need to send some money home for their families and loved ones but this is usually very difficult given our banking system. To do that countries like the United States they run the risk sometimes of getting their foreign accounts blocked because of the anti-money laundering compliance process of these banks and financial institutions. These institutions flag any transaction which is above $10,000 coming to Nigeria and just blocks the offending account without further communication with the sender. When you decide to split the transactions the charges per transaction could be very exorbitant. Transaction fees for processing international transfers could get as high as $40 per transaction.

SLOW TRANSACTION SPEED
Sending money from one account to the other in the same bank here in Nigeria takes a few minutes to process but once you start talking about inter-bank transfers the transaction speed starts dropping drastically from 5 minutes to even days. The delay starts pilling up when you start talking about international transfers. An average international bank transfer could take from 5 working days to weeks or even months.

CRYPTO TO THE RESCUE
Here’s how crypto addresses each of these issues

UNBANKED POPULATION: with cryptocurrency all you need is just access to the internet and a phone. With these, you can easily open a wallet and start receiving/sending funds. There’s no need for going to the banking halls just to set up an account. For most crypto wallets like trust wallets, you don’t need any document to get started.

HIGH TRANSACTION FEE: the average transaction fee on the blockchain are usually low and for some blockchains completely free. Litecoin (LTC) has an average transaction fee of $0.0070 per transaction, Stella Lumen (XLM) is $0.0000035 while blockchains like EOS, IOTA, and Nano have a completely free transaction fee per transaction.

POOR TRANSACTION SPEED: it is only in the crypto space that you talk about real-time transactions because of blockchain technology. Blockchains like the Nano and Solana blockchains have an average transaction speed of seconds while those of Bitcoin and Ethereum are just in minutes.

From the above, it is clear that a lot of the issues that we face with our banking system here in Nigeria could easily be solved by crypto. Our commercial banking system is operating under an outdated technology system and the problem with most of them is that they are incapable of adapting and upgrading to meet the growing demands of the population, which makes Nigerian financial sector disruption inevitable. It is just a matter of time.

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