Fintech Growth and Downtime Cut Banks’ E-Business Revenue to ₦209.3bn
Nigeria’s biggest banks have seen their electronic business income fall slightly this year as growing fintech competition and system downtimes continue to challenge their digital operations.
According to data from the financial reports of United Bank for Africa (UBA), First Holdings, Zenith Bank, and Guaranty Trust Holding Company (GTCO), the combined e-business income dropped to ₦209.34 billion in the first half of 2025. This figure is 2.64% lower than the ₦215.01 billion recorded in the same period last year.
E-business income includes money earned from mobile and internet banking, Point of Sale (PoS), ATMs, and card transactions. Among the four major banks, only First Holdings recorded growth, while others experienced a decline.
UBA maintained its leadership in e-business income with ₦100.50 billion, though this was slightly lower than last year’s ₦106.15 billion, showing a 5.32% drop. First Holdings recorded ₦43.83 billion, a strong 24.77% increase from ₦35.13 billion in 2024. Zenith Bank made ₦36.40 billion, down by 11.72% from ₦41.23 billion, and GTCO earned ₦28.61 billion, an 11.97% decrease from ₦32.50 billion last year.
Experts say the fall in income shows how fast fintech companies like OPay, PalmPay, and Moniepoint are reshaping Nigeria’s digital payment landscape. These fintechs attract millions of users by offering smooth, fast, and low-cost transactions — often with fewer downtimes than traditional banks.
Many customers have shifted their loyalty to fintech platforms because of frequent app errors, failed transactions, and slow reversal times on bank apps. Analysts also point to regulatory changes from the Central Bank of Nigeria (CBN) that have introduced new compliance rules and capped transaction fees, further squeezing banks’ margins.
Financial analyst Biodun Ademola said the dip reflects a “shift in consumer loyalty toward fintechs that understand customer experience and digital culture.” Economist Doris Odion added that fintechs now dominate low-value, high-volume transactions once controlled by banks, urging collaboration instead of competition.
Capital market expert Chidebere Okoye described the decline as a warning for banks to improve reliability and cybersecurity. “With tighter regulations and capped fees, banks can only grow through innovation and efficiency,” he said.
Despite the drop, e-business still plays a crucial role in non-interest income for Nigerian banks. Experts agree that partnerships with fintechs, stronger digital infrastructure, and innovation will be vital for banks to regain trust and stabilize growth in the second half of 2025.
