Banks charge customers N715bn for electronic transactions, others

During the first nine months of 2022, eleven banks charged clients N714.61 billion in electronic fees and other commissions.Information Guide Nigeria

According to the nine-month financial reports of the banks, this is a 16.92% increase over the N611.21bn generated by the banks from this source during the same period in 2021.

Zenith Bank Plc, Sterling Bank Plc and Subsidiary, Stanbic IBTC Holdings Plc, Wema Bank Plc, Fidelity Bank Plc, and Union Bank of Nigeria Plc were among the banks involved.

United Bank for Africa Plc, Unity Bank Plc, First Bank of Nigeria Holdings Plc, Guaranty Trust Holding Company and Subsidiary Companies, and Access Holdings Plc were among the others.

The fees and commissions comprised credit-related fees and commissions, account maintenance costs, corporate finance fees, e-business income, asset management fees, and commissions on foreign currency transactions.

Other Top Stories:

Others included commission on contact points, shared service fees, income from issued financial guarantee contracts, account services, maintenance, and ancillary banking, and charges related to transfers.

UBA (N138.08bn) and Unity Bank (N5.34bn) earned the highest and least from fees and commissions, respectively. Wema Bank made N12.02bn, Fidelity made N25.04bn, Stanbic IBTC made N72.47bn, Union made N12.65bn, Sterling made N19.84bn, Access made N133.49bn, GTCO made N66.94bn, and FBN made N110.84bn from fees and commissions.

According to Access Bank, fees and commissions expenses represent fees charged for the provision of services to consumers transacting on the group’s alternate channels platform and on the numerous debit and credit cards provided for these payments.

It said, “They are charged to the group on services rendered on internet banking, mobile banking, and online purchasing platforms. The corresponding income lines for these expenses include the income on cards (both foreign and local cards), online purchases, and bill payments included in fees and commissions.”

The Central Bank of Nigeria established new criteria regarding bank fees on January 1, 2020. The new regulation mostly affected card maintenance costs, charges for hardware tokens, and the maximum amount that can be paid for electronic transfers.

According to Uju Ogubunka, president of the Bank Clients Association of Nigeria, banks were making a lot of money from bank fees, which was a burden for bank customers.

In an earlier interview with The PUNCH, He said, “The issue of excess charges has been a major source of concern to us as an association. We have since been fighting it and we will not stop.

“However, I must say that in most cases, the excess charges imposed on bank customers are not deliberate but a result of a capacity-building problem. That is when new recruits or inexperienced hands handle transactions and overcharge.JAMB Result

“Also, most times, when the banks overcharge, they are made to repay customers with prime interest plus two percent.”

Check JAMB Result

Check and Confirm: How much is Dollar to Naira