FBN, Access, Zenith, GTBank ward off fintechs challenge

…rake in N165.27bn from e-banking in first quarter 2025

Leading Deposit Money Banks (DMBs) operating in the country brushed aside stiff competition from fintech firms to record a combined electronic banking income of N165.27 billion in the first quarter of 2025.

The banks, namely Guarantee Trust Holding Company (GTCO) Limited, Zenith Bank Plc, FBN Holdings Plc, United Bank for Africa Plc (UBA), Access Holdings Plc, Wema Bank Plc, FCMB Group Plc and Stanbic IBTC Holdings Plc, posted a 22.3 per cent increase in e-banking income compared to the N135.08 billion generated in Q1 2024.

This growth was driven by transactions across Point of Sales (PoS), Unstructured Supplementary Service Data (USSD), Automated Teller Machine (ATM) and Internet banking platforms.

The expanding customer base of the financial institutions contributed to higher fees and commissions.

The rise in income comes as fintech companies such as Palmpay, MoMo Payment Service Bank (MoMo PSB), Airtel SmartCash and Opay continued to challenge traditional banking revenue streams by offering zero charges on cash deposits and fund transfers.

Leading the pack is Access Holdings which reported N48.35 billion in e-banking income. The figure represents a 44.8 per cent increase from N33.4 billion realized in Q1 2024.

On the heels of Access Bank is the United Bank for Africa which earned N47.8 billion, about eight per cent appreciation from the N44.4 billion income it earned from electronic banking in the first quarter of 2024.

Third on the list is GTCO. The Bank’s income from e-banking grew from N11.3 billion to N17.06 billion, representing 51 per cent growth.

However, Zenith Bank and FCMB reported a decline in their electronic banking income in the period under review.

While Zenith Bank’s e-banking income declined by 19 per cent to N16.17 billion from N19.97 billion in Q1 2024, FCMB Group posted a 26 per cent decrease to N3.8 billion from the N5.09 billion reported in Q1 2024.

Meanwhile, Wema Bank recorded a significant increase of 259.9 per cent in e-banking income, earning N10.85 billion in Q1 2025, compared to the N3.02 billion income it earned from electronic banking in the previous year.

First Holdco and Stanbic IBTC Holdings also posted moderate increases of 19 per cent and 1.11 per cent, respectively.

An investment banker and stockbroker who spoke on the matter said banks gain traction on income from these lines as they extend retail and loan offerings.

“These banks witnessed increased transactions in Q1 2025, and it is expected to impact their fees and commissions”, the expert said.

The banks, in addition to e-banking income, also reported a combined N643.9 billion in fees and commission income in Q1 2025, a 31 per cent increase from N491.72 billion in Q1 2024.

Aside from income from transactions, the banks also generated N73.92 billion from current account maintenance fees, a 14.4 per cent rise from N64.64 billion in the same period last year.

This follows the Central Bank of Nigeria’s (CBN) reintroduction of a negotiable Current Account Maintenance (CAM) fee capped at N1 per N1,000 debit transactions, replacing the phased-out Commission on Turnover (CoT) fee.

“The revised guide to bank charges, which came into effect on April 1, 2013, provides for a phased elimination of the COT charges in the Nigerian banking industry.

“In the interest of the stability of the banking system, a Negotiable Current Account Maintenance Fee not exceeding N1 per mille may be charged in respect of all customer-induced debit transactions”, the CBN circular stated.

Meanwhile, financial market analysts have argued that past managements of some banks lacked alternative strategies to generate fees and commissions, leading to increased charges on customers.

The financial experts also blamed CBN’s limited enforcement actions against banks for high fees charged customers.

The growing pressure from fintechs offering cheaper and simpler digital financial services, they argued, is a major factor shaping the competitive landscape and prompting banks to innovate and diversify their income sources.