Digital Boom: Banks rake in N438bn from online transactions in 2023

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Nigerian banks are reaping the rewards of a growing digital banking landscape. According to a recent analysis of annual reports from 10 financial institutions, digital transactions generated a staggering N438 billion in revenue for banks in 2023. This represents a significant increase of 37.54% compared to N318.64 billion earned in 2022.

The surge in digital transactions highlights the changing habits of Nigerian consumers, who are increasingly embracing online and mobile banking platforms for their financial needs.

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This shift can be attributed to several factors:

• Improved internet penetration: Wider access to affordable internet has empowered Nigerians to explore online banking options.
• Convenience and security: Mobile apps and internet banking offer 24/7 access to manage finances, pay bills, and transfer funds, all from the comfort of a user’s device.
• Growing smartphone adoption: The increasing prevalence of smartphones has made mobile banking a seamless and readily available option.

Some of the banks’ annual reports analysed were FBN Holdings, Access Holdings, Guaranty Trust Holding Company, United Bank for Africa, Zenith Bank, Wema Bank, Fidelity Bank, FCMB Group, Stanbic IBTC Holdings and Sterling Financial Holdings Company.

Leading other banks in terms of revenue from electronic banking was UBA, which raked in N125.58bn compared to N78.94bn in 2022.

Conversely, the banking group’s IT support and related expenses jumped by 148 per cent to N23.19bn from N9.32bn in the preceding year.