Nigerian Banks take on Fintechs

Nigerian Banks take on Fintechs
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Generates $157 Billion through Digital Banking Transaction

Nigerian banks are longer just maintaining the status quo of traditional banking, they are seeing fast-emerging opportunities across the digital banking value chain, and positioning for a share of the growing market.

Three of Nigeria's Tier-1 banks namely Access Holdings. Guaranty Trust Holdings and Zenith Bank, the most technology-driven players in the industry have generated NGN 123.94 trillion (approx. USD 157 billion) across various digital banking channels namely Mobile Banking, Automated Teller Machines (ATMs) and Unstructured Supplementary Service Data in the half year ended June 30, 2023.

This represents an increase of 28.3 per cent over N96.58 trillion reported in the corresponding half-year ended June 30, 2022.

  • Market leader Zenith Bank generated N54.03 trillion in H1 2023, an increase of 9.1 per cent from N49.5 trillion reported in H1 2022.
  • Access Holdings, generated N49.69 trillion in H1 2023 from N28.85 trillion in H1 2022, while GTCO declared N20.22 trillion in revenue in H1 2023, an increase of about 11 per cent from N18.22 trillion reported in H1 2022.
  • Charges on USSD transactions and the drop by 15% reflect customer sensitivity and the preference for other channels.

While Fintechs across Nigeria continue to evolve with new products and infrastructure. The Nigerian banks known for their country and regional-wide banking infrastructure are investing significantly in digital banking capabilities making them a dominant force in the fintech space.