Zenith Bank Group, one of Nigeria’s largest financial institutions, has recorded significant growth in its digital banking infrastructure, particularly in its point-of-sale (POS) and Automated Teller Machine (ATM) networks, as it continues to battle rising competition from fintech challengers.
According to the bank’s latest financial disclosures, the number of POS terminals deployed by the group rose by 14.8% year-on-year, from 414,192 in 2023 to 475,524 in 2024.
These terminals, typically issued to merchants to facilitate retail transactions, have become an important source of commission-based income for traditional banks.
However, this space has become increasingly competitive, particularly with the rise of fintech-driven banks such as Moniepoint, Opay, and Palmpay.
These players have captured significant merchant market share by offering lower transaction fees, faster onboarding processes, and user-friendly technology.
Their growing dominance has disrupted the traditional acquiring business model and forced banks like Zenith to step up innovation and distribution.
ATM infrastructure sees moderate growth
Zenith Bank also reported that it issued a total of 27.94 million ATM cards as of 2024, reflecting an 8.9% increase compared to the 25.65 million cards issued in 2023.
- In tandem with this, the number of ATM terminals operated by the bank grew marginally by 1.5%, from 2,102 in 2023 to 2,134 in 2024.
- To put this in context, data from the Central Bank of Nigeria (CBN) shows that Nigeria had a total of 16,714 ATMs nationwide as of 2024.
This means Zenith Bank controls approximately 12.7% of the national ATM infrastructure, solidifying its position as one of the top players in the physical banking access segment.
Rising consumer dissatisfaction amid higher withdrawal fees
Despite the expansion, Nigerian consumers have expressed growing frustration over the cost and reliability of ATM services.
A recent circular from the Central Bank, which increased charges on cash withdrawals from ATMs and other channels, has led to public outcry.
Critics argue that the move disproportionately affects low-income Nigerians who rely on physical cash and have limited access to digital banking channels.
Branch expansion continues cautiously
- In terms of physical presence, Zenith Bank continued its cautious branch expansion, opening seven new branches in 2024, which brings its total to 454 branches, up from 447 in the previous year.
- The number of cash centres—designated locations that handle only basic cash transactions—also saw a slight increase, rising to 167 from 166.
- This expansion suggests that while digital infrastructure remains the bank’s key growth area, Zenith still sees value in maintaining a robust physical footprint—especially in underserved areas where digital adoption may be low.
What this means for Zenith Bank
- The bank’s strategic push in expanding both its digital and physical channels reflects a balancing act between deepening financial inclusion and defending market share from nimble fintech competitors.
- With over 27 million ATM cards in circulation and close to half a million POS terminals, Zenith is clearly investing in infrastructure to drive retail transactions.
- But sustaining profitability in this segment may depend on how well the bank can innovate its value proposition to merchants and consumers—particularly as fintechs continue to reshape Nigeria’s retail payments ecosystem.
- As more Nigerians shift toward digital wallets and agency banking, the question remains: Can traditional banks like Zenith keep up with the pace of innovation, or will they be relegated to just the back-end infrastructure of Nigeria’s fast-evolving payment landscape?
