Diamond Bank Makes Case for Mobile, Internet Banking

Emeka Onwuka, GMD/CEO, Diamond Bank Plc, has made a strong case for mobile and internet banking, which he identifies as the next logical step in e-banking beyond card issuance and PoS devices.
At this year’s Card Expo conference in Lagos, he said that with 12 million internet users in Nigeria, many could enjoy the huge convenience that online banking can offer. This, he also said, can help the banks to improve their service to clients as well as offer other channels that are cost-effective.
“The cost of servicing 1 million clients online is a fraction of the cost of servicing 1 million clients via the branch and ATM networks, and adding another million clients to the website has little impact on total cost,” he said.
“We have the highest number of mobile phone lines in Africa, and the healthy competition among the network operating here means that the coverage available for voice and data services is increasing steadily.”
“In terms of potential for the e-banking Industry, mobile banking will play a growing role in how we interact with our clients in the future,” Onwuka noted.
But he seemed to share the view that banks’ merely growing their ATM network and issuing debit cards is not necessarily e-banking. According to him, they have only made it easier for their clients to access cash, and thereby take it out of the banking sector.
He lauded the CBN directive to all banks to issue chip and pin cards owing to its level of security, but pointed out that there is a lot of work to be done both locally and internationally, to change the view that cards issued by Nigerian banks are usually used fraudulently, or will lead to losses for merchants and cardholders if used online.
“To ensure credibility of our system, it is our responsibility to ensure that our system is secure in line with international standards. It is important to educate our clients continuously about the risks of online fraud and the necessity of keeping their personal details secure,” he said.
The Diamond Bank boss stressed that the e-banking sector will reduce fraud and corruption in Nigeria tremendously, as every transaction becomes visible and easy to trace. He also showed optimism that e-payments would take on increasing importance as bank customers embrace card usage, internet and mobile banking.