Nigeria’s largest bank (by customer base and total assets) raked in a whopping N29.9 billion from its Channels and E-Business Income in 2020 representing a 37% growth from the same period in 2019. The bank reported a then-record N21.8 billion from its E-Business Income.
The bank’s E-business Income now contributes about 40.5% of Fees and Commission Income compared to 42% same period last year. The bank’s Fees and Commission Income were N73.7 billion in June 2021 compared to June 2020.
Nigerian banks raked in about N216 billion in E-Business Income in 2020 with Access Bank topping the chart with about N56.09 billion up from N36 billion in 2019. The bank is thus growing slower than it did in 2020, however, the numbers are staggering. In fact, it’s still early days as its channels and e-business income earnings was just N13.9 billion same period in 2020.
Access Bank became the largest bank in the country after it merged with Diamond Bank, a leading tech-focused commercial bank which was a major attraction for Access Bank when deciding the merger. Since the merger, the bank has seen its deposits rise to N7.7 trillion from about N3.5 trillion in 2018, when the merger was first revealed. The revenue base is perhaps the major driver for the growth of its E-Business Income.
Nigeria has been experiencing a massive boost in electronic-driven banking as increasing mobile phones adoption and viral social media lead to massive consumption of data and spending across several channels.
The banking sector is also benefitting massively from the wave of mobile phone adoption proving easy to use banking apps that are secure and operate seemingly like social media apps.
We believe mobile banking adoption will rise to become a significant source of revenue for Nigerian banks especially through data monetization, an aspect of revenue they are yet to leverage.