E-Banking Fees Surge to N154 Billion in First Half of 2023 Amid Growing Adoption – Customers of nine leading commercial banks in Nigeria collectively paid a staggering N154 billion in fees for utilizing electronic banking (e-banking) services in the first half of 2023 (H1’23). According to the financial statements released by these banks for H1’23, this amount signifies a notable 16.7 percent increase compared to the N131.97 billion reported in the same period last year (H1’22).
The banks in question include Guaranty Trust Bank, which collected N21.2 billion; Access Bank with N43.9 billion; Zenith Bank at N22.27 billion; United Bank for Africa Plc garnering N51.07 billion; Stanbic IBTC with N2.14 billion; First City Monument Bank at N7.4 billion; Unity Bank collecting N1.96 billion; Fidelity Bank with N1.85 billion; and Wema Bank at N3.13 billion.
E-banking services, which have witnessed growing adoption among Nigerians, encompass transactions conducted through various electronic channels. These include internet banking, mobile banking, Automated Teller Machines (ATMs), and Point of Sale (PoS) terminals, among others.
Data from the Nigerian Interbank Settlement System (NIBSS) for Q1’23 further underscores this trend, showing a 209 percent year-on-year surge in the volume of e-payment transactions — from 1.52 billion in Q1’22 to 4.7 billion. Concurrently, the value of these transactions rose by 48 percent to N137.52 trillion in Q1’23, up from N92.85 trillion in Q1’22.
In addition, the aforementioned nine banks earned N66.7 billion from account maintenance fees and commission income during H1’23, marking a 14.7 percent increase from the N57.5 billion recorded in H1’22. Among these, Zenith Bank led the pack with the highest earnings from account maintenance fees and commission income, totaling N21.02 billion. It was followed by Access Bank (N13.36 billion), Guaranty Trust Bank (N10.5 billion), and United Bank of Africa (UBA) with N9.6 billion.
Notably, UBA registered the highest year-on-year growth in this category at 47.6 percent, earning N9.6 billion in H1’23 compared to N6.5 billion in H1’22.
The total net fees and commission income for these nine banks also experienced a significant uptick, growing by 20.7 percent year-on-year to reach N448.47 billion in H1’23, up from N371.43 billion in H1’22.
The rising fees underscore the growing reliance and adoption of electronic banking services by Nigerians. As customers continue to embrace digital transactions for their convenience and efficiency, the banks are witnessing a concurrent increase in fee-based income, reflecting the changing dynamics and digitization of the banking sector in Nigeria.