10 banks earn 266 billion naira from account maintenance and online banking fees
Ten Nigerian banks made 265.96 billion naira through account maintenance and electronic banking fees in 2020.
This is shown by the analysis of data from the annual reports of the 10 banks. Banks made 79.55 billion naira from account maintenance fees and 186.41 billion naira from electronic banking fees.
The banks examined are Access Bank, First Bank, Guaranty Trust Bank, Zenith Bank, Fidelity Bank, Sterling Bank, Wema Bank, Union Bank, United Bank for Africa and First City Monument Bank.
Among the banks examined, Zenith Bank got the most out of bookkeeping with Naira 21.99 billion while Wema did the least with Naira 1.25 billion.
Access Bank collected the most from electronic banking with N52.20bn while Fidelity Bank did the least with N2.46bn.
In 2020, First Bank generated N12.80 billion from account maintenance and N48.68 billion from electronic banking fees. Access Bank made N14.54 billion from account maintenance fees and management fees and N52.20 billion from channels and other e-commerce revenues.
According to Access Bank, e-commerce channels and other revenue includes revenue from electronic channels, card products and related services.
GT Bank made 10.57 billion naira from account maintenance fees and 9.28 billion naira from e-commerce income.
Zenith Bank made 21.99 billion naira from account maintenance fees and 25.56 billion naira from fees on electronic products. FCMB made 3.58 billion naira from account maintenance and 8.61 billion naira from electronic fees and commissions.
Fidelity Bank made 2.8 billion naira from account maintenance fees and 2.46 billion naira from commissions on online banking activities.
Sterling Bank made 1.93 billion naira from account maintenance fees and 4.98 billion naira from commissions and e-commerce fees. UBA made 8.46 billion naira from account maintenance fees and 24.99 billion naira from electronic banking income.
Wema Bank made 1.25 billion naira from account maintenance fees and 2.61 billion naira from fees on electronic products.
Union Bank made 1.63 billion naira from account maintenance fees and 7.04 billion naira from e-commerce fees.
According to the Central Bank of Nigeria’s “Guide to Fees Charged by Banks and Other Financial and Non-Bank Institutions, Current Account Maintenance Fees” apply to current accounts only with respect to debit transactions induced by the Bank of Nigeria. customer to third parties and debit transfers / deposits to the customer’s account in another bank.
The CBN points out that the CAMF is not applicable to savings accounts and is negotiable subject to a maximum of N1 per thousand.
The CBN also added guidelines for online banking. He put N2,500 as the maximum cost for a material token. He said that paying bills, including paying bills through other electronic channels, should cost a maximum of N500. He gave a range of costs for electronic funds transfer.
He said transactions below N 5,000 should cost N 10; transactions between 5,001 N and 50,000 N should cost 25 N, while those above 50,000 N should cost 50 N.
In its 2020 Annual Report, Access Bank said, “Our channel business continued to experience significant growth taking advantage of the digital explosion accelerated by the pandemic.”
The bank added that it had more than 13.1 million retail customers.
Access account maintenance fees defined by the bank as fees charged to current accounts. He said he charges N1 out of every N1,000 for customer-induced debit transactions.
The bank added that the fees were collected by it at the time of each transaction.
GTB in its annual report said, “The COVID-19 pandemic also arose as the Central Bank released a revised guide to bank charges with a significant impact on fees and commission line.
“The bank’s e-commerce revenue reported under the Fees and Commissions line was most affected due to the implementation of the CBN PIN fee guidelines. ”
Many bank customers complain that a number of fees charged by banks, including account maintenance fees, are onerous.
However, a banker who spoke to our correspondent on condition of anonymity questioned the claim.
The banker said: “It costs the bank money to maintain accounts. Once an account is opened, it costs the bank money to maintain it.
“That’s why when a customer doesn’t use their account for a period of time and the account goes dormant, the account is closed.
“It is because the bank does not want to pay for such accounts because it does not bring them anything.”
Holders of savings accounts, however, receive negligible interest on their accounts.
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