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Tuesday, March 21, 2023

FCMB’s Digital Banking is Poster Child of Fintech

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With its savvy interfaces, smart features and oodles of VC money, FCMB Group Plc is creating a rare niche in the digital banking space, making it the poster-child for fintech.

Customers’ adoption of digital banking has been accelerating over the past five years, and the coronavirus pandemic greatly buoyed the shift to online transactions.

The government imposed a lockdown measure to prevent the spread of the virus, and that drove retail customers online in a way that has never been seen before.

One lender is taking advantage of the shift by customers to online space from the traditional visiting to the banking hall is FCMB Group; the lender has been leveraging its digital competencies to increase customer acquisition, CASA and digital adoption.

FCMB investments in digital financial services are yielding positive results. For instance, there has been a steady increase in adoption of digital channels for transactions, which is now 60 percent as of June 2021, and that’s an improvement from 53 percent in 2020.

It is worthy to note that 90 percent of total customers acquired have been boarded on digital channels as at the second quarter (H1-2021).

As of 2019, there were 3.62 million customers on digital channels, and today it stands at 7.24 million.

Total customers have risen from 5.38 million in the second half of 2019, to 8.03 million as at June 2021.

FCMB’s digital payment revenue stood at N6.70 billion as at June 2021, which represents 11 percent of gross revenue and 51 percent of gross fees and Commissions.

The lender said its mobile, cards and alternate channels payments are driving the strong retail digital revenues and it will continue to see traction.

It sees a lot of market opportunities from its Merchant Solutions and Web Payments, as it replicates the retail side’s success to its SME, commercial and corporate customers.

This year, FCMB launched a paperless transaction process that allows customers to meaninglessly   carry out transactions using fingerprints and Bank Verification Numbers (BVNs). with the newly paperless transaction process.

With the paperless and cardless transaction, customers no longer require deposit slips, withdrawal booklets, or cheque books to carry out over-the-counter transactions.

Analysts have unanimously agreed that digital banking is pivotal to transforming Nigeria’s financial landscape, spur economic growth.

The introduction of Automated Mobile Transaction (ATM) and mobile money accelerated transactions and significantly shrunk the number of customers in the baking hall.

In 2019, Nigeria recorded over 370 million mobile money transactions from 15.3 million customers.

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