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Customers of nine prominent Nigerian commercial banks paid a staggering N154 billion in fees for utilising electronic banking (e-banking) services during the first half of 2023 (H1’23).
The banks in question, including Guaranty Trust Bank, Access Bank, Zenith Bank, United Bank for Africa Plc, Stanbic IBTC, First City Monument Bank, Unity Bank, Fidelity Bank, and Wema Bank, collectively amassed these substantial fees from the growing adoption of e-banking services.
The latest data from the Nigerian Interbank Settlement System (NIBSS) reveals a substantial 16.7 percent increase compared to the N131.97 billion reported in the same period last year (H1’22), as customers continue to embrace digital transactions for their convenience and efficiency.
E-banking services encompass a range of electronic channels, including internet banking, mobile banking, Automated Teller Machines (ATMs), and Point of Sale (PoS) terminals, among others, and have witnessed exponential growth in usage among Nigerians.
Data from the Nigerian Interbank Settlement System (NIBSS) for Q1’23 reveals a significant 209 per cent year-on-year surge in the volume of e-payment transactions, soaring from 1.52 billion in Q1’22 to N4.7 billion.
Concurrently, the value of these transactions surged by 48 per cent to N137.52 trillion in Q1’23, up from N92.85 trillion in Q1’22.
Apart from e-banking fees, the aforementioned nine banks earned N66.7 billion from account maintenance fees and commission income during H1’23, marking a 14.7 per cent increase from the N57.5 billion recorded in H1’22.
Zenith Bank emerged as the frontrunner in earnings from account maintenance fees and commission income, totaling N21.02 billion.
It was closely followed by Access Bank (N13.36 billion), Guaranty Trust Bank (N10.5 billion), and United Bank of Africa (UBA) with N9.6 billion.
Additionally, UBA witnessed the highest year-on-year growth in this category at 47.6 per cent, earning N9.6 billion in H1’23 compared to N6.5 billion in H1’22.
In aggregate, the total net fees and commission income for these nine banks also witnessed a significant uptick, growing by 20.7 per cent year-on-year to reach N448.47 billion in H1’23, up from N371.43 billion in H1’22.