The Central Bank of Nigeria (CBN), has urged Nigerian banks to reduce their charges for customers.
According to the apex bank, for the financial institutions to attract the Millennials and Gen-Z, they need to as well tailor their services to them.
Deputy Governor, Financial System Stability, CBN, Aisha Ahmad made the call during the Launch of the Millennial & Gen Z Banking Survey Report.
Speaking at the launch of the report that identified enormous bank charges as a major challenge to traditional banks in attracting millennials, Ahmad said considering the fact that Nigeria’s population is mostly dominated by the Millennials and Gen-Z, banks need to provide the kind of services suited for this demographic if they are serious about sustaining their businesses.
“A lot has happened in the industry and there has been a lot of transformation, a lot of innovation, and digital technology has come into change the way financial services are delivered. Also, most importantly to change the way people and different segments use financial services. And that is why this report is important because it focuses on a very important and strategic segment for banks and non-bank financial institutions and that is the millennials and Gen-Z,” she added.
Nigerian banks’ charges
The financial statements of Nigerian banks for the year ended December 31, 2021, showed that most of them recorded an increase in their non-interest income, which is typically what they earn from non-core activities.
BizWatch Nigeria understands that the non-core activities include -credit card charges and service charges.
In the period under review, Guaranty Trust Holding Company (GTCO) Plc saw its non-interest income, comprising fees and commission income, net trading gains, and other income, rise by 17.1% to N180.9 billion in 2021 compared to 2020, according to its annual report.
Access Bank recorded a net fee and commission income of N118.59 billion in 2021, rising by 26.73 from N93.57 billion in 2020.
Zenith Bank’s non-interest income increased by 23% from N251.7 billion in 2020 to N309 billion in 2021.
FBN Holdings, the holding company for First Bank of Nigeria, saw its fees and commission income increase by 18.47% to N103.77 billion in nine months of 2021 from N87.59 billion in the same period of 2020.
The net fees and commission income of United Bank for Africa (UBA) rose to N158.64 billion in 2021 from N126.94 billion in 2020.