UBA leads as Nigerian banks’ earning from cashless transactions hit N279bn

Analysis of Nigeria’s leading banks financial reports indicated that United Bank for Africa earned the highest from electronic fees, raking in N75.75bn in the first nine months of 2023 as banks profits from cashless transactions increased to N279.85bn.

This represents a 29.89 per cent increase when compared to the N215.44bn raked in in the corresponding period in 2022 by the banks.

Findings revealed that the jump may not be unconnected with the naira redesign policy introduced by the Central Bank of Nigeria in 2022, forcing many Nigerians to embrace electronic transactions due to scarcity of the naira.

This is in line with the apex bank’s prediction in its Payments Vision 2025 document that stated that “The use of cash will naturally slow with the ‘mobile first generation’, which will be economically active by 2025, hence one of the focuses of the PSV 2025 is enhancing the cashless policy of the CBN.

According to its financial report, Jaiz Bank made N696.03m, emerging as the lowest earner, though it was a 78.55 per cent rise from N389.82m in the prior year.

In the period under review, Wema Bank Plc grew its e-banking earnings by 104.17 per cent to N5.21bn from N2.55bn.

Unity Bank Plc’s earnings declined by 18.44 per cent to N2.22bn from N2.72bn and Zenith Bank’s earnings declined by 6.98 per cent to N33.55bn from N36.07bn.

Fidelity Bank Plc’s electronic banking channel fee rose by 26.92 per cent to N2.85bn from N2.24bn.

United Bank for Africa grew earnings from e-channels by 57.95 per cent to N75.75bn, while Access Holdings Plc revenue from this stream increased by 42.412 per cent to N70.35bn.