The growing adoption and investment in financial technology has earned 11 deposit money banks about N124.5bn revenue from electronic transactions in 2018.

Nigerian banks have continued to introduce digital products into the financial sector and their operations, organising hackathons in order to develop tech solution to address problems in the industry, sponsoring innovation competitions and introducing chatbot and Whatsapp banking to improve user experience.


All these are believed to have contributed to the growth experienced in the revenue from electronic transactions by the banks.

Analyses of the audited 2018 annual reports of 11 banks showed their revenue from electronic transactions grew by 43 per cent year-on-year from the N86.72bn earned by the financial institutions in 2017.

The revenue was generated from the fees and commission that the banks charged their customers when they carried out transactions through Automated Teller Machines, USSD, Internet banking, Point of Sale payments and agency banking.

Some of the banks assessed are Zenith Bank Plc, First City Monument Bank Plc, Access Bank Plc, Guaranty Trust Bank Plc, United Bank for Africa Plc, Sterling Bank Plc, First Bank of Nigeria Limited and Fidelity Bank Plc.

Others are Jaiz Bank Plc, Union Bank of Nigeria Plc, and Wema Bank Plc.

First Bank earned the highest income on its electronic products in 2018, reporting N34.03bn revenue, a 36 per cent increase in revenue from N24.99bn in the corresponding period of 2017.

UBA ranked second, reporting N27.92bn revenue from electronic transactions, a 33 per cent increase from the N20.92bn generated during the same period in 2017.

With N20.42bn revenue, Zenith Bank reported a 44 per cent increase in its electronic banking income in 2018 as against N14.15bn earned in 2017.


Earnings from electronic transactions by GTB rose by 28 per cent from N7.48bn in 2017 to N9.59bn in 2018.

Access Bank’s electronic business income closed 2018 with N8.38bn, an increase of 45 per cent over the N5.79bn revenue earned in 2017.

FCMB’s earnings from electronic transactions also improved by 45 per cent to N8.32bn in 2018 as against N5.75bn in 2017.


Sterling Bank recorded N4.85bn income from electronic payments in 2018 but there was no record of its electronic payment earnings for 2017.

With N4.73bn reported for 2018, Union Bank’s earnings grew by 40 per cent year-on-year from N3.38bn in 2017.

For Fidelity bank, it generated N2.85bn from its digital products in 2018, an increase of 62 per cent from the N1.76bn earned in 2017.

Wema Bank earned N2.84bn from its digital payment platform in 2018, growing by 29 per cent as against the N2.20bn revenue in 2017.

Fees and commissions on digital payments earned by Jaiz Bank amounted to N323m as against the N303m it earned in 2017, recording six per cent year-on-year growth

The Central Bank of Nigeria’s guidelines on bank charges, which took effect on May 1, 2017, stipulated that withdrawal from other banks’ ATMs within the country would attract N65 charge after the third withdrawal within the same month.

According to the guidelines, bills payment on electronic channels of the banks also attracts N50 for transactions below and above N10bn, while real-time gross settlement attracts N550 per transaction.

The apex bank stated that alerts on transactions should not be more than N4 per SMS, while bulk payments such as salaries and dividends attract a maximum of N50 per beneficiary, which is paid by the sender.

The electronic payments have become a huge revenue earner for Nigerian banks as can be seen in the growing volume and value of electronic payments logged by the Nigerian Inter-Bank Settlement Scheme. In 2018, electronic instant payments grossed N80.4tn on NIBSS platform, growing by 43 per cent year-on-year from N56.17tn in 2017.

The Managing Director, Upperlink Limited, Mr Segun Akano, said investment in technology for financial transaction was more profitable for Nigerian banks when compared with funds required to establish bank branches for customer’s transaction in the banking hall.

According to him, the customers also have a preference for transactions at their convenience, especially on mobile devices.

“Walk-in bank branch payments are reducing and it is an indication that consumers have accepted other channels of payments more, probably because of convenience and availability. Many people have embraced their phones because the banks have improved in terms of expanding their reach through these devices and it is more profitable for them too, obviously a win-win situation,” Akano said.

He added, “Imagine a bank branch that has to deal with 2,000 customers a day, the services they need to provide a comfort level are quite enormous. The security arrangement, fear of misbehaviour, noises in banking halls, car park hassles, etc, then compare with where you don’t have to have physical contacts with these customers and yet your transactions are going via devices like mobile phones, laptops, ATM and PoS terminals.

“Certainly, transactions have not reduced; it is only the channels that keep experiencing different levels of traffic. While some are increasing, some are reducing but the traditional walk-in bank branch will continue to be a victim.”

