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Business News

Access Bank spends N18.7 billion on digitization in 2020

Access Bank topped its spending on digitalization to enable it compete.

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Access Bank Plc, Nigeria's Creative Industry needs urgent financing from commercial banks to bridge unemployment gaps - Herbert Wigwe

Nigeria’s largest bank by assets, Access Bank revealed it spent a whopping N18.7 billion in IT and E-Business related initiatives in 2020. The figure is nearly double (92% higher) the N9.7 billion spent in 2019. The same expense line cost it N11.39 billion in 2018.

The bank claims the expenses is in line with its “investments in IT capability with the focus of improving customer experience and to support digitization,” a strategy the bank believes will help it to compete better.

Access Bank reported a spike in revenue from its digital channels posting a revenue of N56.1 billion, a 58% increase from a year earlier. Income from digital channels were N36 billion and N14.2 billion in 2019 and 2018 respectively.

This year, the bank also invested about N10.2 billion on intangible assets out of which N8.49 billion went into purchasing software. Banks also rely heavily on software applications to service their customers and drive operations.

READ: Jobs at risk as digitalisation takes its toll on Standard Chartered expansion plans

Commercial banks in Nigeria have invested heavily in expanding their digital products amidst an onslaught of competition from FinTechs who are innovating faster and cutting into market share. However, big banks like Access Bank have the financial muscle to compete in this space as buttressed by Access Bank’s spending.

For banks like Access Bank, the focus is to drive financial inclusion and retail customer acquisition through channels such as USSD, Mobile Banking, TelCos and other forms of digital platforms. Access Bank claims these moves have yielded benefits as it recorded improvement across its financial inclusion initiatives.

Access Bank claims its total digital transaction value rose to N33.89 trillion in 2020 made up of 1.6 trillion transaction counts. It also opened 3.6 million new accounts via its Telco partnerships and that it now has 40 million customers out of which 17 million are mobile users (USSD & Mobile).

READ: USSD service disruption: MTN to use Flutterwave, Opay, Kuda, other payment channels

As the bank explains “our Retail Banking business has grown consistently across all income lines, driven by strong focus on consumer lending, payments and remittances, digitization of customer journeys, and customer acquisition at scale.”

The bank also claims it created 4 million digital loans in the year and it disbursed N105 billion in loans via its digital lending platform generating a 48% year on year growth. It generated N5 billion in revenue from digital lending a 49% growth year on year.

Access Bank is included in our Stock Select Recommendation Portfolio. Find out what our preferred entry and exit price is and what to look out for should you decide to own this stock.

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

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    Tip Jar, Twitter’s new giveaway feature that lets users send money to you

    Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

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    US Elections: Twitter, Facebook suspend several news accounts

    Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

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    Users can link their Twitter accounts with Tip Jar to any of these payment providers. Twitter takes no cut.

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    You’ll know an account’s Tip Jar is enabled if you see a Tip Jar icon next to the Follow button on their profile page. Tap the icon, and you’ll see a list of payment services or platforms that the account has enabled. Select whichever payment service or platform you prefer and you’ll be taken off Twitter to the selected app where you can show your support in the amount you choose.

    Twitter has released series of features this year as part of its efforts to grow Twitter’s user base to 315 million daily active users by the end of 2023.

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    Lauren Alexander, a Twitter spokesperson said, “Today’s launch is a direct result of the feedback people shared with us last year that the way our algorithm cropped images wasn’t equitable, The new way of presenting images decreases the platform’s reliance on automatic, machine learning-based image cropping.”

    Twitter has tested several features and more will be rolled out soon.

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    Business

    Customs Apapa Command generates revenue of N65.4 billion in April

    This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

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    Border closure: Amid N5bn daily revenue, Customs officials lament allowance slash  

    The Nigerian Customs Service (NCS) Apapa Area Command has announced a revenue of N65,463,398,355.85 for the month of April—an increase of N25,585,561,139.92 compared to the same period last year.

    This was disclosed by Comptroller Ibrahim Yusuf, Area Controller of Apapa command, in a press briefing on Thursday.

    What Ibrahim Yusuf is saying

    “This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

    In line with the provision of extant laws, trade guidelines, and enforcement of government fiscal policy measures, the command was able to further strengthen its anti-smuggling operations against economic saboteurs through credible intelligence-driven operations.

    READ: Customs revenue rises by N200 billion to hit N1.5 trillion in 2020

    This led to the seizure of 4×40 feet containers laden with unregistered pharmaceuticals (674 cartons of tramadol tablets in 225mg and 120mg, and 805 cartons of codeine syrup in 100ml) at APMT and SIFAX 3 bonded terminal respectively.

    Other items seized in the period under review include: two containers of unprocessed wood and one container of scrap copper wire,” he said.

    He added that the progress the Apapa Command made in the month of April was possible due to the resilience of the officers, citing that the Command had taken steps to ensure efficient revenue collection by creating an enabling environment for legitimate businesses to thrive.

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    Recall Nairametrics reported that the Nigeria Customs Service (NCS) Apapa Command stated earlier that it generated a revenue of N159.58 billion in the first quarter of 2021.

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