USSD: Customers Lament As Banks Remove MTN From Banking Channels

Commercial banks have disconnected MTN customers from banking
channels including the Unstructured Supplementary Service Data and
banking apps.

MTN customers complained on Friday about being unable to
recharge their MTN lines using USSD and other banking channels like
the bank apps.

Customers were also unable to do banking transactions on MTN
lines through USSD.

According to a source, this was not the doing of MTN but the
banks who had refused to give any formal communication prior to the
disconnection.

The source said, “Please note that MTN didn’t cut off customers
and has no hand in this. This is strictly the banks acting on their
own.

“We woke up this morning to see that MTN customers were cut off
from USSD services overnight. This has come as a surprise as there
was no formal communication from the banks to their customers prior
to their taking this action.”

The source disclosed that MTN had reduced the banks’ commission
from an average of 3.5 per cent to 2.5 per cent which predicated
the actions of the banks.

According to the source, the reduction is standard because the
volumes compensate for the reduction, adding that the contract with
convenience channel partners and aggregators through which they
were indirectly connected to the banks allowed this.

The source said, “The banks wrote back to the aggregators to
revert back to the old commission, otherwise, they would block MTN
airtime in all their channels.

“The channels were blocked midnight leaving our customers
stranded. Interesting that the bank Managing Directors met and
quickly took a decision. Subscribers to telecommunications are
being denied services by the banks even when they have money in
their accounts.”

The source noted that Zenith bank, which was connected directly
to MTN and had their earnings at 2.70 per cent, was the only bank
that had not blocked the telco.

However, banks on MOD that had an uplift in their commission
from 2.0 per cent to 2.75 per cent have blocked services, according
to him. Banks with direct connection to the telco through MOD got a
commission uplift.

According to the source, the banks were unwilling to pay the
cost of the USSD channel and were okay with cutting off subscribers
in order to protect their profits.

The source added, “This only has to do with preservation of bank
profits, which are already substantial and growing despite the
wider economic conditions

“The government needs to step in and deal with this once and for
all. Nigerian banks need to stop their tyrannical posture.”

InsideBusiness.ng

Commercial banks have disconnected MTN customers from banking
channels including the Unstructured Supplementary Service Data and
banking apps.

MTN customers complained on Friday about being unable to
recharge their MTN lines using USSD and other banking channels like
the bank apps.

Customers were also unable to do banking transactions on MTN
lines through USSD.

According to a source, this was not the doing of MTN but the
banks who had refused to give any formal communication prior to the
disconnection.

The source said, “Please note that MTN didn’t cut off customers
and has no hand in this. This is strictly the banks acting on their
own.

“We woke up this morning to see that MTN customers were cut off
from USSD services overnight. This has come as a surprise as there
was no formal communication from the banks to their customers prior
to their taking this action.”

The source disclosed that MTN had reduced the banks’ commission
from an average of 3.5 per cent to 2.5 per cent which predicated
the actions of the banks.

According to the source, the reduction is standard because the
volumes compensate for the reduction, adding that the contract with
convenience channel partners and aggregators through which they
were indirectly connected to the banks allowed this.

The source said, “The banks wrote back to the aggregators to
revert back to the old commission, otherwise, they would block MTN
airtime in all their channels.

“The channels were blocked midnight leaving our customers
stranded. Interesting that the bank Managing Directors met and
quickly took a decision. Subscribers to telecommunications are
being denied services by the banks even when they have money in
their accounts.”

The source noted that Zenith bank, which was connected directly
to MTN and had their earnings at 2.70 per cent, was the only bank
that had not blocked the telco.

However, banks on MOD that had an uplift in their commission
from 2.0 per cent to 2.75 per cent have blocked services, according
to him. Banks with direct connection to the telco through MOD got a
commission uplift.

According to the source, the banks were unwilling to pay the
cost of the USSD channel and were okay with cutting off subscribers
in order to protect their profits.

The source added, “This only has to do with preservation of bank
profits, which are already substantial and growing despite the
wider economic conditions

“The government needs to step in and deal with this once and for
all. Nigerian banks need to stop their tyrannical posture.”

InsideBusiness.ng