E- Banking income: GTBank, UBA, Zenith Bank generate N37bn in 2015

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By Kayode Tokede

With the Central Bank of Nigeria’s policy on Commission on Turnover (CoT) phase out, Deposit Money Banks (DMBs) in the country have leveraged on income generation using electronic banking.

For instance, three DMBs in 2015 financial year generated N37 billion, over 89 per cent or N17 billion (N19.6 billion in 2014) through the deployment of innovative electronic banking platforms that had aided easy electronic banking.

Details gathered by Nigerian NewsDirect revealed that Guaranty Trust Bank Plc (GTBank) in the year under review recorded a growth of   221 per cent in E-business income from N5.2 billion in 2014 to N16.6 billion in 2015.

United Bank for Africa Plc (UBA) E-banking related income stood at N17.2 billion in 2015, 46 per cent above N11.76 billion generated in 2014.

Of the N37 billion generated by the three DMBs in 2015, Zenith Bank contributed 8.8 per cent when its E-banking income stood at N3.26 billion in 2015 from N2.7 billion the prior year.

In a plan to phase out CoT, the CBN had specifically directed all banks to reduce CoT from its current rate of N3/mille in 2013 to N2/mille by 2014m and N1/mille by 2015.

The regulatory body’s  policy on CoT has continued to erode bank fees and commission income, forcing banks to derive income generation through E-Banking.

The chairman of UBA Plc, Mr. Tony Elumelu at the bank’s Annual General Meeting in Lagos on last  Friday, said new economy based on mobile devices is emerging, as Africa  represents the largest internet user base in the world, which continues to grow at a very rapid pace.

According to him, we are seeing the increasing emergence of new technology-based businesses, driven by entrepreneurs who are capitalizing on the opportunities of this new digital, mobile world.

“In addition, increased transaction banking income compensated for the regulatory-induced weaknesses in CoT. More importantly, our bank managed its cost through the year, thus preserving bottom-line earnings to deliver a profit before tax of N68.5 billion, which translates to 21 per cent growth over our performance in 2014,” Elumelu added.

Also speaking with shareholders at the AGM, The Group Managing Director/Chief Executive Officer, UBA Plc, Mr. Phillips Oduoza noted that the bank has been pursuing a strong innovation agenda, driven by a desire to shape the future of banking.

In his words, “We recognize that evolving customer behaviours as well as the rising usage of social media and smart devices are rapidly changing the way banking is done.

During the year, we launched a redesigned and intuitive internet banking website and new mobile website. Together with our comprehensive mobile banking application, ‘UMobile’, these platforms are seeing robust growth in transactions. We also launched a contactless, ‘Tap n pay’ card payment solution, which enables customers to simply tap their cards for quicker payment transactions.

“We have a strong presence in social media through banking on facebook, which we further strengthened by becoming the first bank in Nigeria to introduce banking alert services on Twitter.

He added that UBA has invested in corporate Internet and mobile banking platforms to improve customer experience and to provide value-added solutions to the Corporate, Commercial and Public sector.

On his own part, the Managing Director/CEO, GTBank, Mr. Segun Agbaje at the Bank’s AGM in Lagos, said the Bank had recorded tremendous growth rates in customer adoption of digital services.

He expressed that GTBank would continue to be a bank of choice for digitally savvy customers.

He said, “Understanding that customers are always on the move; mobile banking puts us in the palm of our customers and provides a unique opportunity to offer quick and more efficient ways of providing banking services.

“Thus, we extended our mobile banking offering with the introduction of the 737 banking; a platform that allows customers transfer funds from any bank in Nigeria, buy airtime, pay bills, link their BVN, and check account balances using their mobile devices.

 

“The 737 Banking platform provides us with an array of endless opportunities tp partner with stakeholders, drive customers interactions and improve efficiency.”