Internet Banking In Nigeria – How It all Works

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Internet banking, also known as online banking, e-banking or virtual banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website.

What is Internet Banking ?

The world (and money) is increasingly becoming electronic. We still use cash for small daily purchases, but internet banking has evolved and is becoming more popular.

Internet banking used to be limited to banks that operated exclusively online, but now, even banks that operate offline now offer services online.

In this article you’ll come to know:

  • What exactly is internet banking
  • How it works and how to register for internet banking (50 secs video)
  • Benefits of internet/mobile banking
  • Few tips to ensure complete security of your account while using internet banking

What exactly is Internet Banking?

Internet banking, also known as online banking, e-banking or virtual banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution’s website.

The online banking system will typically connect to or be part of the core banking system operated by a bank and is in contrast to branch banking which was the traditional way customers accessed banking services.

How Does Internet Banking Work?

Today, advancement of mobile technologies has provided an opportunity for financial service providers in Nigeria to serve their customers much better through internet banking.

But how does it work?

To bank online, you’ll need to use your computer or an application (app) on your mobile device. Getting started is easy and once you’re set up with a username or login ID and password, everything gets easier.

Watch this 80 seconds video

Benefits of Internet Banking

Personally, I can’t remember what life was like without online banking. There are several benefits which make it totally worth it for me, including:

24-hour Access to Your Account

You can get the account information you need whenever you need it in the privacy of your own home. Better yet, if you travel a lot like I do, you can access your account anytime, anywhere.

Real-Time Information

You’ll stay up-to-date on the status of your account, including your current balance, pending items, most recent transactions. You can also transfer money between accounts and download monthly statements etc.

Help Prevent or Minimize Fraud

With online banking, you can check your account regularly and notify your bank immediately when you see a transaction that isn’t familiar to you.

Automatic Savings Plan

You can make account transfers any time you want. Many banks will also allow you to set up an automatic savings plan to transfer money from your checking account to your savings account each month.

2 Methods of Making Your Online Banking Even More Secure

Image source: TSB Bank-TFA Security Diagram
Image source: TSB Bank-TFA Security Diagram

Few tips to ensure complete security of your account 

1) Never disclose your password to others…

2) Password should be random… not something which can be easily guessed by others, like your date of birth etc…

3) Change your password regularly…

4) Do not write your password on pieces of paper, which anybody can lay their hands on…

5) While logging in, use virtual keyboard option…this is an option where there is image of keyboard on your computer screen & you need to press appropriate keys on that virtual keyboard using your mouse.

The order of characters in the virtual keyboard changes every time…this is to eliminate the risk of a hacker accessing your system remotely, recording your keyboard strokes & guessing your password.

6) Once you have finished your task, log-out properly from your account…if you do not, anybody who uses your system or phone after you can perform unauthorized transactions.

Many people are afraid to use online banking simply because they are not familiar with it, but if the necessary precautions are taken it is safe to use.

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