Mobile Phone Banking In Nigeria: Benefits, Problems and Prospects

The internet and other electronic media have had a positive impact on the lives of individuals and businesses all over the world. This study investigated the extent of the adoption and usage of the mobile phone banking services among banking customers in Nigeria and the associated problems. Mobile phones are now ubiquitous and a standard aspect of daily life for a large percentage of the world population. In addition, innovations in mobile finances offer the potential to change the way customers conduct financial transactions. Yet many banking customers all over the world remain sceptical about the benefits of mobile financial services and the levels of security provided with these services. Thus the aim of this study was to understand the levels of usage and nonusage of these financial services by customers within Nigeria. In the course of the research, ten out of twenty one banks were selected in Nigeria. The stakeholders interviewed included bank staff, customers and students from higher education institutions. Study data was gathered over a two month period using an unstructured set of interview questions and data analysis was through thematic evidences arising from the data analysed. Internet banking services were first introduced into the Nigerian financial system in 2001 and other electronic banking services such as the ATM and phone banking followed thereafter. The findings of this study however, discovered that phone banking was more established than internet banking and ATM services, but ATM services had a wider reach. In summary, the overriding factors affecting this situation included the cost and maintenance involved, education of customers, poverty and infrastructure availability. Recommendations are therefore awareness creation of the services and associated business environment, security improvement of the services and tough government regulations for general electronic banking services in the Nigerian context.