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  • Business - Companies
  • Updated: October 26, 2022

Banks Spend N82 Billion On Communications, IT Services

Banks Spend N82 Billion On Communications, IT Services

For the first half of 2022, ten commercial banks have spent about N81.92 billion on communications as well as Information Technology services

The financial reports of the banks show that this is a 58.69 per cent increase from the N51.62 billion spent by the banks on the same services in the corresponding period of 2021.

During the period under review, Access Bank spent N26.83 billion on communication expenses, IT, and e-business expenses

Sterling Bank had the least expense of the banks. It spent N961 million on communication costs in the period under review.

According to the data, Guaranty Trust Holding Company and subsidiary companies spent N9.33 billion on communications, technological-related expenses, and administrative expenses.

Zenith Bank Plc spent N19.94 billion on telephone, postages, communication charges, and information technology expenses, while First Bank Nigeria Holding Plc grouped spent N7.58 billion on its communication, light, and power expense

During the period under review, the United Bank for Africa spent N4.73 billion on communication, IT support and related expenses, Wema Bank spent N1.19 billion on technology and alternative channels, as well as transport and communications.

Fidelity Bank spent N1.01 billion on telephone and computer expenses, while Stanbic IBTC Holdings Plc spent N6.78 billion on information technology and communication expenses. Union Bank of Nigeria spent N3.56 billion on software.

An ICT expert and Senior Partner of e86 Limited, Olugbenga Odeyemi, said, “A recent report on the Nigerian banking sector shows an increase in the adoption and use of electronic banking platforms over the same period you mentioned.

“More usage is expected to increase both expenses and revenue on the side of the platform owners.

"So, it is a good thing. There is also the angle of implementing more security features and expanding into new markets.

"I think the growth is good for both the banking and tech sectors.”

According to Odeyemi, banks were not only spending on technology but also on mitigating tech talent attrition.

“The ongoing mass exodus from the country is also affecting the banking sector.

"Most of their good and reliable hands have left the country for opportunities in other countries.

"This is true, especially for tech hires within the banking sector.

“So, the need to spend more is not just about spending more on the latest technologies, it’s also important to review their staff welfare, especially those within their tech spaces and those managing their electronic platforms.”

 

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