What is USSD Banking? [All You Need to Know]

Mobile banking has revolutionized the way we manage our finances, allowing us to perform various banking transactions anytime, anywhere, using our mobile phones.

Unstructured Supplementary Service Data (USSD) banking is a mobile banking service that has gained popularity in recent years due to its accessibility, cost-effectiveness, and convenience.

USSD banking is a communication protocol used by GSM cellular networks to send and receive text messages, enabling customers to perform banking transactions using a simple menu-based system on their mobile phones.

The importance of USSD banking lies in its ability to provide customers with an easy and accessible way to manage their finances without having to visit a physical bank branch.

USSD banking is particularly useful in areas where internet access is limited or expensive, as it allows customers to perform banking transactions quickly and easily using their mobile phones.

It is also a cost-effective option for customers who want to avoid transaction fees associated with traditional banking methods.

The purpose of this article is to provide a comprehensive guide to USSD banking, including its definition, how it works, its advantages, security measures, and limitations.

We will also discuss the impact of USSD banking on the banking industry and its future. By the end of this article, you will have a clear understanding of USSD banking and how it can benefit you in managing your finances.

How USSD Banking Works

USSD banking is a simple and straightforward process that allows customers to perform banking transactions using a series of menu options.

To use USSD banking, customers need to dial a short code on their mobile phones, which is usually provided by their bank. Once the shortcode is dialed, the customer is presented with a menu of options to select from.

To access USSD banking, you need to dial a short code on their mobile phones, which is usually provided by your bank. The shortcode varies depending on the bank and the type of transaction the customer wants to perform.

For example, Access Bank’s USSD banking short code is *901#, which allows you to perform various banking transactions.

Once the shortcode is dialed, customers are presented with a menu of options to select from. The menu options vary depending on the bank and the type of transaction the customer wants to perform. For example, Access Bank’s menu options include but are not limited to the following:

1. Airtime Purchase: This option allows customers to buy airtime for themselves or someone else using their Access Bank account.
2. Transfer Money: This option allows customers to transfer funds from their Access Bank account to other Access Bank accounts or accounts in other banks.
3. Account Balance: This option allows customers to check their Access Bank account balance.
4. Bills Payment: This option allows customers to pay bills such as electricity, cable TV, and internet subscription.

Examples of Transactions using Access Bank:

Let’s say you want to buy airtime for yourself using Access Bank’s USSD banking service. You would follow these simple steps:

1. Dial *901# on your mobile phone and select the “Airtime Purchase” option from the menu.
2. Select “Self” to purchase airtime for yourself.
3. Enter the amount of airtime you want to buy and confirm the transaction.
4. You will receive a confirmation message that your airtime purchase was successful.

Similarly, if you want to transfer funds from your Access Bank account to another bank account, you would follow these steps:

1. Dial *901# on your mobile phone and select the “Transfer Money” option from the menu.
2. Select the bank you want to transfer to and enter the account number.
3. Enter the amount you want to transfer and confirm the transaction.
4. You will receive a confirmation message that your transfer was successful.

USSD banking is a fast and convenient way to perform banking transactions using your mobile phone, and it can save you time and money compared to traditional banking methods.

Advantages of USSD Banking

USSD banking offers several advantages that make it an attractive option for customers. Some of the key advantages of USSD banking include:

1. Accessibility:

One of the biggest advantages of USSD banking is its accessibility. Unlike traditional banking methods that require customers to visit a physical bank branch, USSD banking allows customers to perform banking transactions anytime, anywhere, using their mobile phones. This is particularly useful in areas where internet access is limited or expensive, as USSD banking uses a simple text-based menu system that works on any mobile phone with a GSM connection.

2. Cost-Effectiveness:

Another advantage of USSD banking is its cost-effectiveness. USSD banking transactions are typically cheaper than transactions performed using traditional banking methods, such as visiting a bank branch or using an ATM. This is because USSD banking does not require any special software or hardware, and the transaction fees are usually lower compared to other banking channels.

3. Convenience:

USSD banking is also a convenient option for customers who want to perform banking transactions quickly and easily. With USSD banking, you can perform a range of transactions, including checking your account balance, transferring money, paying bills, and purchasing airtime, without having to visit a physical bank branch or use a computer. USSD banking is also available 24/7, which means that you can perform transactions at any time of the day or night.

Limitations of USSD Banking

1. Limited Functionality

One of the biggest limitations of USSD banking is its limited functionality. Compared to other banking channels, such as online banking or mobile banking apps, USSD banking offers a more limited range of services. Typically, USSD banking only allows customers to perform basic transactions, such as checking their account balance, transferring money, and purchasing airtime. More complex transactions, such as opening a new account or applying for a loan, may not be available through USSD banking.

2. Network Connectivity Issues

Another limitation of USSD banking is network connectivity issues. USSD banking requires a reliable and stable network connection to function properly. In areas with poor network coverage or slow internet speeds, USSD banking transactions may be slow or may not work at all. This can be particularly frustrating for customers who need to perform urgent transactions, such as paying bills or transferring money.