The Chief Digital Officer, Alat by WEMA, Mr Dele Adeyinka, said the target of all stakeholders, comprising fintechs, banks, card schemes, switches and the regulator, was to ensure that all Nigerians were financially included.

According to him, bank customers and non-bank customers should be able to use several alternative means of payments, except cash, to carry financial transactions.

Adeyinka said, “Techs and banks as well as several others in the ecosystem, our ultimate goal is to be able to bring a 100 per cent of the Nigerian population into the financial ecosystem. Meaning that we should allow everyone to have access to financial transactions using their devices at the comfort of their homes, offices and wherever they find themselves.

“Today, we only have about 38 million Nigerians who have access to financial services; a fraction of them have accounts in different banks but that is not ultimately where we need to get to. Our work is clearly cut out for us. Until when we are able to make financial services available in the urban and rural areas and bring everyone into the financial sector, that is when we can say we have achieved.”

Nigerians banks are banking to the banks for real!!

5 bedroom duplex for sale at Crown estate lagos.

Scammers dem

Charging for sms and atm monthly for almost 2 years meanwhile I dont even have the mobile number again nor have their atm.

Contact customer care? Would rather count how many rice and beans I have left in the house

these people are eating us

Na their way

Bank business.... Is good business.

52.5

And Diamond bank still folded how? The CEO of Diamond bank needs flogging

post=78141517:
Nigerians banks are banking to the banks for real!!

How was yesterday market , hope you sold all

And these Banks pay miserable dividends for my shares!
Selfish and Greedy conglomerates!

stephany007:
this people are eating us

As if we are food

I don't care, is not my money abeg, they only make 52 naira per transaction and is nothing. So the billions belongs to other Nigerians not me

stephany007:
this people are eating us

These people...

At least they are giving us convenience
If I were to go to the bank, taxi would be taking #200. If I do it from home, it's not up to #40.

Technology is really making this world better. Take your business online today, contact me for your website. Delivery in 72 hours.

The reason they always insist customers use atm for transactions. You want to withdraw N100,000; it comes out in bundles of N10,000 and you then need to do 10 of such transaction dashing banks money on each withdrawal. When I have their time I insist on collecting the money from the desk collapsing what would have been 10 transactions into 1. Nigerian banks are fraudsters!

and later dey will start debiting us for card maintenance, SMS alert and other nonsense.. Nigerian banks are d real scam..

Later in future all activities would be replaced by a machine...

Hji

GrammarNazi1:

These people...

......Thanks on his behalf.......

Why won't first Bank be the highest earner when the stupid bank will debited you for VTU you requested for and the Airtime will not reflect on you phone, and stupid people will want you to come and report in thier office, u debited me 300 VTU without reflecting on my account and you are expecting me to spend about #150 for transport to your branch to come and lodge complains , scammers, thier own scam pass Yahoo boy own

Na daimond give a access Bank mouth oo

First Bank


Always First

Well I won't dispute that firstbank figure because they are the best when it comes to app/electronics transactions, they are just too simple, easy and perfect to use. Their apps is the best and most advanced even though people see them as old school and thinks banks like gtb, zenith and access should be better but in reality firstbank and Uba are extremely advanced than those new generation bank in terms of internet banking.
However first bank needs to improve on their expansion scheme to address the issues of overcrowded banking hall, they also needs to work on their ATM machines, out of average 7ATM machines located in their banks, only 2 ATM machines normally works and the queue is usually more than 20 per time which makes it scary going to firstbank Atm machines or banking all.

Its because of recharge card sales they are making that much.

dheaven:
Its because of recharge card sales they are making that much.

Bros it is not just recharge sales, it is majorly based on cash transfer, ATM machine usage and online transactions generally. If you analys it very well, u will noticed the leading banks are banks that has enomous customer base and people generally avoid their banking hall.
Sometimes I think firstbank deliberately under utilized their ATM machine because only 1 or 2 ATM machine normally works where you may see 5 or 7 atm machines which will then forced u to either use your online apps or do transfer or use another branch atm machine which they will eventually charge you and brings in more profit to them without doing any work.

They are robbing us due to useless regulators who are either shareholders in all this banks or collect certain quarter from them otherwise it is simple logic that banks deliberately frustrate people to use another banks atm machines or do online transfer or e banking and most of the other banks atm machines that we often resort to are the non popular banks like Wema, keystone, union Bank etc.

I looked out for first bank to earn the highest.
Unsurprisingly they did. Ordinary N100 recharge card, they will charge 52.50 for the transaction. They charge for everything just everything.

First bank, bank with the highest customers in Nigeria and best services.

From https://missybanker.com

Source?

Diamond was busy doing mtn yellow instead of lunching ussd.