Report: Banks increase e-banking revenue to N96 billion

In order to increase their revenue from electronic banking, at least 12 Nigerian banks have benefited from the Central Bank of Nigeria’s policy of redesigning the naira.

An examination of the banks’ financial statements for the first quarter of 2023 revealed that their electronic banking platforms contributed to a total revenue of N96.48 billion.

From the N77.91bn reported in the previous quarter of 2022, this was an increase of 23.84%.

The top two e-banking revenue generators were Access Holdings Plc (N20.66bn) and United Bank for Africa Plc (N20.93bn).

Zenith Bank Plc ($12.08 billion), FirstBank Nigeria ($17.88 billion), and Guaranty Trust Bank ($11.43 billion) were among the other top earners.

FCMB (N6.58bn), Union Bank (N1.97bn), Wema Bank (N1.52bn), Unity Bank (N1.29bn), Stanbic IBTC (N958m), Fidelity Bank (N955m), and Jaiz Bank (N244m) were some of the other financial institutions.

Income from electronic banking channels, such as mobile applications, USSD channels, and internet banking, is included.

The CBN’s naira redesign policy appears to be responsible for the growth in e-business income.

The number of cashless transactions in Nigeria has increased since the CBN’s naira redesign policy, which has since been postponed, forced many citizens to use electronic payment methods.

According to industry statistics from the Nigeria Inter-Bank Settlement System, cashless transactions increased by 44.84 percent to N126.73 trillion in the first quarter of 2023 from N87.49 trillion in the corresponding period of 2022.

The CBN has emphasised that by 2025, fewer transactions will be made in cash in the nation. This was stated in the document titled Payments Vision 2025.

It stated that by 2025, the nation would have an effective electronic payment system infrastructure to support all economic sectors.

According to it, “The use of cash will naturally decline as the’mobile first generation,’ who will be economically active by 2025, enters the workforce. As a result, one of the PSV 2025’s key objectives is to strengthen the CBN’s cashless policy.

The CBN will continue to make sure that Nigeria’s payments system is widely used at home, supports the government’s financial inclusion goals, and complies with international standards while contributing to the country’s overall economic development.