Zenith Bank Plc is taking advantage of the proliferation of smartphones and youthful population to strengthen electronic banking products performance.
There has been remarkable growth in transaction volumes and value across digital platforms and strong growth in customer acquisition, as Zenith Bank continues to provide seamless service to rural dwellers while increasing financial inclusion in a country where 40 percent of a population of 200 do not have a bank account.
Of course, the largest lender by profit in Nigeria has been enhancing propositions across the value chain to address pain points in affordable payments, quick loans, and flexible savings and investments, among others.
For the year ended December 2021, Zenith Bank saw the value of electronic product transaction spike by 73 percent to N85 billion in December 2021 from N49.17 billion as at December 2020.
A breakdown of the figure shows revenue or value of mobile bank surged by 76.07 percent to N37.83 billion in the period under review from N21.49 billion the previous year.
Internet banking spiked by 60.92 percent to N34.63 billion in December 2021 from N21.52 billion as at December 2020.
Interestingly, the total number of transactions increased by percent to 1.95 1.95 billion in December 2021 from 1.15 billion the previous year.
A breakdown of the number of transitions shows mobile banking was up 63.41 percent to 584 million in the period under review from 354 million as at December 2020.
Zenith Bank’s net income has been bolstered in recent years by non-lending business.
Fees and commission income increased by 31.03 percent to N103.95 billion in December 2021 from N79.33 billion the previous year.
The lender is ramping up spending on information and communications technology (IT) as the industry is increasingly reliant on emerging digital technologies to attract and retain customers.
It spent N28.15 billion on information technology, which is 40.45 percent higher than 2020’s N20.44 billion.
Banks face immense challenges from Fintech firms who are poised to cannibalize on sales using latest technology and user-friendly products to attract young customers who are underserved.
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 a report by McKinsey.
There are untapped opportunities as the country’s digital space is still in the embryonic stage.