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Improving On m-banking Services In Nigeria
By IFEANYI OSUEKE

The Deputy General Manager and Head of e-Banking department of Union Bank Plc, Theodore Amagwu, once made a remarkable statement that attests to the true position of the Nigeria banking sector. Amagwu had said, “The banking industry is becoming more exciting in the sense that we now have a system that is being controlled properly by the authorities.
“Also because technology has taken over, we are seeing situations where banks that will rule the future must align their processes to technology of the day. The summary is that the industry is becoming more exciting”.
These words by the seasoned banker and IT specialist summed up the state of post- consolidation era of the Nigerian banking sector.

Nigerian banks have expanded on many frontiers gaining both national andinternational prominence. The newest achievement is The Bankers Magazine, a subsidiary of Financial Times of London adjudging six Nigerian banks to be among the best 1000 banks globally in terms of capitalization.

Recently, the Managing Director of Intercontinental Bank Plc, Dr. Erasmus Akingbola said that the elevation of Nigerian banks among the 1000 banks in the world is an indication of monumental achievement to come and a pointer to higher goal by the Nigerian financial sector in the global market, having gotten it right through domestic legislation.

At the home front, it has been said that the introduction of IT in banking has not only encouraged the unbanked to bank but has also raised the profit margins and dividends of shareholders phenomenally with a considerable amount left at the coffers of the banks to be ploughed back in form of corporate social responsibility (CSR) to the society that has given it so much.

If truth be told, the banks have done fairly well in this regard as institutions of higher learning get donations in form of computer equipment and a few other training facilities. This is hardly possible in the pre- consolidation era when there was little or no deployment of IT infrastructure in the banking sector. However, this token gesture from the banks not withstanding, it is not yet kudos to the financial institutions because the society deserves a good chunk of the so much it got from them.

As the money sector continued in its massive stride for international dominance, deployment of modern IT tools and banking solutions such as the card payment system which in recent time obviously determines banks' market share and efficiency, mobile banking a fast growing phenomenon in both local and global financial market place should also be fully integrated by Nigerian banks.
The provision of financial services with the help of mobile technology, otherwise known as m-banking in Nigeria has become a rallying point for banks in developing countries, it is a step ahead the card system. M-banking services offer a huge opportunity of transactional services on the move. Such activities include facilities to conduct bank and stock market transactions, to administer account and to access customized information; sms banking services for performing balance check, payment and other

transactional services through mobile device.
Though some of the Nigerian banks have started a semblance of mobile transaction, the frontier needs to be broadened to include all classes and grades of mobile devices handled by the customer. The sophistication and grade of technology enabled m-banking transaction as presently obtained, has militated greatly against mass mobile transaction.

However, Guaranty Trust Bank, GTB, one of the continental leading banks and a major player in the international financial scene must be commended for recording first in sms banking in Nigeria from the transactional base whereby customers are notified through their mobile phone via sms when transactions are conducted in their account.

This singular offering by the robust bank has won for them many admirers and customers just as Glo Mobile (GSM operator) made an in-road into the hearts of many Nigerians for being the first to go per second billing in the interest of Nigerians at a time when their competitors said it was an impracticable task.

GTB has maintained this feet consistently as they keep faith with their notification rule. Recently, I transferred some money into a friend's account in one of the banks (not GTB) though she needed the money urgently but has no way of knowing that the money has been transferred into her account because I did not call to inform her.
When I eventually did after two days, she queried why her bank is yet to deploy sms banking alert.

I am sure that she may consider dropping her bank or opening another account with one of the banks that have such service offering in their bouquet. This in a nutshell, emphasizes the importance of mobile banking. Although mobile alert may

not be proactive in crime detection (an area which bank managers and content developers should consider critically) but it is on time in its update function.

Nigerians are increasingly becoming IT literates with strong penchant to queue into banking technology solutions that enhance efficiency and customer conveniences. The banks should deploy a robust m-banking method that allows users to make payment at physical point of sale.

