Facebook, WhatsApp Banking, Others Gaining Popularity

• Facebook, WhatsApp Banking, Others Gaining Popularity

More bank customers are adopting different social media banking channels being introduced by banks for their transactions.

According to a report by the Nigeria Insurance Deposit Corporation, titled ‘Digital: A new way of banking and the associated challenges’, banks and regulators are also seeing the need to ensure the safety of their mechanisms and continuous patronage of their innovations.

The NDIC said, “Social media has become popular in recent times and as people throng into it for gossip, chit chat and general socialising, the banks see it as a banking tool. Now, we have Facebook banking, WhatsApp banking, USSD banking and SMS banking, among others.

“Near Field Communication entails technologically making it easy for two electronic devices to communicate when they are brought within close proximity with each other. For instance, instead of using card on a Point of Sale terminal; a customer simply waves a preferred payment delivery device (could be a phone) across an NFC reader enabled PoS to authorise transactions.”

One of the possible challenges with social media banking and other electronic means, according to the report, is managing risks and regulatory compliance.

It said, “Digitisation is fraught with risks, which banks must manage by protecting themselves from cyber-attacks, combating financial fraud and all forms of money laundering.”

The corporation said banks must also devote resources on being compliant, and on building systems and processes to keep up with requirements and increasing regulations.

It added, “To the traditional customers, mature citizens or bank customers that are ‘technologically challenged’, digital can be a nightmare because they feel that they are at the mercy of a bewildering maze of computer servers, gadgets, bots, jargons, channels.

“Imagine engaging a bank’s contact centre and talking to a chatbot that does not understand why you are worked up and is consistent in giving you programmed responses.”