For years, Nigeria’s rush towards cash-less economy was greeted with mixed feelings of approval and rejection. But the coronavirus pandemic has made the use of alternative banking channels inevitable, writes COLLINS NWEZE.
The week of economic resumption after the five-week lockdown in Lagos was an eyesore for many bank customers. Even banks that have for decades bragged about their quality customer services were overwhelmed with the problem.
There were huge crowds in many of their branches, which at first, the banks were unable to explain.
But later on, it turned out that many of the customers were those that never took e-payment channels like Automated Teller Machines (ATM), Point of Sale (PoS), e-wallets, internet banking, among others, seriously.
Obviously, cash-less banking has faced several criticisms since its debut eight years ago mainly because of poor quality of service, double debits, excess cashiers to loss of funds to fraudsters, with e-payment users having sad stories to tell.
But the coronavirus (COVID-19) pandemic, which has caused over 200 death in Nigeria and infected over 7,839 people, has provided opportunity for those that abandoned cash-less banking to return.
Hence, the industry has witnessed widespread use of the e-payment channels -ATMs, PoS’ terminals, web payment, online transfers and even mobile phones for transactions. These channels are the easiest way to transact without physical contact, which is the fastest route to spread the virus.
But there are still those that have refused to embrace the platforms and had to bore the inconveniences that followed during and after the lockdown.
For instance, many commercial banks, which opened after the lockdown adopted new strategies to reduce the large crowds at their branches, which were opened in phases. Many banks had sent messages to their customers, informing them about the branches that would be in operation, daily after the lockdown was relaxed.
In many of the banks’ branches, canopies and chairs were set up outside the bank’s premises for customers to sit while waiting to be attended to. In many others, the customers who were impatient ran riot, some threatening to close their accounts, if they were not allowed into the banking hall.
At GTBank, FirstBank, Access Bank, Union Bank, and Keystone Bank, among others, there were large customer presence in the branches, which the banks said they were addressing.
In emailed notice to its customers, GTBank said it would for now, be alternating the opening of its branches weekly. It said customers would be told the branches that would serve them. Another source at GTBank said the architecture of its branches was built in a way that there are no fences to stop people from entering.
He said people could easily walk into the branches to enable them gain entrance into the banking hall.
He said the bank has continually asked its customers to use e-payment channels given that the bank has invested heavily in digitisation of its operations.
He said many of the customers were there to make cash withdrawals, and that they were in a hurry to be attend to.
The source said the bank has been reopening many of its branches, and had acted to ensure that if any branch had a case of COVID-19, it could easily move the customers to a nearly branch.
“We cannot expose all our branches at once to the customers. In case there is a COVID-19 problem in any of the branches, we can close it down and move the customers to the next branch. Gradual reopening of our branches is strategic on the part of the bank,” the source said.
In emailed note to customers, Access Bank Plc said 2020 has redefined how people live and do business amid the COVID-19 pandemic and that utmost safety is the new normal.
“Fortunately, with the improvements on our mobile, internet banking, USSD (*901#) and PrimusPlus, most of your everyday financial transactions can safely be completed from the comfort of your home using your computer or phone,” it said.
The bank said it has put all necessary measures and hygiene procedures in place to ensure your safety and that of our staff while transacting at our branches.
“As the government relaxes the restriction on movement, please remember to stay masked-up, wash your hands often and continue to adhere to health and safety guidelines as mandated by health authorities. We reiterate our commitment to providing you with the highest level of service excellence always,” it said.
An insider source within the bank said most of the customers that trooped to the branches did not have ATM cards and needed to get one having realised how badly they needed it in the COVID-19 era.
The source said the bank also realised the need to open more branches, and has got over 397 branches opened since the day the lockdown was relaxed.
Banks have continued to advise their customers to use alternative digital channels for their transactions.
Ecobank Nigeria, FirstBank, Unity Bank, Wema Bank and Access Bank, among others, have reiterated the gains of going cash-less.
