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FCMB tops Tier 2 peers; digital customers hit 6.60 million – report

Analysts disclosed that FCMB’s digital customers stood at 6.60 million as at December 2020, a whopping 100 per cent more than its closest Tier 2 runner-ups

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Ladi Balogun, GCE, FCMB Group
Ladi Balogun, group chief executive, FCMB Group

Analysts from Money Central have said First City Monument Bank (FCMB) Group has a superior number of digital customers compared to its peers in Tier 2.

They noted that the bank has been able to record a double-digit market share growth for alternate channels that deepen financial inclusion in a sector challenged by financial technology disruptors.

FCMB Digital Customer Acquisition

*Digital customer acquisition by Tier 2 banks in Nigeria 

The analysts disclosed that FCMB’s digital customers stood at 6.60 million as at December 2020, a whopping 100 per cent more than its closest Tier 2 runner-ups, including Fidelity Bank and Union Bank at 3.10 million respectively.

Wema Bank and Sterling Bank trailed behind with about 2.10 million digital customers respectively while Stanbic IBTC ranks fifth with 1.30 million digital customers.

Notably, FCMB added 1.60 million more customers to its digital transacting platforms as at June 2021, reflecting the strength and stability of its platforms.

The bank’s digital payments revenue hit N6.7 billion in the first quarter of 2021, representing 11 per cent of gross revenue and 51 per cent of gross fees and commissions.

In its half-year report, FCMB said mobile, cards and alternate payment channels were drivers of significant retail digital revenues, which will continue to see traction.

“We see a lot of market opportunities for our Merchant Solutions and Web Payments as we replicate the retail side’s success to our small and medium enterprises (SMEs), commercial and corporate banking customers,” said FCMB.

The results showed that the growth trajectory in the bank’s transactions with SMEs was due to the automation of its SME lending platform.

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The half-year report also showed that FCMB generated N12.93 billion in net fees and commission income as at June 2021, showing improved transaction volumes on its digital channels.

The result compares favourably with Fidelity Bank at N9.41 billion, Sterling Bank at N8.36 billion, Union Bank at N6.95 billion and Unity Bank at N3.07 billion.

Nigeria, Africa’s largest economy, is not left out of the acceleration in digital transactions as financial technology firms are leading the charge to a new frontier.

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Between 2014 and 2019, Nigeria’s bustling fintech scene raised more than $600 million in funding, attracting $122 million or 25 percent of the $491.6 million raised by African tech startups in 2019 alone – second only to Kenya, which attracted $149 million, according to global research body, Mckinsey & Company.

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