The global financial sector is quickly transiting from just technology to hi-tech. The Nigerian banking sector should not be complacent with seemingly mobile banking success but strive to join the league of global

financial giants by utilizing all technology novelties that support the new wave of world economic growth controlled by all sorts of mobile banking services such as banking on the move; especially now that the country's mobile phone density is on the upsurge.

A recent study by international reputable research firm, Jupiter, reveals that more than 41.5miilion financial transactions will be carried out by the end of 2011 as the unbanked consumers adopt the technology to access banking services; while about 612 million of mobile phone users will conduct financial transactions with the handset by 2011, generating over $587 billion.

The study further reveals that annual global transaction will soar from 2.7 billion in 2007 to 37 billion by 2011.The study cited the millions of mobile phone users in developing countries who do not have bank account as potential market.

Tom Standage, Business editor of The Economics Magazine opined that m-banking is and will record success story in developing world owing to the huge and untapped market. He pointed out that the new wave of economic development will be powered by m-banking.
According to him, “there are some very interesting things happening in South Africa, Kenya, the Philippines with mobile banking and this is taking the world economic development to the next level”.

The question that bugs the mind is the position of Nigeria in various prognostications by world experts concerning the state of m-banking in the global economy? Will Nigerian banks, government and interested stakeholders rise up to the occasion? If yes, the time to start is now.

The best start is the removal of all hindrances to the growth of mobile banking one of which is the inability to use low ends phone to conduct mobile transactions. This can be corrected by interoperability; bringing in such excluded phones which are considered low quality.

Security of banking application should be given serious considerations for enhancement, as the lack of it leaves customers in fear and skeptism. It is a common knowledge that unlike the net where there are virus check, firewall and security warnings, the phones cannot support such functionalities.

But the integration of some security measures such as encryption of data being transmitted over the air, authentication of bank customers through biometrics features, authentication and enrollment process that connect a specific phone to a specific set of account, a clear financial legal framework drafted to protect and sanction the mobile operators, financial institution(banks) and the switching company will instill confidence in the customers who intend to carry out huge transactions through m-baking process.
These will quicken the growth process.

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eTranzact ToLaunch TwoNew Products

Nigeria's foremost switching and payment processing platform, e-Tranzact, has introduced new products aimed at tackling the challenges besetting all chip-based and non-chip based cards.
Towards this end, the company has concluded plans to publicly launch its innovative eTranzact Automated Teller Machine (ATM) called CardlexCash, even as it tackles electronic scam with eTranzact Strong Authentication (ESA) security solution for both banking institutions and end users.
Valentine Obi, chief executive officer of the company said that the development is in furtherance of it corporate commitment to simplify e-transactions and guarantee

maximum safety for both the banking institutions and their customers.
The ATM CardlexCash for instance, leverages on subscriber's mobile phone, eTranzact platform and ATM processor of over 21 partnering banks to make funds transfer and collection convenient for the numerous unbanked persons in the country and beyond as well as the existing over 40 million mobile phone subscribers.

Obi noted that the company had evolved a new card solution, which does not depend on chip and pin technology. He said that the new card system is so secure that the company is implementing a money-back guarantee to users. “Simply, if anyone can successfully compromise the card, then whatever you may have lost will be paid back to you”, he stated.

He remarked that eTranzact ATM CardlexCash is a product designed for the eTranzact global payment network that provides a solution which allows a transferor to transfer funds from his mobile phone to the mobile phone of the transferee, who then collects the funds at any ATM without the use of cards.

According to Obi, “eTranzact's ATM CardlexCash which has been patented in Nigeria, and in Africa, US, UK and Asia is a revolutionary product which leverages on a subscriber's mobile phone, the eTranzact platform, and ATM processors of partners to make funds transfer and collection convenient for the end users. It proposes a faster and convenient process of money transfer that eliminates going to a bank or using an ATM card.”

Obi said plans have been concluded to make the product available in all its countries of operation including Ghana, Cote d'Ivoire, Zimbabwe, UK and the United States adding that the product, which provides seamless transfer of funds across borders, will require the sender to transfer money using his phone to any cell phone.

