Nigeria’s banking industry’s digital leap marked a turning point in 2021 – Analyst, Onyenaucheya

Nigeria’s banking sector experienced a watershed moment in 2021 as digital transformation became the key driver of growth, according to financial analyst Ogechukwu Onyenaucheya.

Onyenaucheya noted that the year separated forward-looking institutions from those hesitant to embrace change, with innovation proving to be a decisive factor in performance.

“Banks that embraced technology saw significant rewards: higher earnings, stronger customer loyalty, and greater market relevance,” Onyenaucheya said. “Those that failed to adapt faced declining engagement and a real risk of being left behind.”

“Guaranty Trust Holding Company (GTCO), Access Bank, and Zenith Bank led the industry’s digital charge. GTCO strengthened its mobile and USSD platforms, allowing customers to transact without visiting a branch. Access Bank leveraged its merger with Diamond Bank to achieve some of the industry’s highest electronic transaction volumes, while Zenith Bank combined corporate strength with retail-focused solutions to maintain its leadership position.

“Data from the Nigeria Inter-Bank Settlement System (NIBSS) confirmed the success of these strategies. The total value of electronic payments surged from ₦162.89 trillion in 2020 to ₦278.38 trillion in 2021: a 71 percent increase in just one year. Instant payments reached ₦271.95 trillion, up from ₦158.16 trillion, while Point-of-Sale transactions hit ₦6.43 trillion across nearly one billion transactions. Together, leading banks including Access Bank, Zenith Bank, GTCO, and UBA earned over ₦215 billion from e-banking in 2021, up from ₦159 billion in 2020.”

Onyenaucheya warned that for banks that resisted these changes, the experience was far less positive. Outdated systems and poor digital offerings drove customers to more innovative competitors, while the pandemic accelerated demand for contactless and remote banking services.

“The lessons from 2021 are still relevant today,” she said. “Technology is no longer optional. It is the fastest route to financial inclusion, a driver of revenue growth, a cost saver through automation, and a key builder of customer trust.”

With fintechs and global digital players expanding their presence, Onyenaucheya stressed that Nigerian banks must act with urgency.

“The question is no longer whether to innovate but how quickly they can do so. The market has already moved online, and the potential is enormous. Technology is not just an option for Nigerian banks, it is their future.”