Why Bank Apps Are Malfunctioning as Report Says Bankers Are Fleeing Nigeria's Worsening Economy
- The malfunctioning of many bank apps in recent times has been blamed on the mass resignation hitting the banking industry
- Recent reports said many tech workers in many banks had fled abroad, which could mean taking customers’ details along
- Customers are panicking that their funds may no longer be safe and contemplating moving the funds and investing something else
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If you have experienced a glitch recently using your bank apps, then you are not alone.
Several people have reported that their bank apps have not responded as before, and the banks have blamed the situation on server problems.
Source: Getty Images
PiggyVest, others suffer glitches
Last week, one of the savings platforms, PiggyVest, went down for more than 24 hours, sending users into a frenzy.
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While PiggyVest is not a conventional bank, it houses billions in savings from users in Nigeria and beyond.
The glitch on PiggyVest, which trended on social media that saw panicking users began mass withdrawals despite the platform assuring them of the safety of their funds.
Another popular bank is reported to have been suffering from technical hitches almost on weekly basis and is said to have lost over 100 tech workers in the last seven months.
A recent report has pinned the faltering banks apps on the mass resignation by tech workers plaguing the financial institution in Nigeria.
Tech workers running abroad leave customers vulnerable
Several tech workers in banks are exiting Nigeria, worsening the brain drain in the country and almost throwing the banking industry into a crisis and increasing training costs for the banks.
Now, there are fears that the fleeing tech workers are fleeing with the financial records and details of depositors, including transaction details and cashflows of individuals and companies.
Analysts express worry as banks embark on recruitment drive
Analysts say the situation is dangerous for depositors as unscrupulous ex-bank workers could take advantage of their knowledge of the internal mechanisms of the banks and unleash financial mayhem on depositors.
A source close to one of the new generation banks told Legit.ng that the bank has lost over 24 tech workers in this year, most of whom work in critical areas in the bank.
He said despite the workers submitting whatever details of customers in their possessions, there is no doubt that they have mastered the internal workings of the bank.
“What you cannot take away from anyone is the knowledge they have acquired. With that knowledge, they can do just anything. So, there is fear in our bank, and maybe many others, that sooner, customers will experience severe problems with their funds,” he said.
Bloomberg reports that the brain in Africa’s biggest economy, which has become known as Japa, has a severe effect on the financial sector.
Banks are already suffering from surging interest rates, higher operating costs and threats of an increase in non-performing loans and are forced to recruit new staffers.
Chidimma Anyanwu, a biochemistry graduate from Imo State University, told Legit.ng that she has received over four interview invitations from four different banks, one of which asked her to apply as a tech worker.
“In my CV, it is clear that I studied biochemistry, but the banks are desperate to employ me and retrain me as a tech worker."
“I am currently conflicted but I will give it a shot,” she said
The bank tech workers fleeing abroad are lured by higher salaries, better fringe benefits, job security and great exit benefits.
Despite depositors’ funds insured by the Nigeria Deposit Insurance Corporation (NDIC), bank customers have expressed worries over the development, with many mulling pulling out their funds and investing them in less risky assets like real estate.
Customers express worry
John Omenka stated he might have to close his accounts across four banks to save his mental health.
“The report worries me. I know how much I have saved in four banks. If anything happens to them, I don’t know how I will react,” Omenka said.
Joy Ogwu, a businesswoman, almost broke down when she heard her bank app suffered glitches and may take hours to resolve.
When I got the message from one of my banks, I almost suffered a stroke. I had been trying to send money to my customers but the transfer kept failing until I got the message,” she said.
So skilled workers are turning to big western economies, where other Nigerians have built successful lives, particularly Canada, the United States and the United Kingdom
These six Nigerian banks may suspend international transactions on Naira cards after First Bank
Legit.ng reported that recently, First Bank of Nigeria stated that its customers would not be able to use its Naira Mastercard, Naira Credit Cards, virtual cards and Visa Prepaid Naira card for international transactions beginning September 30, 2022.
First Bank customers used their naira debit cards to perform international transactions up to N20 dollars every month until the recent announcement.
According to a statement by First Bank, it asked its customers to use its Visa Debit Multicurrency Card, Visa Prepaid dollar Card and Visa Gold Credit Card for international transactions with limits of up to $10,000.
Source: Legit.ng
