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Banks record N2.3tn electronic transactions

By on November 30, 2015

The banking sector recorded a total value of N2.33tn through electronic transaction platforms within the first six months of this year, statistics obtained from the Central Bank of Nigeria have revealed.

The figure, which was contained in the financial stability report for the first half of this year, however, represents a decrease of N113bn when compared to the N2.446tn recorded via electronic transaction as of December 2014.

The report attributed the decrease in the transaction to the growing awareness of customers of other existing e-payment channels.

A breakdown of the N2.33tn transactions showed that the Automated Teller Machine accounted for the highest figure put at N1.9tn.

This was followed by transaction through the Point of Sale terminal with N200.88bn; mobile money channel, N192.04bn and Internet transaction, N39.81bn.

It said, “Electronic card transactions, other than cash withdrawals at the ATMs, increased in volume and value from 31.22 million and N402.53bn at the end of December 2014 to 37.03 million and N432.73bn at June ending 2015.

“On the other hand, the volume and value of the ATM transactions decreased to 206.61m and N1.9tn in the first half of 2015 from 224.60 million and N2.04tn in the second half of 2014.

“The decreases could be attributed to the growing awareness of customers of other existing e-payment channels.”

The report explained that instant payment options remained attractive to bank customers, adding that transactions recorded under this payment platform increased to N29.96m within the period.

In terms of value, the report said transactions conducted through instant payment platform increased to N12.05tn in the first half of 2015, from N10.78tn in the second half of 2014.

The report attributed the increase in transactions to customer preference for instant settlement.

It showed that the CBN had been able to reduce fraud associated with electronic payment platforms through the enhancement of internal banking control processes.

It said, “During the period under review, the CBN, in its effort to minimise e-payment frauds, directed banks, switches and payments service providers to set up anti-fraud desks to manage electronic payments fraud.

“Also, banks were directed to adopt the two-factor authentication procedure designed to further enhance their internal banking control processes.”

Some of the measures put in place to reduce fraud, according the CBN, are that banks should implement anti-fraud solution on their cards management system, and regular awareness campaigns for cardholders on how to avoid fraud.

A recent report from the Nigerian Banks Settlement Scheme showed that the two POS-related fraud cases recorded in 2013, rose to 166 in 2014, which is a 8,200 per cent increase.

Also during the same period, the number of ATM-related fraud cases reported in 2013 was 147 and the number of incidence recorded in 2014 was 491, representing a 234 per cent increase.

In addition, it stated that mobile banking-related fraud incidents in 2013 were eight while the figure rose to 21 last year.

The Group Managing Director/Chief Executive Officer, Access Bank Plc, Mr. Herbert Wigwe, was reported to have called for a harmonised fraud-fighting approach among financial institutions in the country.

According to him, the industry invests over 100 million dollars yearly in the fight against fraud through the deployment of a robust technology infrastructure designed to detect fraudulent activity.

He stressed that globally, the impact of financial fraud was massive, which amounts to lose in billions of dollars and impact on millions of victims.

[Punch]