In its recently published Q1 2025 financials, Fidelity Bank announced an impressive 23.38% year-on-year increase in letters of credit (LC) commissions, contributing to a broader 30.1% growth in non-interest income, which rose to N23.82 billion.
The performance wasn’t just about lending; it was about a deliberate pivot to optimising income from fee-based services, particularly in the trade finance space.
While many headlines focused on Fidelity’s 167.79% surge in pre-tax profit, the real story, especially for bank executives watching trade revenues, was how the bank quietly built new momentum in its trade finance operations. A key driver behind this: Kachasi, the end-to-end trade finance software developed by Union Systems.
Inside the Kachasi Transformation at Fidelity Bank
Fidelity’s adoption of Kachasi was more than just a software upgrade, it was a strategic overhaul of how the bank processes, manages, and earns from trade finance. By digitising the lifecycle of letters of credit, foreign bills, and related trade instruments, Kachasi removed manual bottlenecks, reduced turnaround time, and improved visibility into obligations and cash flow exposures.
The result? Faster processing for clients. Fewer errors. Greater regulatory compliance, especially with seamless integration into Nigeria’s Trade Monitoring System (TRMS). And most notably, a measurable increase in LC commissions.
This is not an isolated success. It’s a blueprint for any bank looking to turn trade finance into a real engine of growth.
Fidelity Is Not Alone: A Quiet Revolution in Trade Finance
Fidelity may be leading the charge, but it is part of a growing movement. Banks like FCMB, Wema Bank, Coronation Merchant Bank, Rand Merchant Bank (RMB) Nigeria, and more have all deployed Kachasi to modernise their trade finance operations.
Whether driven by regulatory pressures, rising customer expectations, or the need to grow fee-based income, these institutions have realised that digitising trade finance is no longer optional; it’s urgent.
Kachasi’s flexibility allows banks to automate everything from LC issuance and amendment to settlement and post-shipment loans. It supports both domestic and international trade finance processes, making it suitable for banks with diverse client portfolios. Its integration-ready architecture means banks can connect it to internal core banking systems and external regulatory platforms without friction.
Why This Matters Now More Than Ever
Non-lending income has become a critical pillar for banks under pressure from fluctuating interest rates, increased competition, and tightening margins. As Fidelity’s performance shows, the right digital infrastructure doesn’t just support growth, it unlocks it.
At a time when banks must find new levers for profitability, trade finance stands out, and Kachasi has proven to be the digital backbone that enables scale, compliance, and speed.
The question for other banks is not “Should we digitise trade finance?” It’s “How quickly can we do it, and who can help us get it right?”
A Call to Bank Executives
If you’re a C-suite leader at a bank and trade finance is part of your portfolio, Fidelity’s trajectory offers an instructive case. Investing in platforms like Kachasi isn’t just a tech upgrade, it’s a strategic advantage. It’s a path to measurable growth in non-interest income, improved customer experience, and regulatory peace of mind.
The results are in. The tools are available. And the banks that move now will be the ones writing next quarter’s headlines.
