First Bank Makes N28 Billion From Electronic Bank Charges In H1

First Bank of Nigeria (FBN) Holdings Plc has made about N28 billion from electronic transactions in the first half of the year.

From the bank's unaudited financial statement for the first half of the year, it was discovered that revenue from e-banking increased by 32.7% year-on-year from the N21.72 billion recorded in the corresponding period of last year.

One of the ways banks generate money is from digital transactions by customers as they charge commissions/fees on the use of mobile applications, Automated Teller Machines (ATM), USSD channels, internet banking, Point of Sales (POS) payments, and agency banking.

The increase in electronic banking fees was pivotal to the growth recorded in the bank’s overall fee and commission income which grew by 18.46%, from N55.78 billion recorded in the first half of 2020 to N69.08 billion posted in the corresponding period of this year.

Earlier this year, the Central Bank of Nigeria (CBN) imposed a policy that mandated Nigerians to pay a compulsory N6.98 on every USSD transaction.

On the other hand, several Nigerians are now beginning to seek cheaper alternatives, as digital banks are rising in the banking space, charging minimal to even zero fees for electronic transactions.