Diaspora remittances hit $21b, says KPMG

By IAfrica
In Nigeria
Aug 21st, 2014
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With a yearly growth rate of three per cent over the past five years and $21 billion inflow of personal remittances last year, Nigeria is the fifth largest remittance receiver worldwide in terms of volume, a KPMG report has shown.

The Banking Industry Customer Satisfaction Survey 2014 by the firm obtained by The Nation showed that remittance to Nigeria accounts for 65.6 per cent of total flows into sub-Saharan Africa.

The feat, it said, presents some avenue for banks that may want to tap into the opportunities created by this class of Nigerians who wish to transact banking business using their local bank accounts.

In an online survey of 127 Nigerians resident in 12 countries who maintain local banking relationships, convenience was the overwhelming driver of value.

According to the report, when asked for the most important factor in their banking relationships, 44 per cent of the customers selected the availability of internet banking. In particular, customers identified the ease of use of the internet banking platform as the most important factor followed closely by the quality of customer service.

Seventy-seven per cent of those surveyed transfer money through formal channels – banks (48 per cent) or other money transfer agencies (29 per cent) – compared to 19 per cent who said they send money home through less informal ways – family and friends – travelling home.

Also, on the effectiveness of the contact centre, the ease of complaints resolution was cited as a major area of dissatisfaction.

It also showed that more than 50 per cent of customers who have used their bank’s contact centre have been dissatisfied with the promptness of issues resolution and quality of feedback. It cited one bank’s  response to a customer facing some debit card challenges that the customer should wait until his next visit home, for his query to be resolved.

The increasing frequency and magnitude of cybercrime incidents globally make it apparent that cybercrime is here to stay. The Central Bank of Nigeria’s (CBN) report for the first half of last year noted that there were 2,478 fraud and forgery cases  banks worth over N20 billion. This, it said, represented an eight per cent increase over that of the previous year but a significant increase in value of over 200 per cent from 2012.

In this year’s survey, two per cent of retail customers indicated that they had experienced a fraud  in the last year and while this number appears small today, it may signify the start of a potentially disturbing future trend.

It said a survey by KPMG in the Netherlands showed, 80 per cent of the respondents indicated that cybercrime is no hype and will continue to be a highly challenging topic.

The survey showed that 49 per cent of organisations have experienced some form of cybercrime activity during the past 12 months.

That is not to say the rest have not experienced an attack; they may not have the proper detection measures in place. Among the 49 per cent that have experienced an attack, 10 per cent indicated that they have been attacked more than 100 times within the past year. Inadequate detection procedures may conceal the real number of cybercrime attacks. Only 50 per cent of the respondents were able to detect attacks and only 44 per cent of the organisations felt comfortable that they were able to respond.

It said organisations should ask themselves whether they are aware and capable of handling a cybercrime attack. The survey found that 35 per cent do not agree that their organisation is aware of cybercrime, though the financial sector respondents score significantly lower. This would imply that financial institutions are more aware of cybercrime than other typologies.

Attacks may come by various methods heavily on and correlate with the budgets that have been made available. The damage from cybercrime attacks and budgets allocated to cybercrime defence can be substantial. It said the way in which cybercrime defence budgets are allocated to prevention, detection and response measures should be considered carefully.

Nineten per cent of the organisations in the survey spend more than 1.5 million euros on cybercrime prevention, detection and response per year.

The damage caused shows that not only did financial organisations report almost half of all incidents resulting in damage, they were also the victims with the most incidents in the highest damage bracket.

The survey results revealed that 75 per cent of the over 1.5million euro attacks occur in this sector. “In all, our survey found that financial service organisations are more aware of cybercrime than other organisations (80 per cent),’’ the firm added.

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