Interbank transactions have gotten faster in Nigeria due to the launch of the NIBSS Instant Payment (NIP) scheme in 2011. The NIBSS Instant Payment Scheme is an infrastructure that many experts have praised as being one of the best in the world.
It is rather unfortunate that this speed of execution means that fraudsters have been able to execute with more speed. Nigeria has lost $13 billion to cybercrime in the last 10 years, and in the last nine months of 2020, it has lost $12 million to electronic fraud.
Nigeria’s banking space is one of the most important sectors, as these companies are given the task of providing essential services to several people. A growing trend has been observed, interestingly, of how banks are moving from physical branches to having an online presence.
It is however not clear how much Nigerian consumer behavior has taken on this trend, investors are staking their bets that these companies will usher in the future of banking sectors.
With various hooks like micro-lending, efficient customer lending, free transfers, etc, Nigerian banks plan to capture segments of the market that have undergone relative neglect by traditional banks. Although, fraud is still the bone of contention between both traditional banks and digital banks. The newly launched Stellas digital bank aims to protect a major loophole.
An executive with extensive experience in the field of investment banking space, led by Bukola Solomon, Stellas microfinance bank started in 2017 to provide convenient access to financial services. It soon became one of the leading financial services providers in Nigeria.
“We have seen a lot of instances where people need to make transactions but they want it to be private and confidential. With our Ghost Mode feature, you can execute confidential transactions, it also serves as a security feature. Transactions can be encrypted such that, even if anybody can gain access to your phone or that of the recipient, your details are still secure”, Solomon said.
Stellas plan to protect its users’ identities when they make transactions, to guard against identity theft, and ensure that there is privacy and security.
$219 million was lost to identity theft in 2020, this usually stems from different forms like social media activities, credit cards, or emails. Solomon explained that transferring money to a stranger you bought things from could be a potential loophole for identity theft.
Bukola also said that all transactions are fully covered by the National Deposit Insurance Commission (NDIC) and will comply with anti-money laundering and anti-fraud regulations.
Solomon spoke about the Ghost Mode feature, he said the company has integrated a budgeting feature that will help users create better economic plans for themselves.
“We have 10,000 users already and we hope that it reaches 200,000 in the first month of its launch”, Solomon explained.
It is very likely that Stellas would be giving its digital banking services to its already existing customers, but would be refreshing to see how it will hit 200,000 users in one month.
Nigeria’s digital banking space, graced by the likes of Kuda, Fairmoney, Sparkle, and Carbon, is set to have a very exciting look.
Stellas Digital Bank Launches ‘Ghost Mode’ to Fix Major Fintech Fraud Loophole in Nigeria
