Internet Banking, Mobile Money, ATMs, Am I Safe?

How well do you know your digital financial products? This is the question most consumers should be asking themselves in today's fast-paced world, where digital financial products and services have become an integral part of their daily lives.

The financial sector encompasses a wide range of digital financial products offered by financial service providers, accessible through digital platforms such as ATMs, mobile apps, and the internet. These include money transfers, bill payments, savings, loans, insurance, and more. However, with the rise of these digital financial services (DFS), it is crucial for consumers to be informed about the benefits, risks, and necessary precautions to ensure safe and secure transactions.

The Bank has a Market Conduct division under the Financial Regulation Department which is enshrined with the mandate to ensure good conduct even when financial institutions, under the CBE’s purview, provide digital products to consumers. The use of these products has significantly transformed the way consumers interact with their finances, making transactions faster, convenient, and more accessible. The adoption of digital financial products offers several advantages for both consumers and service providers.

For consumers, the ability to perform transactions from the comfort of their homes at any time or on the go is a major convenience. This not only saves time but also reduces the need to carry physical cash, which can be cumbersome and risky. Moreover, the use of digital services often comes with lower fees compared to traditional methods. The Central Bank's Legal Notice 62 of 2016, which requires banks to publish their fee schedules on their websites, places of business and in newspapers, ensures transparency that should enable customers to compare the benefits of using digital services against traditional ones.

Accessing these services has been dubbed as an easy process, in that consumers can register for them at a branch, online or through an agent of the financial service provider. They can also become recipients of transactions initiated by others, such as receiving money in an electronic wallet or mobile wallet or they can initiate transactions themselves, such as depositing money into another person's account at an ATM.

Despite the convenience brought about by digital financial products, consumers are warned about the risks that come with these. The Bank emphasises the importance of consumers remaining vigilant at all times when using the products and implement the necessary precautions. These may include knowing your service provider, protecting your PIN, using secure networks and devices as well as being aware of fraud and scams.

As we continue to embrace digital financial products, it is important for consumers to be proactive in understanding the landscape. By being aware of the benefits and risks, and by taking the necessary precautions, consumers can enjoy the full advantages of digital financial services while safeguarding their financial well-being. Remember, knowledge is power, and in the digital age, being an informed consumer is more important than ever.

Here are some of the precautions for consumers:

• Know Your Provider: Research the DFS provider to ensure they are reputable and regulated. Look for reviews, licenses, and any consumer protection measures they offer.
• Data Privacy: Be cautious about the personal information you share online. Ensure that the DFS provider has robust data privacy policies in place to protect your information from unauthorized access.
• Protect Your PIN: Never share your Personal Identification Number (PIN) with anyone. Always cover your hand when entering your PIN to prevent it from being compromised.
• Secure Transactions: Use secure networks and devices for transactions. Avoid public Wi-Fi for financial activities and ensure your device has up-to-date security software.
• Understand the Costs: Be aware of all fees associated with the services you use. Hidden charges can add up and impact your financial well-being.
• Monitor Your Accounts: Regularly review your account statements for any unauthorized transactions. Immediately report any discrepancies to your service provider.
• Beware of Fraud: Fraud activities can include identity theft and credit or debit card fraud. As a consumer you can protect yourself by enabling biometric identification and multi-factor authentication. This type of authentication can be used for your bank website and bank applications (app). Utilize stronger ways of protecting your login credentials.
• Beware of Scams: Be cautious of fraudulent payment notifications and verify transactions by checking your balance or contacting your service provider.
• Avoid Phishing: Type the bank's website directly into your browser to ensure you are on the official site and not a scammer's page.
• Report Unauthorized Transactions: Immediately report any suspicious activity to your service provider and take advantage of digital channels to promptly deactivate lost or stolen cards.
• Educate Yourself: Stay informed about the latest digital financial products and how to use them safely. Do not hesitate to seek clarification from your service provider or financial regulators.
• Agreeing to Terms and Conditions: Be careful and take the time to read through terms and conditions before clicking on the button that allows you to agree to them. This is to ensure that you are aware of the conditions that you are ascribing to and the responsibilities that you bear as a consumer.
• Data protection: Within the terms and conditions, you often agree to the processing of your data, you need to be conscious of how your data will be used and to whom it will be shared.