Digital Banking Surge: Tier-1 Lenders Rival Fintechs with N286tn Volume

Nigeria’s tier-1 banks are tightening their grip on the country’s digital payments space, processing a combined N286.19 trillion in mobile banking transactions in 2025, a development that signals a narrowing gap between traditional lenders and fintech firms.

The surge in transaction volumes reflects years of sustained investment in digital infrastructure by leading banks, including Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA), Zenith Bank, and First Bank of Nigeria.

Industry data indicate that the renewed momentum is driven by improved system reliability, faster processing speeds, and enhanced user experience—areas where fintech firms had previously dominated due to frequent downtimes on bank platforms.

The breakdown of the figures shows that Zenith Bank recorded the highest volume at N104.14 trillion, followed by GTCO with N72.4 trillion, while UBA processed N51.65 trillion. First Bank also reported N58 trillion in mobile transactions within the first nine months of 2025, underscoring a strong upward trajectory.

Analysts say the figures mark a turning point in Nigeria’s payments ecosystem, which between 2020 and 2023 saw fintech platforms gain widespread adoption as bank apps struggled with failed transactions and service disruptions.

While the banks recorded gains, fintech firms continue to lead in customer satisfaction and user experience. According to a 2025 KPMG West Africa Banking Industry Customer Experience Survey, mobile-first fintech platforms still rank highest among users, with operators like OPay achieving top satisfaction scores driven by seamless transfers and app reliability.

Experts note that while reliability gaps are closing, competition is shifting towards pricing, innovation, and value-added services such as credit offerings and financial management tools.

The increased adoption of mobile banking is also translating into higher digital revenues for banks, as more customers now conduct transactions directly through bank-owned platforms rather than relying on third-party fintech apps.

With Nigeria witnessing a steady decline in cash usage and a rapid shift toward electronic payments, stakeholders say the battle between banks and fintech firms is entering a new phase, one defined less by infrastructure gaps and more by customer experience and product differentiation.