In 2023, digital banking channels generated approximately N438bn for 10 financial institutions, a 37.54 percent increase from N318.64bn the previous year. This income includes revenue from mobile apps, USSD channels, ATMs, agency banking, internet banking, POS payments, and card transactions. The rise in electronic business income highlights the growing reliance on mobile and online banking in Nigeria.
Annual reports from banks such as FBN Holdings, Access Holdings, GTCO, UBA, Zenith Bank, Wema Bank, Fidelity Bank, FCMB Group, Stanbic IBTC Holdings, and Sterling Financial Holdings Company were analyzed by The PUNCH. UBA led with N125.58bn from electronic banking, a significant increase from N78.94bn in 2022, demonstrating its strong performance in the digital banking sector.
IT support and related expenses surged by 148 percent, reaching N23.19bn from N9.32bn the previous year. Access Holdings reported N101.62bn in electronic business income, a 70.34 percent rise from 2022, while its IT expenses climbed to N78.05bn from N44.63bn. FBN Holdings saw its earnings from electronic business increase to N66.34bn from N55.09bn, with electronic banking fees being a major contributor.
Zenith Bank reported a 13.29 percent increase in electronic banking fees, totaling N51.82bn. GTCO’s income from electronic business rose to N40.83bn, and its IT-related expenses grew to N50.24bn from N42.39bn. FCMB saw its revenue from electronic fees climb to N17.69bn, nearly doubling its IT expenditure to N16.57bn. Fidelity Bank’s e-business earnings increased by 20.30 percent to N14.03bn, with IT spending surging by 274.73 percent to N16.57bn.
Analysts attribute the sector’s growth to increased technology adoption, which has driven up the financial services sector’s contribution to GDP. Dr. Afolabi Olowookere, Managing Director/Chief Economist at ADSR, noted that post-COVID-19, the financial sector and ICT have expanded due to more online transactions. This trend reflects the broader shift towards digitalization in banking, boosting financial inclusion and sector growth.
