Ask Nigeria - Your Nigerian News Community

728 x 90

House of Reps orders online banking upgrades

House of Reps orders online banking upgrades
Photo by rupixen.com- Ask Nigeria

CBN to request all banks to upgrade and streamline their online banking systems.

Following a series of CBN policies designed to move Nigeria forward towards a cashless economy, which, however, has caused significant hardship for the nation which still relies heavily on cash, the Central Bank of Nigeria (CBN) has therefore been instructed by the Nigerian House of Representatives to demand that all banks upgrade their online banking systems. Hon. Sergius Ose-Ogun, a lawmaker from the state of Edo, made the motion. Lawmakers believed that following the mandate would make it simpler and more streamlined to perform electronic banking transactions.

The House also directed its Committee on Banking and Currency to monitor compliance with the resolutions and give feedback to the chamber with any necessary legislative amendments within four weeks. The currency in circulation in Nigeria has decreased from 3.2 trillion naira in September 2022 to approximately 1 trillion naira at this moment. As a result, Nigerians have been forced to rely on digital platforms for transactions in recent months. Electronic channels such as fintech apps, USSD transactions and bank apps rescued people when physical cash became unavailable.

Nigerians struggle with failed transactions as online transactions surge.

This directive was issued when a number of Nigerians were forced to struggle with unsuccessful transactions as a result of the rapid rise of online transactions, which caused legacy banks to suffer. In his speech in support of the motion to issue the directive, the Honorable Ose-Ogun stated that the inefficiency or difficulty in utilizing internet banking services through the online banking channels of the majority of commercial banks had caused immense hardship, anguish, and problems for Nigerians over the course of the past three months.

A report from The Punch revealed that NIBSS has been experiencing an increased amount of downtime due to the demand caused by the number of transactions. This downtime has reportedly been having an effect on both the outflow and the inflow of transfers, as reported by a source who is familiar with the situation. According to the source, in order for NIBSS to withstand the strain resulting from the CBN’s strategy, it will need to improve the capacity of its operations.

Core Banking Applications allow banks to process banking transactions.

Although this action taken by the House of Representatives may have been motivated by well-meaning motives, it is unclear what the banks should be doing at this point. However, banks run extremely specialized Core Banking Applications (CBA) that allow them to process banking transactions. The integration of customer CBAs and the transition of customer information to new ones can take up to six months, according to an IT person at a prominent legacy bank. And this is sufficient time for customers to encounter downtimes that can cause panic.

According to information provided by the Nigeria Inter-Bank Settlement System Plc (NIBSS), the number of online transactions increased by 70 percent in February when compared to the month of January, while the value of those transactions increased by 7.8 percent. In a press conference on Tuesday, Nigeria’s Central Bank Governor Godwin Emefiele estimates that eNaira transactions have increased in value by 63% this year. He also revealed that the number of e-wallets have increased by 12 times, reaching 13 million.

Precise guidelines and means to deploy in the industry should be provided.

If Nigerian lawmakers seek a policy-driven fast remedy to the digital banking crisis affecting Nigerian banks, they may be dismayed. Legislators need to be aware of the precise industry standards that banks must adhere to if policy, instead of innovation and rivalry, is to push the complexity of digital banking across the nation. However, to attain the appropriate level of dependability, clear guidelines should be provided on the types of technology to deploy and maintain. There might need to be more than the directive to banks to upgrade their banking systems.


Related Link

CBN: Website

The content on AskNigeria.com is given for general information only and does not constitute a professional opinion, and users should seek their own legal/professional advice. There is data available online that lists details, facts, and further information not listed in this post, please complete your own investigation into these matters and reach your own conclusion. AskNigeria.com accepts no responsibility for losses from any person acting or refraining from acting as a result of content contained in this website and/or other websites which may be linked to this website.

Fact-Checking Tool – Snopes.com

21 comments
0 0 votes
Rate This Article
21 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Admin
1
2 months ago

House of Reps orders online banking upgradesCBN to request all banks to upgrade and streamline their online banking systems. – Express your point of view.

Abusi
Member
9
2 months ago

The online banking apps should be upgraded in a way to ensure it is easy for banking processes. There has always been problem of network, I hope the network get better.

Member
8
2 months ago

It’s essential banks upgrade their online banking system to match the congestion of servers and recent demands. The rate of unsuccessful transactions can be frustrating

Member
10
2 months ago

CBN to request all banks to upgrade and streamline their online banking systems. We are watching them with their upgrade and put their network in order

Member
9
2 months ago

This is fantastic news because the regulation would standardise the process and more expeditious to carry out electronic financial operations, which would be beneficial for all of us and this is a tremendous development.

Member
9
2 months ago

We seriously need to work on making online banking stronger and that would be sweet for us and since many Nigerians had their purchases declined due to the rapid growth of internet transactions

Member
8
2 months ago

Online banking is really an easier means of payment, and would be useful in a cashless society. Buh it becomes discouraging and frustrating when there are delayed transfer.

Member
8
2 months ago

The new idea from our house of reps is actually a good thing because it will help eas le the difficulty we have been experiencing while doing online transaction and that will be pf great help to people.

Member
9
2 months ago

It is crazy that It’s possible that Nigerian lawmakers would be disappointed if they look to policy to provide a quick solution to the electronic financial meltdown that’s hitting Nigerian institutions.

Member
8
2 months ago

All bank should upgrade their online system it will do better for the customers we will not be experience network problem when performing transaction

Member
9
2 months ago

The network hassle experienced during the cash scarcity is enough, all banks should upgrade their online banking systems and provide us a better service.

Member
9
2 months ago

This is nice move all bank must upgrade their system their system is lacking and give people issue when doing transaction

Member
8
2 months ago

Banking services in Nigeria is very worst. Government are only forcing cashless policy on us without making other means seamless fir transactions. It’s really frustrating tho.

Member
8
2 months ago

The service issue is very concerning. Atimes you will need to wait for about 48 hours for your transaction to effect. A lot if business transactions have been impacted by the sluggish network.

Member
8
2 months ago

Providing a top notch customer experience should be part of the bank’s priorities. They really need to upgrade there server to be more reliable and efficient.

Member
9
2 months ago

As several Nigerians saw their spending slow down owing to the quick growth of internet transactions, we really need to focus on making internet banking better which would be great for us.

Member
10
2 months ago

The online banking system is very important for the development of country and everything that needed to be done to make it function ultimately should be put in place by the banks because era of carrying cash around should be gone by now.

Member
8
2 months ago

Every bank needs to improve their online banking services and eliminate the network problems we encountered during the recent cash shortage.

Member
9
2 months ago

The failure of the cashless policy could be attributed to the malfunctioning network system of the banking sector. System upgrade is therefore required to perform effectively so that the country can achieve her cashless policy goal.

Member
9
2 months ago

The banking sector were initially underperforming in terms of mobile and online banking to have being able to meetup with the cashless policy. Banking sector need to upgrade their networking system to be able to meetup with this policy.

Member
9
2 months ago

The decision will enhance the security of online banking systems, protect customers against fraudulent activities and curb cybercrime. The digital upgrade is a smart investment that will help the banks to remain relevant and competitive in the industry while improving the country’s financial infrastructure.

Last edited 2 months ago by Iyanu12345ogg