Electronic payment systems eroding significance of physical locations of banks—Emefiele
The Governor of Central Bank of Nigeria (CBN), Dr. Godwin Emefiele has agreed that in no distant time, physical locations of financial institutions may become mere buildings where little or no financial transaction is done.
Speaking recently during the Nigeria Electronic Fraud Forum (NeFF) meeting to review the 2015 Cybercrime Act in Abuja, CBN said “There is no gainsaying the fact that the importance of technology to all human endeavours in general and financial services industry in particular, cannot be over emphasised. The use of Information and Communication Technology (ICT) has revolutionised the way financial services are created, offered, and delivered. We have all witnessed how such developments in electronic payment such as the ATM, POS, Mobile Money, Internet Payment, etc. have continuously eroded the significance of physical locations for financial institutions.”
On the review of the Cybercrime Act, he said the review of the Cybercrime Act has became imperative more than before, as a result of the resurgence to new trends in cyber attacks, and the introduction of new payment instruments, which are yet to be recognised as legal tenders.
He based his support on the fact that the greater the use of the Internet and electronic channels, the more the challenges “in the manner of exposures and vulnerabilities.”“It is inescapable therefore that firm and appropriate legal frameworks must be put in place, supported with sound and effective law enforcement, and enhanced technical and institutional capabilities to effectively protect these networks, and secure the systems and infrastructure from all forms of cybercrimes.”
Continuing, he averred that “The global financial services industry is further challenged by the advent and wide acceptance of virtual and crypto currencies such as Bitcoin, based on the Blockchain Technology; Financial Technology (Fintech); and the development of artificial intelligence and robotics”.
He was however quick to note that “there are no alternatives to the wholesome adoption of technology by the industry; to ensure that the technology and processes adopted remain safe, secure and functional at all times”.
A breakdown of the payment channels through which the fraud were perpetrated indicated that the highest volume of N511.1 million was across the counter; N464.5 million through ATMs; N320.6 million through internet banking; and N253.3 million through point of sales (POS).
Others were N235.1 million through mobile payment; N132.2 million through e-Commerce; N 4.5 million through cheques; and N10.1 million through kiosks with the rest constituting N190.9million.
