e-banking is unquestionably the most revolutionary part of banking history till date. Apart from the convenience it brought to bank customers by allowing them to have 24 hours access to banking transaction, it also assists banks to move their customers to alternative banking channels and away from the banking halls with the attendant cost saving effect.
From ATM to online and mobile banking and recently USSD to WhatsApp banking and most recently Agency banking and deployment of AI by some banks. Bank customer seems to have won the convenience banking war with e-banking and may operate their bank accounts without visiting the bricks and mortals perhaps forever.
But most certainly the biggest gainers in this still evolving revolution are the banks, as income from alternative banking channels also known as e-banking continue to sour without any negative effects on the traditional income sources of banks.
Account Maintenance Fees (AMF), Income from Foreign Exchange Transactions, Interest from Loans and other Contingent Liabilities, Interest earned from Interbank Placement and Treasury operations are some of the traditional income sources for bank that were never affected by the rise in e-banking products and usage.
Four (4) out of the five (5) banks that have presented their 2018 FY financial reports (Zenith bank, UBA, Access bank and Stanbic IBTC bank) made N62.25 billion from electronics products in 2018.
This figure is about double what these 4 banks made from traditional income sources like Account Maintenance Fee (N34.2 billion) and Foreign Exchange Transactions (N32.5 billion) for the year ended December 2018.
United Bank for Africa (UBA) leads the pack with income of N27.9 billion, while Zenith made N20.4 billion and Access and Stanbic IBTC made N8.3 billion and N3.5 billion respectively.
- SMS – SMS Alert.
- USSD – Transfer charges, Balance enquiry, Statement request, Airtime top-ups, Bill payments.
- ATM – Card issuance, other bank ATM usage, Transfer charges, Airtime top-ups, Statement request, Bill payments.
- Online/Mobile banking – Transfer Charges, Token request charges, Airtime top-ups, Statement request, Bill payments.
- Agency Banking – Percentage of agency charges for Withdrawals, Deposits, Bill payments and more