The growing adoption and investment in financial technology has earned 11 deposit money banks about N124.5bn revenue from electronic transactions in 2018.
Nigerian banks have continued to introduce digital products into the financial sector and their operations, organising hackathons in order to develop tech solution to address problems in the industry, sponsoring innovation competitions and introducing chatbox and Whatsapp banking to improve user experience.
All these are believed to have contributed to the growth experienced in the revenue from electronic transactions by the banks.
Analyses of the audited 2018 annual reports of 11 banks showed their revenue from electronic transactions grew by 43 per cent year-on-year from the N86.72bn earned by the financial institutions in 2017.
The revenue was generated from the fees and commission that the banks charged their customers when they carried out transactions through Automated Teller Machines, USSD, Internet banking, Point of Sale payments and agency banking.
Some of the banks assessed are Zenith Bank Plc, First City Monument Bank Plc, Access Bank Plc, Guaranty Trust Bank Plc, United Bank for Africa Plc, Sterling Bank Plc, First Bank of Nigeria Limited and Fidelity Bank Plc.
Others are Jaiz Bank Plc, Union Bank of Nigeria Plc, and Wema Bank Plc.
First Bank earned the highest income on its electronic products in 2018, reporting N34.03bn revenue, a 36 per cent increase in revenue from N24.99bn in the corresponding period of 2017.
UBA ranked second, reporting N27.92bn revenue from electronic transactions, a 33 per cent increase from the N20.92bn generated during the same period in 2017.
With N20.42bn revenue, Zenith Bank reported a 44 per cent increase in its electronic banking income in 2018 as against N14.15bn earned in 2017.