BANKING

Pros And Cons Of Internet Banking

Published

1 year ago

Pros And Cons Of Internet Banking

Internet banking is a technology that allows consumers to conduct financial transactions with the bank and transfer monies to other accounts using an internet connection from home or any different location, at any time, including after banking hours: Pros And Cons Of Internet Banking.

Data from the Nigeria Interbank Settlement System (NIBSS) showed that between January and July of 2022, electronic transactions totaling N204.5 trillion were carried out in Nigeria through the NIBSS rapid payment platform (NIP). The NIP volume increased to 2.7 billion in seven months, representing a percent rise over the 1.9 billion registered during the same per the period the previous year.

Through their numerous channels, including mobile apps, bank branches, internet banking, supplemental service data (USSD), point of sale (PoS), and ATMs, Nigerian banks have exposed NIP to their clients over the years.

The bank account holder accesses the bank’s portal with their unique customer id and password and performs actions such as deposits, fund transfers, balance checking, and other procedures. Customers can use internet banking to conduct financial transactions without the intervention of bank personnel. Customers access the internet banking site via a steady internet connection, log in with their customer id and password, and then complete the tasks prescribed by internet banking.

Pros And Cons Of Internet Banking

With internet banking, various banking tasks can be carried out by the account holder by connecting to the bank’s internet banking portal using any acceptable device with a secure internet connection. A customer can check the amount of his account, download earlier statements, request a chequebook, and—most importantly—transfer funds from one account to another as needed. When ordering meals from restaurants or other businesses online, it also permits payment.

The portal verifies the user’s information after they login using their customer id and password, and if it matches, access is granted for additional processing and transactions. From the available options, the user can choose the suitable activity, and the portal supports electronic fund transfers between bank accounts. The entire process only takes a few minutes, saving the customer and the banking staff a great deal of time and effort.

Online banks don’t have physical premises, and you can manage your bank account information using a computer or mobile device. Online banking services are available to customers who can use them to carry out various financial transactions, such as electronic bill payments, check deposits, and money transfers.

While online banks tend to focus more on mobile access, customers can frequently see their account statements (or e-statements) online through traditional banks and credit unions with physical locations. A computer or mobile device can access your account whenever you want, but you won’t interact with a banker. Today, most commercial banks in Nigeria provide internet banking services to capture a broader customer base of the Nigerian market.

In the preceding, we will discuss the pros and cons of internet banking as it affects people’s banking experience.

Pros Of Internet Banking

Convenience
Customers can conduct financial transactions via internet banking at their convenience and without visiting the bank physically. The owner of a bank account can use any of the available banking services online from any convenient place and on their terms, including outside of regular business hours. Certain financial operations can be completed by customers via internet banking, saving them time and travel to the bank.
Higher Rates
Online banks frequently have higher interest rates than traditional banks. Because they do not have to spend money on maintaining physical locations, internet banks can offer the best interest rates on checking and savings accounts.
For example, the best online savings accounts offer APYs of around 1.50%. Compared to the national average savings rate of 0.05%, some of the largest commercial banks offer savings accounts with only 0.01% APY. This disparity can quickly develop when an account balance is significant. The vast majority of internet banks now provide certificates of deposits (CDs), many of which have no early withdrawal penalty.
Lower Fees
Another advantage of not worrying about branch maintenance is that online banks frequently charge minimal or no fees. This suggests that you will be less likely to suffer monthly service costs, overdraft fees, or penalties associated with using a debit card or check as a form of payment, to mention a few. In comparison, physical central banks occasionally impose monthly service fees for accounts, but they may waive them if you meet specific requirements, such as maintaining a necessary minimum balance.
Reduce Bank Workload
Customers can avoid going to the bank by using the services offered by internet banking, which shows the amenities found there. The burden on banks has significantly decreased due to people using financial services online rather than in person. Customers are not required to monitor their balances, deposit checks, or update their passbooks. Thus, internet banking becomes a valuable tool for easing the workload on banks and giving employees freedom.
Instant Transactions
Through internet banking services, customers can make quick money transfers to other accounts that would often take a bank a few days to process if they were using checks. It guarantees the instantaneous transfer of funds to anyone worldwide. Additionally, online banking enables rapid payments to purchase goods and services.
Accessibility
Traditional banking hours are not always convenient, but online banking allows you to access your bank accounts and services whenever you want, from any computer or mobile device and any location with an internet connection. Customer service is frequently accessible via phone seven days a week, around-the-clock.

