By Mary John
At first, I assumed it was just the normal network issues I had been experiencing with the USSD code. It wasn’t until I got to the ATM gallery to make a withdrawal that I realized that my account had been frozen.
It was a Saturday evening, hence, there was no chance of meeting any bankers or customer service providers inside the bank.
Grudgingly, I had to return to the hostel empty-handed and disappointed.
Frozen account notification on an ATM
Image credit: The Unijos Echo
On Monday morning, I called the bank before class and had to wait about 45 minutes before I could be attended to.
Less than 5 minutes after taking my seat at the customer service desk, I was greeted with the gist, “We froze your account because the last transaction seemed unusual based on your usual activity”.
I was further instructed to go and get an electricity bill teller or any other valid form of identification I had before I could return to upgrade the account.
I explained to the official seated behind the desk that I was a student living in the hostel. Electricity bills are not paid individually but collectively with other hostel dues, making it nearly impossible to obtain a teller or receipt. However, his response indicated that unless I could provide the requested documentation, my account would remain frozen and inaccessible.
Some hours later, I returned with a digital copy of my family’s electricity bill and was asked to either print it out or send it to their email for documentation. Subsequently, I filled out a form and paid the necessary charges. It wasn’t until Tuesday morning that I finally completed the entire process at the bank.
This is just a summary of the ordeal I endured upon my return to the University of Jos this semester. My interactions with other students have revealed that I am not the only victim of such a bitter experience with the Nigerian traditional banking system.
In my recent interviews with students on campus, I identified three distinct groups with diverse perspectives on the banking industry and its optimal payment systems.
The initial category comprises individuals who share a collective dissatisfaction with traditional banks, having developed a dislike for the services offered.
A case in point is Miracle, a 300-level Music department student, whose trust in Guaranteed Trust Bank waned after they deducted his final balance in the guise of maintenance charges.
Another dissatisfied student was Dominic Nanjem, a micro-business owner and a 200-level student in the Department of Building.
He encountered severe issues with mobile banking services from Access Bank during the national cash scarcity deadlock in late 2022.
Dominic expressed frustration over persistent connection problems, noting that payment delays often exceeded half an hour and sometimes even longer, jeopardizing both his funds and client relationships.
People like Dominic after this unfortunate encounter, quickly embraced a faster and more efficient path, along with a few others. They represent the next group I discovered.
This bunch effectively uses fintech services and neobanks for operations where traditional banks have fallen short.
Popular fintech platforms in Nigeria
Image credit: The Unijos Echo
Victory Lewis, a 100-level student in the Department of Science and Technology Education, expressed great delight in using the tools and platforms provided by FinTech.
From cryptocurrency to neobanking, he opined that fintech is faster and more reliable for quick payments or withdrawals, as well as savings, without the fear of limitations and extravagant charges.
Another respondent, Cyril, a recent graduate of the University of Jos, declared that the technological revolution is on a fast track, and fintech has come to stay.
However, reservations remain over the trustworthiness of these fintech services.
Blessing, a 200-level student of the Department of Marketing, said, ‘I am not convinced by the whole idea of online banking or payments. I prefer traditional banks with branches that I can always visit. Fintech is very scary to me because there are a lot of funny characters in Nigeria. They can just decide to wake up one night and decide to close up the business without consulting or settling their customers”.
“Fintech has demonstrated greater efficiency compared to traditional banks. However, in this country, it’s not uncommon for companies like these to fold up, leaving customers stranded midway. So, I am cautious not to invest a significant amount that could potentially crash. Nonetheless, I would still opt for fintech over conventional banking any day,” chimed in Dominic on the subject.
Amid the clash of opinions in categories one and two, the third category comprises students who remain loyal to traditional banks and prefer less digital means of transacting.
They do not possess Neobank accounts or utilize their bank’s mobile applications for transactions. Instead, they rely predominantly on physical cash, and USSD codes, and occasionally engage with Point of Sale (POS) agents.
These individuals find that one banking solution suffices for all their needs.
Harmonizing Tradition and Digital Innovation in Banking
As the community continues to evolve and the traditional ways of doing things slowly dissolve into the background of history, significant improvements and adjustments will be necessary for both conventional and modern digital banking industries.
The traditional methods must yield space to the contemporary, while the modern approaches may need to incorporate elements of the conventional style.
This harmonious blend aims to promote productivity and inclusivity, moving us closer to a cashless society for streamlined financial transactions and a more accessible future.
As we look forward to this future, share in the comments which financial opinion category you belong to.
