UBA, Access, FBN Holdings, 8 other banks’ E-banking profit hits N132.5bn


By Ayobami Adedinni

In spite of the tough operating business environment that impacted negatively on the performance of many Deposit Money Banks (DMBs), 11 of them generated N132.5billion through the Electronic banking (E-Banking) transactions in 2016.

Banks continued to support Central Bank of Nigeria (CBN)’s cashless policy with the introduction of various initiatives that include Mobile Applications (Apps) that tends to enhance ease of transactions online and reduce customers’ transaction inside the banking hall.

The considered banks in 2015 had generated a total sum of N94 billion with mostly Tier 1 Banks ( Banks with strongest total quality, branches network and staff strength) that include United Bank for Africa, Access Bank Plc and Guaranty Trust Bank Plc contributing mostly.

These Banks’ Electronic banking charges comes from customers transactions on Mobile Apps and online related transactions.

For the year under review, United Bank for Africa tops other 10 DMBs with N30.4 billion generated from its E-business income, 77.3 per cent increase over N17.2 billion reported in 2015.

Closely followed was Access Bank plc that reported N21.3 billion generated from its E-banking transaction in 2016 from N3.9 billion reported in 2015.

UBA in 2016 leveraged on it E-banking that U-Direct, U-Mobile, U-Social, ATMs, Cards products among others and new corporate solutions to grow non-funded income lines.

Other E-business products owned by UBA are Cash Fast, UBA Remit, Western Union and MoneyGram. UBA also recently updated its mobile banking app with many user friendly features.

The GMD/CEO UBA, Kennedy Uzoka, had said, “UBA’s new Mobile Banking App demonstrates our resolve to provide unparalleled experience across all its channels It is in line with UBA’s vision to dominate Africa’s digital banking space.”

For First Bank of Nigeria Holdings Plc, the group E-income rose by 42 per cent from N15.37 billion in 2015 to N21.8 billion in 2016, followed by Stanbic IBTC Holdings Plc that reported 57 per cent increase in E-income from N3.3 billion in 2015 to N5.2 billion in 2016.

Subsidiary of First Bank of Nigeria Holdings, First Bank of Nigeria Limited has been in the fore front of the mobile banking revolution.

The bank subsidiary of the Holdings Company was one of the pioneers of the USSD platform which is used to transfer money via a text messaging application of a mobile phone.

First Bank also owns an app called First Money which does not require its customers to have bank accounts to transfer money or make transactions. First Bank also uses Western Union, MoneyGram, Ria Money and TransFast for money transfers.

For the year under review, Union Bank of Nigeria’s E-income rose by 209 per cent to N2.2 billion in 2016 as against N715 million in 2015.

Diamond Bank Plc and Fidelity Bank Plc reported 15 per cent and 29 per cent increase in E-banking to N14.95 billion and N9.2 billion in 2016 compared with N4.96 billion and N7.2 billion reported in 2015.

Diamond Bank Mobile apps has about 1 million downloads and has been reviewed 197 times by its users.

Zenith Bank Plc’s E-banking income thus inched up by seven to N10.58 billion from N9.98 billion in 2015 while GTBank’ E-income income dropped by 26.4 per cent to N12.2 billion as against N16.58 billion recorded in 2015.

In addition, First City Monument Bank Plc announced about nine per cent decline in its E- banking income from N13.66 billion in 2015 to N14.9 billion in 2016.

With higher proportion of youths as its customer’s base, GTBank continued to improve on its E-banking space.

The bank recently launched GTWorld, a mobile banking app that is designed to cater to all that’s important to customers easily and seamlessly.

GTWorld empowers customers, like never before, to make payments and access in-branch services swiftly and seamlessly, without going to a branch. Some of the App’s, amongst several others. When switched to GAPS-Lite, the app offers small business owners access to real-time monitoring of all transactions and the ability to make bulk and single transfers on the go to any account in the world.

 Commenting on the launch of GTWorld App, the Managing Director of GTBank, Segun Agbaje,  said, “We are delighted to be at the forefront of digital banking solutions that are making banking faster, easier and safer for our customers. The Simplicity of GTWorld and innovations such as facial recognition and fingerprint also ensure that our customers enjoy a seamless experience, anywhere, anytime and anyhow they choose to bank.”