Nigeria’s largest bank (in terms of customer base and total assets) garnered N29.9 billion from its e-business channels and revenues in 2020, up 37% from the same period in 2019. The bank posted a record N21 at the time. 8 billion of its E-Business revenues.
The bank’s e-commerce revenue now contributes around 40.5% of fees and commissions, up from 42% in the same period last year. The bank’s fees and commissions were 73.7 billion naira in June 2021 compared to June 2020.
Nigerian banks garnered around 216 billion naira in e-business revenue in 2020, with Access Bank leading the rankings with around 56.09 billion naira compared to 36 billion naira in 2019. The bank is therefore growing more slowly than ‘in 2020, however, the numbers are staggering. In fact, it is still early days as its e-commerce channels and revenues were only 13.9 billion naira at the same time period in 2020.
Access Bank became the largest bank in the country after its merger with Diamond Bank, a leading technology-driven commercial bank, which was a major attraction for Access Bank during the merger decision. Since the merger, the bank has seen its deposits rise to 7.7 trillion naira, from around 3.5 trillion naira in 2018, when the merger was first exposed. The revenue base is perhaps the primary driver of its e-business revenue growth.
Nigeria has seen a massive increase in electronic banking services as the growing adoption of mobile phones and viral social media results in massive data consumption and spending across multiple channels.
- The banking industry is also benefiting massively from the wave of adoption of cellphones, which are proving to be easy-to-use, secure banking apps that seemingly work like social media apps.
- We believe that the adoption of mobile banking services will increase to become an important source of revenue for Nigerian banks, especially through data monetization, an aspect of revenue that they have not yet tapped into.