The eTranzact chief executive said the other product, ESA came out of numerous research and findings, considering that utilization of static PIN as the singular parameter for electronic transactions has become increasingly fraud-prone and its first fully operational multi-application and multi-channel electronic transaction switching and payment processing platform has come up with a product aimed at tackling the challenges besetting all chip-based and non-chip based cards.

“ESA allows a subscriber to withdraw cash from any ATM through a proxy. This is done by generating a one time pass code (OTPK), to which the cash withdrawal value is tied for a one-off ATM transaction. With the eTranzact ESA, should a customer fall victim of scam or cloned website and give away both user name and password, a third party can never defraud the customer due to lack of the dynamic PIN residual on the mobile phone,” he explained.

Obi added that card cloning and PIN disclosure have equally become apparent threats to card-based transaction, hence the need to leverage the ESA dynamic PIN generation through a process known as two-factor authentication (2FA) to permanently address these threats.

InsuranceTechExpo Ends With Calls On Insurance Industry To Embrace

The inaugural edition of the insurance technology workshop and exhibition tagged InsuranceTechExpo with the theme “Insurance Technology- catalyst for Economic Development” was held recently at the Golden Gate Lagos, with Nigerian IT companies making strong showings in the area of insurance technology over and above some of the bigger global players in the arena.

In his welcome address, the managing partner/CEO of Private Media Mart Limited, organizers of the event, Ejiofor Agada said that the event which is going to be an annual event is meant to constantly showcase to the insurance sector the various technologies, strategies and innovative methods of utilizing the tools of modern technology to maximize and standardize their business processes in order to catch up with global trends. These trends, which are being constantly spear-headed by the likes of CISCO, IBM, 3i Infotech, Oracle and Microsoft on a global scale, but who failed to recognize the prospects of the Nigerian insurance market, still remains the key to 21st Century e-Insurance.

Agada also said that in other developed economies, insurance technology has become as popular if not more popular than other IT consumer markets adding that the trend has not been adequately represented in Nigeria. He pointed out that a large percentage of insurance companies in

Nigeria still depend on manual processes, owing largely to the nonchalant attitudes of the major technology firms allegedly being represented in Nigeria.

“The challenges faced by the insurance sector have quadrupled over a certain period of time and to meet these challenges, there is no better option than for the sector to utilize the tool of modern information technology, he said.”

Dr. Olusanya Oba, who represented the director general, Nigeria Insurance Association (NIA), said that the event wouldn't have come at a better time than this era of information technology expansion adding that it is the only tool that will make the sector to remain a key player in the complex financial services market globally.

In her presentation, managing director of Omatek Computers, Florence Seriki said that she is happy that the insurance sector is beginning to embrace IT like the other financial sectors of the economy, noting that Africa is gearing towards fighting the digital divide in all sectors using the tools of technology.

Managing director of MatrixVtrack Nigeria Limited, a car tracking outfit, Don Okafor, advised the insurance sector to deploy unique tracking devices that will enhance their automobile insurance business services and reduce the premium paid by the insured. He counseled the sector on the need to allow the best products in the area of vehicle tracking to be used by the insured solely on value rather than the unethical practice of insurance companies dictating to vendors on the type and cost of the solution to be deployed.

While commending the organizers of the event, Bartholomew Okrih of Standard Alliance Insurance, said that the event is a welcome development in the sector as the deployment of ICT has been a major challenge to the sector. He also urged the organizers to do more sensitization and create more awareness so that more insurance companies will see the need to attend the event next year.

“It's a privilege that I'm here today and I have added to my knowledge on the use of ICT because it's a trend that if the sector doesn't follow, it cannot go beyond where it is today but I wish more of the insurance MD's and CEO's were here”, he added.

The event also featured a mini exhibition for ICT solution providers. The exhibitors included MatrixVtrack, Wadof software consulting, Amsco Telecoms and Omatek Computers.