Kayode Tokede
Despite fierce competition from Fintechs, individuals and institutions are increasingly entrusting their funds into the safekeeping and management of Nigerian banks as total deposits in the banking sector increased to N115 trillion in 2023 financial year, about 63 per cent growth from N70.5 trillion reported in 2022 financial year.
This is according to THISDAY analysis of the 3023 audited results of banks operating in Nigeria, which showed an aggressive increase in low-cost deposits amid severe challenges posed by Fintech companies.
Nigerian banks have in the last few years faced fierce competition from Fintech companies such as; MoMo Payment Service Bank (MoMo PSB), Fintech subsidiary of MTN Nigeria. Airtel SmartCash, PiggyVest, Opay, Palmpay, among others that offer lucrative interest rate on deposits.
As technology evolves, customer demands continue to affect how businesses operate especially in the banking sector.
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Source: Thisday Newspaper
