The electronic banking revenue of ten listed banks experienced a significant upswing of 38.9 percent last year, largely attributed to the Central Bank of Nigeria (CBN)’s cashless initiative.
An analysis conducted by BusinessDay based on the latest financial statements of these banks revealed a total revenue surge from N309 billion in 2022 to N427 billion in the same period last year.
The banks included in the analysis are Access Holdings Plc, Zenith Bank Plc, United Bank for Africa (UBA) Plc, FBN Holdings Plc, Guaranty Trust Holding Company (GTCO) Plc, Fidelity Bank Plc, FCMB Group Plc, Stanbic IBTC Holdings Plc, Sterling Financial Holdings Company Plc, and Wema Bank Plc.
According to Tesleemah Lateef, a bank analyst at Cordros Securities Limited, the increased revenue from electronic banking can be attributed to the surge in online transactions, a consequence of the cashless policy implemented by the CBN in the first quarter of 2023.
UBA emerged with the highest electronic banking revenue of N125.5 billion, followed closely by Access Holdings with N101.6 billion. FBN Holdings, Zenith Bank, and GTCO also recorded substantial figures of N66 billion, N51.8 billion, and N40.8 billion, respectively.
The CBN has been proactive in promoting a cashless society through various initiatives aimed at bolstering digital payments and reducing reliance on cash. These efforts have resulted in a notable increase in financial inclusion, which rose to 74 percent in 2023 from 68 percent in 2020, as reported by the 2023 Enhancing Financial Innovation and Access survey.
Furthermore, the introduction of the naira redesign policy in October 2022 by the former CBN governor, Godwin Emefiele, aimed at enhancing Nigeria’s monetary policy and promoting digital alternatives such as the eNaira, has contributed to the expansion of payment channels across the country.
Despite facing competition from fintech payment providers like Opay and Moniepoint, Nigerian banks have leveraged fintech products to enhance their operations and customer satisfaction. This strategic investment has yielded positive results, evident in the remarkable growth of electronic business commissions and fees recorded by these banks.
Individual bank analyses reveal significant increases in electronic banking income across the board, underscoring the sector’s resilience and adaptability to the evolving digital landscape.
