The headline screams Bank Halts Online Transactions After Money Stolen From 20,000 Accounts  On hearing of this report, what came to my mind is the new bank that just debuted in Lagos, Nigeria – a totally online bank. If it can happen to an established organization in a stable environment like Tesco Bank, it can happen to a nascent Nigerian bank making history with its branchless modus operandi. Read about the “wonder” bank here. Extract:

Our Services Will Be Available To Our Customers 24 Hours Daily, Seven Days A Week And From Anywhere In The World Where There Is A Good Internet Service. Even Our Data Centre Is Outsourced, This Way We Will Not Have The Overbearing Requirement To Put On The Generator At Our Locations

7ffdb4cd-230d-4c81-ae20-a9df9fa05003.jpgNo teller to fill, no branches, no cashiers. Self service Banking Kiosks for almost all services. A complete (over) reliance on the internet to carry on the business of banking in an infrastructure challenged environment like Nigeria. I asked myself, what happens if there is a major breach (it happens to the most secure IT infrastructure setups like the time when Denial-of-service  Shut Down Major Websites Across The Internet for hours).What about ransomeware situations?

Ransomware Is Computer Malware That Installs Covertly On A Victim’s Computer, Executes A Cryptovirology Attack That Adversely Affects It, And Demands A Ransom Payment To Decrypt It Or Not Publish It. Advanced Malware Encrypts The Victim’s Files, Making Them Inaccessible, And Demands A Ransom Payment To Decrypt Them.

The other day I went into a new generation bank to lodge some cash into somebody’s account, I was asking for a deposit teller, but was told there is no need for that anymore. I was further informed that they would soon go totally paperless.The fear here is, despite the numerous benefits of going totally paperless, can we trust a financial organization (a bank) to have everything resident in the cloud, especially in a place in Nigeria?


The Emergence Of About £3.7 Billion In Losses At French Bank Societe Generale Makes It One Of The Biggest Corporate Banking Frauds Of All Time.

Yes, news like Hackers Steal £650 Million In World’s Biggest Bank Raid is enough reason to apply serious caution,and give serious thinking to automated stealing while thinking Extreme Banking Automation.  There are of course successful online banks in other parts of the world, but in a clime where even the biggest banks in Nigeria would occasionally tell you The Server Is Down, how would an Online Only Bank cope when they have internet connectivity problems? What would happen to customers if they need to do an urgent transaction, but lack internet connectivity for whatever reason, and there are no physical branches?

Would you feel totally safe banking with a branchless bank in a situation where many online transactions fail to complete even in the most technologically innovative banks?

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