Seven leading Nigerian banks generated a combined N132.45 billion from e-business operations in the first half of 2024, marking a significant rise as digital banking continues to gain traction.
Analysts say this surge reflects not only the growing adoption of electronic payments but also an increase in competition and cybersecurity risks for the financial sector.
Zenith Bank emerged as the leader, posting N41.2 billion in e-business revenue, an 85.6 per cent jump from the N22.2 billion recorded in the first half of 2023.
Financial analyst Olufemi Adesanya explained, “Zenith’s rapid growth in e-business income demonstrates the bank’s success in leveraging digital channels to attract and retain customers, but it also signals increased operational risks, including cyber threats.”
FBN Holdings followed with N35.1 billion, a modest 3.2 per cent rise from last year, while GTCO saw an impressive 53.3 per cent increase to N32.5 billion.
FCMB, Wema Bank, and Sterling Financial Holdings also recorded gains, with Wema’s 96.8 per cent rise being the most notable.
“Wema Bank’s success highlights the effectiveness of its ALAT platform, which has become a key player in Nigeria’s digital banking ecosystem,” said Dipo Alabede, CEO of Clane, a mobile payments firm.
However, as banks expand their digital offerings, the risk landscape evolves.
Alabede emphasized the growing need for banks to invest in cybersecurity: “The rise in digital transactions comes with a surge in cyber threats. From phishing to ransomware, banks must invest heavily in security measures to safeguard their customers.”
To keep pace with this digital transformation, banks have significantly ramped up their IT spending.
Zenith Bank increased its IT investment by 167 per cent, from N8.6 billion in the first half of 2023 to N23 billion in 2024.
Similarly, GTCO more than doubled its IT expenditure to N36.6 billion, and Stanbic IBTC and FCMB also saw significant rises.
According to Onafriq’s Chief Technology Officer, Tayo Ogunlade, “Banks need to not only scale up IT infrastructure but also collaborate to mitigate cybersecurity risks. With everyone interconnected, the weakest link becomes the biggest threat.”
The growing competition from fintechs and the introduction of new technologies like blockchain and artificial intelligence (AI) also present challenges.
