Zenith Bank Plc recorded a remarkable growth in both value and volume of electronic product transactions, as on-line banking continues to add impetus to profit.
The growth in electronic products validates the company’s investment in the state of the art technology as the industry is under threat from financial technology (Fintech) firms and other digital banks that are gradually cannibalising sales.
Zenith Bank saw the value of electronic product transactions rise by 22 percent to N103.73 billion as at December 2022 from N85 billion the previous year.
The number of electronic product transactions stood at 2.21 million as at December 2022, which is 14 percent higher than 2021’s 1.95.
A breakdown of this figure shows the value of mobile banking transactions increased by 21.70 percent to N46.04 billion as at December 2022 from 37.83 billion the previous year. Number of mobile transactions was up 21.55 percent to 705 million from 580 million the previous year.
The value of internet banking transactions was up 29.22 percent to N44.75 billion in the period under review from N34.63 billion the previous year. Number of internet banking transactions rose by 34.37 percent to 86 million in December 2022 from 64 million the previous year.
In 2020, the coronavirus pandemic that disrupted business accelerated online banking as customers who were unable to go to the banks were forced to carry on transactions using their smartphones.
Of course, the central bank’s cashless policy is pivotal to increase revenue from digital divisions.
However, the banking industry is beset by intense competition from disruptors like financial technology firms and digital banks who are leveraging on a youthful population, increase in smartphone penetration and focus on financial inclusion and focus on cashless society by the regulator to consolidate their share of the Nigerian digital market.
Between 2014 and 2019, Nigeria’s bustling fintech scene raised more than $600 million in funding, attracting 25 percent ($122 million) of the $491.6 million raised by African tech startups in 2019 alone—second only to Kenya, which attracted $149 million, according to data from global management consulting, McKinsey & Company.
According to a 2022 press release, Nigeria recorded 3.7 billion real-time payments in 2021, earning the sixth spot among countries with the biggest real-time payments markets.