For instance, customers of Ecobank were urged to utilise its digital self-service solutions, including Ecobank Mobile App, Ecobank Online, EcobankPay, Ecobank OmniPlus, OmniLite and the RapidTransfer App without having to visit branches. This is as part of its efforts to ensure social distancing which will help curtail the spread of COVID-19.
According to the bank, customers can “Bank from anywhere” by utilising digital solutions to easily access their bank accounts, make payments, transfer funds, process salaries, and carry out other ancillary banking transactions from the comfort of their homes and offices without visiting branches.
It advised that its branches remain open and available to customers who choose to visit to carry out their transactions. It emphasised that its branches are equipped with all prescribed preventative measures.
Also, the bank noted that as part of its self-service options, customers could create virtual cards for eCommerce and other online transactions on the Ecobank Mobile when required. It noted that Ecobank also provides online and digital product assistance through its Chatbot, Rafiki on Ecobank Online or Mobile, and through 24/7 Contact Centres across the group.
The bank reiterated that “standard measures have been put in place at the branches across the group to help curtail the spread.
These include provision of temperature checks at all entry points to screen employees, customers and visitors; installation of hand sanitisers; equipping customer-facing staff with emergency response plan; encouraging social distancing, especially from anyone who is coughing or sneezing; educating branch staff on international best practices recommended by the Federal Ministry of Health and the World Health Organisation (WHO) and actively updating customers and employees on the COVID-19.
Group Chief Executive Officer, Ecobank Transnational Incorporated (ETI), Ade Ayeyemi, said: “This is an unusual, extraordinary and difficult period in time. At Ecobank, we do understand that COVID-19 is impacting a number of people and causing others serious concern and anxiety.
We will continue to stay abreast of the situation to adapt to changing developments for the good health and well-being of all our customers, employees and communities. Together, let’s keep well and safe, following the instructions given to us by the world health experts for our better health.”
Cash-less banking journey
And so, for the past eight years since the exercise kicked off in 2012, first in Lagos and later across the country, cashless banking is gradually becoming a lifestyle with those that failed to embrace the scheme learning the hard way.
Take for instance Michael Oliseh, a 42-year-old entrepreneur, who spends a part of his business time in banking halls making payments to his suppliers of goods.
During one of such visits to a bank in Central Lagos, a cashier who has been monitoring him for years, including his frequent visits to the banking hall, decided to tell him about e-payments.
“You don’t need to be physically here to pay your suppliers. You can do it at home, or even in your shops or through mobile phone,” the cashier told Oliseh.
That was the turning point for the businessman. For the past three years after that encounter, Oliseh has never visited the banking hall. His android phone is now his bank.
He is one of the millions of Nigerians that have been captured by the cash-less banking fever.
Even market women are not left behind. It is now a common experience to see a road side mechanics, road side traders, food vendors (Mama put), tailors, bricklayers and even beggars telling people, ‘You can transfer to me’.
Many people who previously dodged payment for services in the pretext that ‘I don’t have cash on me’ would have to look for another lie to tell their service providers. The question is: If you don’t have cash with you, what about your phone?
The statistics still low
According to NIBSS data, Nigeria has 37.4 million Bank Verification Number (BVN) enrolled customers but total active BVN across all banks is 29.4 million. Also, of the 120.9 million bank accounts in the country, only 74 million are active as at January, laast year.
The NIBSS data showed that the banks did N1.5 trillion worth of transactions on 56,102 ATMs between January and March, this year. These were done in 203 million deals.Also, N107.6 billion were transacted through web payments and N810.1 billion through mobile money.
This explains that although Nigeria is racing speedily on the e-payment track, the statistics is still low when compared with what is obtainable across the world.
For instance, the cashless society is fully in action in Sweden. By one estimate, only one per cent of the Swedish economy operates on bills and coins. The New York Times says only about one in 10 Swedes paid for anything in cash last year.
CBN’s position
The CBN has admitted that a lot more must be done in the implementation of the cash-
