The acute shortage of cash circulation in the Nigerian economy has led to a surge in the use of electronic payment channels. The team leader of the marketers, Mr. Akinwale at Sonora Capital and Investment, Nigeria’s leading financial and investment company, has advised financial institutions to strengthen their e-payment platforms.
While speaking on the impact of the cash crunch on the Nigerian banking system, he observed the inadequacy of the e-payment channels to withstand the deluge of transactions orchestrated by the surge in the use of such channels for payment is causing many failed and unsuccessful transactions.
He stressed that financial institutions must make significant investments in their e-payment systems in order to both meet client demand and deliver dependable services across all platforms. In order to ensure that clients feel secure when using online banking services or making electronic payments, they should also concentrate on enhancing security measures like two-factor authentication and encryption technologies. Banks must also make sure that their customer care representatives are properly trained so that any problems can be resolved swiftly if they arise during a transaction; this may involve providing 24/7 helplines through phone or email contact points wherever available.
He added that the congestion and resultant system downtime are negatively affecting the commercial activities of merchants as transactions have become slow, delayed, and sometimes incomplete due to the fact that the banks were never ready for the level of surge they are currently experiencing.
Akinwale said, “The rising demand on the digital channels of banks calls for increased investment in reliable payment systems that speedily deliver on transactions.”
“To alleviate the congestion on payment channels, banks should carry out an audit of payment channels to identify gaps and loopholes in the system with a view to phased resolution.” This first step will ensure that banks raise the standards of the experiences they provide to customers and ensure that customers remain at the center of their business models.
He urged banks to consider upgrading their server, network, and hardware infrastructure to handle peak-time operations, adding that this move will ensure that all electronic payment channels can process transactions swiftly and efficiently.
Akinwale advised financial institutions to enhance their security protocols to ensure that all electronic payment channels are secure, protect customer data, and prevent fraud.
According to him, there may also be a need for financial institutions to expand their existing payment channels in order to accommodate more transactions.
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