In the first half of 2023, customers of nine leading commercial banks in Nigeria were charged a total fee of N154 billion for utilizing Electronic Banking Fees Surge. This figure represents a substantial 16.7 percent year-on-year increase compared to the N131.97 billion levied in the same period in 2022.
The banks that contributed to this Electronic Banking Fees Surge include Guaranty Trust Bank (N21.2 billion), Access Bank (N43.9 billion), Zenith Bank (N22.27 billion), United Bank for Africa Plc (N51.07 billion), Stanbic IBTC (N2.14 billion), First City Monument Bank (N7.4 billion), Unity Bank (N1.96 billion), Fidelity Bank (N1.85 billion), and Wema Bank (N3.13 billion).
Electronic banking encompasses a range of services that facilitate financial transactions through electronic payment channels such as internet banking, mobile banking, Automated Teller Machines (ATMs), and Point of Sale (PoS) systems, among others.
The notable increase in electronic banking fees and commissions indicates a growing adoption of electronic payment channels by Nigerians. According to data from the Nigerian Interbank Settlement System (NIBSS) for the first quarter of 2023, the volume of e-payment transactions experienced a remarkable year-on-year growth of 209 percent, surging to 4.7 billion from 1.52 billion in the same period in 2022. Additionally, the value of e-payment transactions rose by 48 percent year-on-year to N137.52 trillion in Q1’23 from N92.85 trillion in Q1’22.
During the first half of 2023, the nine banks also generated N66.7 billion from account maintenance fees and commission income, marking a 14.7 percent year-on-year increase compared to the N57.5 billion recorded in the corresponding period of 2022 (H1’22).
Zenith Bank led the pack in terms of account maintenance fees and commission income, amassing N21.02 billion, followed by Access Bank (N13.36 billion), Guaranty Trust Bank (N10.5 billion), United Bank of Africa (UBA) (N9.6 billion), First City Monument Bank (FCMB) (N3.85 billion), Fidelity Bank (N3.4 billion), Stanbic IBTC (N2.64 billion), Wema Bank (N1.63 billion), and Unity Bank (N742.6 million).
In terms of growth, UBA experienced the highest year-on-year increase of 47.6 percent, reporting N9.6 billion in account maintenance fees and commission income for H1’23, compared to N6.5 billion in H1’22.
The cumulative net fees and commission income for these banks exhibited robust year-on-year growth of 20.7 percent, reaching N448.47 billion in H1’23 from N371.43 billion in H1’22. This surge in fees and commissions underscores the evolving landscape of banking services in Nigeria, driven by the increasing adoption of electronic banking and financial technologies.
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