Fintech Competition Fails to Dent Banks’ N984bn Fee and Commission Income

Nigeria’s big lenders who build best-in-class payment solutions that help businesses thrive are making money from electronic banking even amid fierce competition from the financial technology (Fintech) firms.

Banks are investing in technology to drive efficiency, scalability, and digital access, deepening financial inclusion by ensuring that services reach those who live in rural areas.

The eight largest banks made N983.66 billion in fees and commission income in the first six months of 2025, which is 39.90 percent higher than 2024’s N702.84 billion as at June 2024, according to data gathered by MoneyCentral.

Electronic banking is increasing as the country is gravitating towards a full-fledged cashless society as the volume of online transactions has increased as a young population and even traders are using their mobile apps to carry out transactions.

Of course, the currency crisis of 2023 precipitated shortage of currency (Naira) as the government’s short notice for people to start using the new currency notes it introduced significantly accelerated the adoption of digital transactions by Nigerians who were despondent.

Aside from the introduction of applications that are easy to use, some banks have launched banking platforms that offers services for entrepreneurs and small and medium businesses.

Zenith Bank generated N128.06 billion in fees and commission; Access Holdings, (N204.70 billion*); Guaranty Trust H0lding Company, (N135.17 billion); FirstHoldco Plc, (N138.69 billion); United Bank for Africa, (N147.04 billion); Stanbic IBTC, (N114.30 billion); FCMB Plc, (N37.91 billion); Fidelity Bank, (N32.05 billion), and Wema Bank, (N45.37 billion).

However, the financial technology companies that are sprouting like mushrooms are disrupting the conventional banking model by using technology making financial operations more easier for businesses and students.

These fintech firms wooed customers with lower charges and seamless services. One in 5 people uses payment plateforms such as OPay, Moniepoint, Palmpay and a host of others.

“A youthful population, increasing smartphone penetration, and a focused regulatory drive to increase financial inclusion and cashless payments, are combining to create the perfect recipe for a thriving fintech sector,” said analysts at accounting services and research firm McKinsey and Co.

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 McKinsey and Co.

Anchor, an embedded finance startup, hit N1 trillion ($652 million) in processed transactions across more than 1.5 million transactions, serving more than 400 businesses.

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