We live in a world of instant access, thanks to digital technology. We want instant access to our money, even when we keep it in the bank. And therein is the problem. If you want to keep your money safe in the bank, you need to be willing and ready to let go of some of that craving for instant access.
Today, almost anyone can setup a digital bank account in a matter of minutes. All you have to do is download an app and create an account. Once setup, you can also transfer your money anytime that you need it. With a few taps, you can move millions of naira or dollars to a 3rd party.
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It is super convenient. Internet and mobile banking give us the freedom to access our money anytime and from anywhere.
Banking freedom comes at a price
This convenience comes at a cost: an increased risk of losing your money. That risk can manifest in different ways. Let me share a few examples.
If you have an unscrupulous partner or friend in your personal space, all they need is physical access to your phone and they can transfer money out of your account in a jiffy. We have heard stories of spouses and domestic staff doing this. Your money is gone in sixty seconds.
And with our obsession with fingerprint and facial recognition as security, it makes matters worse. You can be asleep and someone will use your finger or face to unlock your phone, access your banking app, and move funds out. It works like magic. I know you don’t want to hear it, but sometimes, a password is much better security.
Another way this risk of instant access to your funds can rear its ugly head is if accosted by robbers or rogue police officers. You have heard or read stories of people who have had millions moved out of their accounts this way. The screenshot below captures one such story:
You can read more details of this sad story on X (formerly Twitter). The good news is that there is something you can do to reduce the chances of you losing huge chunks of money this way.
Take these steps to keep your money safe in the bank
To avoid the scenarios in which instant access to your money in the bank means that you can also easily lose it all, you need to implement a two-pronged strategy.
That strategy involves keeping most of your money out of reach via Internet banking of any sort. In simple terms, keep two types of accounts: one that has internet/mobile banking enabled for it and another that does not.
In other words, have both offline and online bank accounts. Keep your savings and the biggest portions of your spending money in the offline account. Keep only the most immediately needed funds in your online bank accounts.
If you have multiple bank accounts that have online access, you can instruct your bank to change the status of some of them. Decide which ones you want to take offline, then go to your bank and request for them to disable ALL Internet banking access to those accounts, so you can withdraw and transfer from them only by going into the banking hall to manually process the transaction.
This might seem tedious to you, but this is not something you have to do weekly, so why not? Convenience is the enemy of security. If you want your money to be safer, you must be willing to inconvenience yourself a bit every now and then.
I know a number of people who run their bank accounts with this two-pronged approach. In fact, I know someone who has only one bank account that has internet/mobile banking active on it. All his other bank accounts are offline.
Are you going to make the move to keep your money safe in the bank? I wish you all the best. Stay safe out there.