3. Security Risks

While USSD banking has several security measures in place to protect customer accounts, there is still a risk of security breaches and fraud. Cybercriminals may attempt to steal customers’ personal and financial information or trick them into performing unauthorized transactions. You should take steps to protect your accounts, such as using strong passwords, not sharing your PIN or other authentication information with anyone, and monitoring your account activity regularly.

Security Measures for USSD Banking

USSD banking is a convenient and accessible way to manage your finances, but it is important to take steps to protect your account from unauthorized access and fraud. To ensure the security of USSD banking transactions, banks implement several security measures. Here are some of the key security measures for USSD banking:

1. Personal Identification Number (PIN)

The most common security measure for USSD banking is a Personal Identification Number (PIN). When you register for USSD banking, you will be asked to create a PIN, which you will need to enter every time you perform a transaction. Your PIN serves as a personal code that verifies your identity and ensures that only you can access your account.

2. Other Authentication Methods

In addition to PINs, banks may also use other authentication methods to ensure the security of USSD banking transactions. For example, some banks may require you to provide additional information, such as your date of birth or a one-time password (OTP), before you can perform a transaction. These authentication methods help to ensure that only authorized users can access your account.

3. Encryption

Encryption is another important security measure for USSD banking. Encryption is the process of converting data into a code to prevent unauthorized access. When you perform a transaction using USSD banking, the data is encrypted before it is transmitted over the network, making it more difficult for hackers to intercept and steal your information.

USSD Banking and the Banking Industry

USSD banking has become an important part of the banking industry, providing customers with a convenient and accessible way to manage their finances. Here are some of the key ways that USSD banking is changing the banking industry:

1. Customer Satisfaction

One of the biggest benefits of USSD banking for banks is increased customer satisfaction. With USSD banking, customers can perform basic transactions quickly and easily, without the need to visit a bank branch or use a more complex banking channel. This can lead to higher customer satisfaction levels and increased customer loyalty.

2. Increased Efficiency

USSD banking also offers increased efficiency for banks. By automating basic transactions, such as checking account balances and transferring money, banks can reduce the time and resources required to perform these tasks manually. This can free up staff to focus on more complex tasks, such as customer service and problem-solving.

3. Reduced Overhead Costs

Another benefit of USSD banking is reduced overhead costs for banks. By automating basic transactions and reducing the need for manual processes, banks can save on staffing and other overhead costs. 

This can help to improve the bottom line and make banks more competitive in a crowded marketplace.

Access Bank USSD Strings You Should Know 

Access Bank has a convenient USSD banking solution known as *901#. This solution provides customers with easy access to their accounts and the ability to perform a variety of transactions, all from their mobile phone. 

Here are some of the features of Access Bank USSD that you can access:

1. USSD String for Account Opening/Change of Pin/Registration

You can open a new Access Bank account, change your PIN, and register for our other services using the 901# code. All you need to do is dial 901*0#

2. USSD String for Airtime Purchase

You can easily buy airtime for yourself or your loved ones using the 901# code. Dial 901*Amount#

3. USSD String for Money Transfer

As an Access Bank customer, you can transfer funds to other Access Bank accounts or to other banks with the 901# code. 

This service is available 24/7 and is completely secure. Dial 901*AMOUNT*NUBAN Account Number# for intra-bank transfers and transfers to other banks.

4. USSD String for LCC Toll Top-up

The 901# code also allows customers to top-up their Lekki Concession Company (LCC) toll account. 

This service makes it easy for you to use the LCC toll service without having to stop and pay manually. Just dial 901*000*522+e-Tag Number+Amount#

5. USSD String for Checking Your Account Balance

You can easily check your Access Bank account balance using the 901# code. This service is available 24/7 and is free of charge. 

Dial 901*00# on your Access Bank registered phone number.

6. USSD String for Deactivating Your Account

In the event that your phone is lost or stolen, you can quickly deactivate your Access Bank account using the 901# code. 

This helps you prevent unauthorized access and keeps the customer’s account secure. All you need to do is dial Dial 901*911#

*901# Progressive Web Application

Access Bank has taken its USSD banking solution to the next level with the introduction of the *901# Progressive Web Application (PWA). 

This app is available on Android devices and provides customers with an even more convenient way to manage their finances.

With the *901# PWA, you can perform a variety of transactions, such as buying airtime, making transfers, paying utility bills, topping up your LCC toll account, and even opening a new Access Bank account. All you need to do is click on the link to get started.

The *901# PWA is designed to work seamlessly on all Android devices, and it offers a user-friendly interface that makes it easy for customers to navigate and complete transactions quickly. Plus, the app is optimized for performance, so it loads quickly and doesn’t use too much data.

One of the major advantages of the *901# PWA is that it doesn’t require you to download any additional apps or updates. All you need is a compatible Android device and an internet connection, and you can start using the app right away.

Conclusion

USSD banking has revolutionized the banking industry, providing customers with a convenient and accessible way to manage their finances. We have covered the definition of USSD banking, how it works, its advantages, limitations, and its impact on the banking industry.

Looking to the future, USSD banking is likely to continue to grow in popularity as more customers look for convenient and accessible ways to manage their finances. As such, we encourage you to take advantage of USSD banking by opening an Access Bank account and using the Access Bank code often. So, what are you waiting for? Open an Access Bank account today and start enjoying the convenience and accessibility of USSD banking.