Customers of leading commercial banks in Nigeria paid N225.6 billion as charges for accessing electronic business (e-business) services in the first nine months of 2023 (9M’23).
This represents a 32.3 percent year-on-year (YoY) increase when compared to N170.46 billion they paid in 9M’22. It also indicated increased adoption of electronic payment platforms by bank customers.
The 9M’23 financial statement of the banks shows that account maintenance fees paid during the period shot up YoY by 22 percent to N101.38 in 9M’23 from N82.81 billion in 9M’22.
The total fees and commission income generated by the banks during the period stood at N557 billion, representing a 17 percent YoY growth from N457.35 billion in 9M’22.
Charges paid by bank customers for performing transactions using electronic payment channels like mobile applications, Unstructured Supplementary Service Data (USSD), Automated Teller Machines (ATM), agency banking, internet banking, and point of sales (PoS) terminals are categorized as e-business charges in banks’ income lines.
These charges are part of the e-business income of banks which also include revenue from card products, and related services.
The banks involved in the reported revenue are Guaranty Trust Bank (N30.9 billion), Access Bank (N70.35 billion), Zenith Bank (N75.7 billion), United Bank for Africa, UBA (N33.5 billion), Stanbic IBTC (N3.2 billion), Fidelity Bank (N994 million), Unity Bank (N2.2 billion), Wema Bank (N5.2 billion) and Sterling Bank (N3.6 billion).
Analysts at Cowry Asset Management Plc, in their economic overview for third quarter of 2023 (Q3’23) noted that the banking sector has demonstrated an impressive year-to-date (YTD) growth rate of 59.6 percent as at third quarter of 2023, saying that adoption of digital banking solutions will offer the industry more avenue for growth.
They stated further: “The sector is expected to benefit from the country’s robust economic growth, which opens up avenues for increased banking activity and lending opportunities, providing a favourable backdrop for the sector’s expansion.
“The ongoing adoption of digital banking solutions is another pivotal factor. As digital banking continues to expand, it brings efficiency gains and convenient services to both customers and banks. This technological advancement is reshaping the banking landscape and offers avenues for growth.”