Cons Of Internet Banking

Transactions Are Less Flexible
Meeting in person allows a banker to learn more about you than just your finances. Visiting a bank branch can be quite helpful for specific transactions and problems. Think about the most basic financial process: making a deposit.
Using its banking app, a direct bank can deposit a check by taking a photo of the cheque’s front and back. On the other side, many online banks make it quite challenging to deposit money.
If this is something you’ll frequently be doing, it is worthwhile to study the bank’s policies. Some direct banks may make international transactions more challenging, if not impossible.
Limited Services
Some online banks may not offer all traditional financial services, such as insurance and brokerage accounts. Traditional banks may offer special perks to loyal customers, such as preferred rates and free financial guidance.
Furthermore, essential services such as notarization and bank signature assurance are unavailable online. Many financial and legal transactions necessitate the usage of these services.
Identity Theft And Security Concerns
Due to the typical installation of new security measures by banks, internet banking platforms and mobile applications should be generally secure. However, neither system is safe, and accounts that have been compromised may have had login information stolen, leading to identity theft.
Therefore, even while you can use mobile or online banking, you should still exercise caution by avoiding unsecured networks, changing passwords frequently, and protecting your login credentials.
Possibility Of Overspending
The ability to check account balances on the spur of the moment could lead to some people exceeding their checking account limits. Unless you carefully verify your chequebook or a record of debit transactions that were not cleared, the account balance may not accurately reflect the exact amount of money you have available. Overdrafts and charges could occur if you don’t keep a tight check on all of your transactions.
Deposit Restrictions
The limitations on daily or monthly mobile deposits may make it difficult for people, especially businesses, to make sizable online deposits. You must travel to a bank to deposit once you have used your allowed amount. Not all check types can be easily read by computer scanning software, which is another factor. For instance, the online deposit system would not accept handwritten business checks that included a black line on the back to make a carbon copy in an account register, necessitating an in-person deposit.

Tech-Related Service Timeout

When using computers or an internet connection, we depend on the system’s dependability and efficiency. Your ability to access accounts online will be hampered if your internet service is delayed or unavailable for an extended period. Similarly, if the bank’s servers collapse or are briefly unavailable due to scheduled site maintenance, you won’t be able to access your banking information online or through a mobile device.

Conclusion

Internet banking is a buzzword in the financial world because it makes transactions fast and seamless. Still, it is important to put the cons of internet banking into reasonable consideration before going for a preferred internet bank of choice. See

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BANKING

Afreximbank Acts as Joint Lead Manager on Ecobank Transnational Incorporated’s USD 400mn Senior Unsecured Note Issuance

Published

2 months ago

Christopher

The proceeds of the note will fund general corporate purposes of the issuer, including refinancing of a USD350 million senior bridge-to-bond loan facility that was jointly coordinated by Afreximbank in March 2024.

African Export-Import Bank (“Afreximbank”) (www.Afreximbank.com) is pleased to announce that it has successfully acted as Joint Lead Manager and Bookrunner on a USD 400 million 10.125% Rule 144a/RegS senior unsecured note issuance by Ecobank Transnational Incorporated (“ETI”) due in October 2029.

The note issuance achieved peak orderbook oversubscription of 2.1x, backed by more than 70 high-quality and diverse investors comprising development finance institutions, asset managers, commercial banks and insurance companies from Africa, the UK, USA, Europe and the Middle East.

Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, commenting on the transaction, said: “We are pleased to have supported Ecobank Transnational Incorporated (“ETI”) in placing the first public Eurobond issuance by any Sub-Saharan African financial institution since 2021, following our bridge financing support earlier in the year. This transaction underscores Afreximbank’s capacity and readiness to structure innovative market access solutions for our pan-African banking partners.”

Afreximbank’s Advisory and Capital Markets (ACMA) department acted as Joint Lead Manager and Bookrunner on the issuance, working alongside international and African partners.

Distributed by APO Group on behalf of Afreximbank.

BANKING

International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

Published

2 months ago

Christopher

International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

These workshops form part of ITFC’s Integrated Trade Solutions (ITS) framework, aligning with the organization’s goal of providing holistic trade financing interventions in OIC member countries.

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group, in partnership with the Central Bank of Nigeria (CBN), successfully concluded a workshop on Non-Interest Banking and Trade Finance in Nigeria. Held from 17th to 19th September 2024 in Abuja, the sessions aimed to enhance capacity and knowledge in Islamic banking principles, trade finance products and services, and how different financial toolkits are applied in Islamic finance from operational and business perspectives.

International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

Nigeria’s Islamic finance industry, valued at US$3.8 billion, is one of the major Shariah compliant industries in Africa. Despite some challenges such as low public awareness and a smaller capital base compared to conventional banks, Islamic finance has been substantially contributing to reduce financial exclusion and improve access to affordable finance in the country. The three-day workshop was designed to bridge prevailing knowledge gaps focusing on key areas such as Sukuk issuance and main non-interest banking products basics.

Delivered under ITFC’s Integrated Trade Solutions framework, the workshop equipped professionals with the skills to promote Islamic finance in Nigeria while also highlighting ITFC’s wide range of trade financing services.

Participants reported a significant boost in understanding Islamic banking and trade finance, and the workshop showcased ITFC’s contributions to economic development through sustainable financial solutions.

