Nigeria - Banks Set For Cashless Banking

There are many banks nowadays are using SMS for instant transaction alerts.

In Nigeria, almost everything is paid for in cash. In supermarkets, cheques are hardly acceptable, and when accepted, delivery of goods and services are only completed when the beneficiary gets value from the bank. So, Nigeria has remained a cash-based economy, despite growth in the banking sector and billions of naira invested in electronic banking over the years.

But all these may change if a Central Bank of Nigeria (CBN) policy limiting daily cash withdrawal and lodgments to N150,000 by individuals and N1 million by companies, effective June 1, 2012.

The apex bank took this step to curb dominance of cash in the economy with its implication for cost of cash management to the banking industry, security and money laundering. However, the policy did not come to many banks with proven track record performance in e-payment by surprise.

Already, First Bank, United Bank for Africa, Access Bank, Guaranty Trust Bank, Wema Bank and Diamond Bank, among others have developed tested and viable products/services tailored towards effective management of cashless banking.

For instance, at First Bank, the First Pay, a web-based payment platform designed and developed to allow customers directly effect payment instructions from their offices online real time in a very secure and efficient manner is provided. Since the First Pay service is available over the web, payments and authorisations can be done regardless of location. The product is most suitable for clients who carry out bulk payments against their accounts in form of Salary Payment, Vendor/Supplier Payment, e-Dividend, Pensions among others regardless of account bank. It gives the corporate the power to execute their payment instructions without first sending a physical instruction to the bank and waiting for the bank to effect the instructions.

With this service, customers can check their account balances anywhere, anytime; view consolidated bank account balances across banks; secure e-cheques as well as issue and upload e-cheques for Vendor/Supplier payments among other benefits. The bank has also introduced First Alert to give customers instant notification of every transaction that takes place in their accounts through e-mail or Short Messaging Service (SMS). It comes as transaction alert, trade alert, and first guard.

Also, trade alert gives customers instant notification of every stage of their trade finance from the point of capturing Form ‘M’ to the stage of establishing their Letter of Credit (LC) while FirstMobile banking is a network independent mobile phone solution that provides financial services and other value added services using the mobile phone and a prepaid card.

It can be effected using network services, such as MTN, Airtel, Glo, Starcomms and enables users check their balances and transaction details, authorise payment verify account , electronic fund transfer among other services from home. First Online, an internet banking service simply requires that a beneficiary has a savings or current account with the bank to enable him check account balances, see account activity, including uncleared effects among others.


Source: Posted in thenationonlineng by Collins Nweze on 26th October 2011