5 Risks Associated With Digital Banking in Nigeria

Digital bank risks

Years after the advent of internet technology and the growth of digital banking in Nigeria, it is quite surprising to know there are Nigerians who are doubtful and sceptical about the authenticity and trustworthiness of the internet and digital banking.

Some people (especially senior citizens) believe the idea behind digital banking is somewhat too abstract and is just a facade to lure them into stacking up their hard-earned money with some virtual fortress controlled by the manipulation of ones and zeros.

Despite the many benefits tied to digital banking, some people are not fascinated by the idea of it or are just too scared of the risks associated with it. For this reason, they will rather keep their money and carry out transactions the old-fashioned way involving physical exchange and feel of cash in their hands.

While digital banking offers numerous benefits such as speed, comfort, ease, and spontaneity, here are a few possible risks that you should watch out for while using the platform for transactions.

  • Processing errors

One major risk associated with digital banking is processing errors. As much as this is quite rare within the space of digital banking, it occurs sometimes. Although computers and their ability to process data are almost flawless, system malfunction may occur as a result of human oversight in initiating correct commands, leading to processing errors. However, this is almost always self-rectified by the system or the operations control unit before further disruptions such as loss of transaction trails can occur.

  • Risk of viruses/malware

There is the risk of viruses and malware, sometimes introduced by hackers who are bent on sabotaging the operation of a digital bank or by those trying to steal confidential information from digital databases. However, digital banks are aware of this risk and do not compromise in upgrading the security of their platform and databases from time to time.

  • Hackers and Phishing

Hackers also pose a threat to digital banking. With their many tricks and traps, hackers can make things go wrong very quickly if they have access to the backend of digital banking tech or customer databases. One of the means by which they do this is through Phishing. Phishing involves creating a decoy website, app, or web pages and links that look like the original site of the digital bank’s platform. It is meant to lure unsuspecting users into giving up confidential details such as login IDs, passwords, pins, authentication codes, etc. As a subscriber of digital banks, you owe yourself the responsibility to secure your account by protecting your login details.

  • Online theft/fraud

Theft and fraud are also possible with digital banking as much as it is possible on other platforms. For instance, there have been reports of people who suddenly couldn’t find their funds in their accounts, unknown to them that someone somewhere who has access to their account transferred the funds. Hence, it is advisable to always pay attention to your phone or computer while logged on to digital banking platforms and always log out of your accounts when you are done with your session.

  • Disruptions/Inadequacies in service delivery

Sometimes, disruptions and inadequacies in service delivery can hinder the smooth operation of things in digital banking. For example, the lack of maintenance and optimisation of the web pages and links may constitute bottlenecks in seamless service delivery on the part of digital banks.




Photo credit: Lukas Blazek on Unsplash.com

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