Eng. Nasser Al Thakair, ITFC, remarked: “ITFC is committed to supporting Nigeria’s efforts in Islamic finance, tailoring this workshop to address the unique challenges faced. We will continue to provide the expertise and financial backing needed to grow Islamic finance in Nigeria and beyond.”

Over 30 professionals from the Central Bank of Nigeria, non-interest banks, and other financial institutions attended, further advancing Islamic finance in the country.

As Nigeria positions itself as a leading market for Islamic finance in Africa, ITFC remains dedicated to advancing trade finance and supporting the growth of the sector for long-term economic impact.

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).

About the International Islamic Trade and Finance Corporation (ITFC):

The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving the socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided over US$75 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity-building tools, which would enable them to successfully compete in the global market.

FINTECH

Kazang Pay launches card acquiring service in Zambia

Published

2 months ago

Christopher

Kazang (www.Kazang.com), the prepaid value-added services (VAS) and card acquiring business within JSE-listed fintech Lesaka Technologies, has launched its Kazang Pay card acceptance solution for merchants in Zambia. Kazang Pay makes it affordable for merchants to accept card payments on the same Kazang terminal they use to sell prepaid products and services.

Kazang Pay launches card acquiring service in Zambia

The Kazang Pay enabled terminal in Zambia accepts VISA debit and credit cards as well as mobile wallet payments. Payments are settled to the merchant’s Kazang wallet on the same day. It’s as easy as letting the customer tap or insert their bank card and enter their PIN on the secure scramble PIN pad.

Kazang operates around 12,000 VAS terminals in Zambia. The goal is to enable the majority to accept card payments over the next six months. Benefits to merchants include low transaction fees and no monthly terminal rental fee for those that meet a modest monthly transaction threshold as well as the opportunity to grow their business through card acceptance.

Kazang is Zambia’s largest VAS point-of-sale terminal provider, enabling mobile money payments, bank and mobile money cash in and out, bill payments, airtime, Zesco, and many other prepaid services on one platform. The addition of card acceptance makes the platform even more comprehensive for merchants and consumers alike.

The launch of Kazang Pay in Zambia follows the introduction of the solution in South Africa, where around 60,000 small and micro merchants use Kazang Pay to accept card payments. In Zambia, there are around 3.8 million debit, credit and ATM cards in issue and 41,000 point of sale (POS) terminals in place. The value of POS transactions has grown to K 111.4 billion by 2022 from less than K 20 billion in 2018, according to the Bank of Zambia.

Says Leon de Wit, managing director at Kazang Zambia: “Zambia has made enormous strides in terms of financial inclusion, with card usage and penetration growing at a rapid pace. With Kazang Pay, merchants can now easily accept card payments on the same all-in-one terminal they already use for vending of VAS products.

“Card transactions help merchants to grow basket sizes and potentially attract more customers, and at the same time, reduce the risks and costs of handling cash. Moving towards digitalised payments will also enable merchants to track sales, manage cash flow, and create a footprint that could make it easier for them to access loans.”

Ashley Naidoo, director of Kazang Pay in South Africa says: “Our Zambian merchants have eagerly embraced our card acquiring service as a valuable part of our one-stop solution. Following the launch of Kazang Pay in Zambia, we have seen higher VAS sales across our merchant base and much-improved merchant retention and with our card acquiring solution we now appeal to a broader merchant base.”

Distributed by APO Group on behalf of Kazang.

ABOUT KAZANG:
Kazang (www.Kazang.com) is a leading provider of cash and digital solutions to merchants in Southern Africa’s informal economies. Our fintech solutions include a diverse range of value-added services (VAS), card acquiring, secure cash vaults and supplier payments platforms. Operating with a network of approximately 90,000 active devices, we process approximately 2.2 million transactions daily in markets such as South Africa, Namibia, Botswana, and Zambia.

We are dedicated to helping small and medium merchants grow and succeed, through increasing their sales, making their businesses more efficient and reducing their risks with its holistic portfolio of products and services. Kazang is a member of Lesaka Technologies (https://LesakaTech.com).

ABOUT LESAKA TECHNOLOGIES, INC:
The Connect Group and Kazang was acquired by Lesaka Technologies, Inc. in April 2022. Lesaka Technologies, (Lesaka™) is a South African Fintech company that utilizes its proprietary banking and payment technologies to deliver superior financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa. Lesaka’s mission is to drive true financial inclusion for both merchant and consumer markets through offering affordable financial services to previously underserved sectors of the economy. Lesaka offers cash management solutions, growth capital, card acquiring, bill payment technologies and value-added services to retail merchants as well as banking, lending, and insurance solutions to consumers across Southern Africa.

Lesaka has a primary listing on NASDAQ (NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK). Visit www.LesakaTech.com for additional information about Lesaka Technologies (Lesaka ™). $LSK / $LSAK