As the Central Bank of Nigeria (CBN) reduced Commission on Turnover (CoT) to N1 per every N1000, Deposit Money Banks (DMBs) in the country have leveraged on income generation using electronic banking.
For instance, Guaranty Trust Bank and Access Bank Plc generated a sum of N35 billion in the first six months of 2016.
According to investigation, the above financial institutions recorded a growth of 363percent or N27.7 billion in six months of 2016 as against N7.6 billion generated in prior six months of 2015.
The GTBank announced N17.26 billion income generated through its electronic banking from N5.4 billion recorded in prior six months of 2015.
Also, Access Bank Plc’s channels and other E-business income related income stood at N18.8 billion in the first six months of 2016, 659 percent above N2.5 billion generated in first six months of 2015.
The CBN had announced phased of CoT which this year. But in a circular to banks early this year signed by Director, Financial Policy & Regulation Department, Mr. Kevin Amugo, the CBN replaced the CoT with Commission on Account Maintenance (CAM) but subject to maximum of N1 per N1000 (mille).
The regulatory body policy’s on CoT has continued to erode banks fees and commission income, forcing banks to derived income generation through E-Banking income generation, Account services, maintenance and ancillary banking charges among others forms of fees and commission income generation.
Group Managing Director / Chief Executive Officer, Access bank plc, Mr. Herbert Wigwe, noted that the bank grew its retail market share, leveraging innovation and technology by creating a lifestyle products and enhancing customer experience.
Commenting on the Bank’s first six months results for the period ended June, 30, 2016, he said, the bank’s impressive performance underscore continued ability to grow sustainably whilst effectively adapting to a challenging operating landscape.
The Managing Director/CEO, GTBank, Mr. Segun Agbaje, recently said the bank has recorded tremendous growth rates in customer adoption of digital services.
He said that GTBank would continue to be a bank of choice for digitally savvy customers.
He said, “Understanding that customers are always on the move; mobile banking puts us in the palm of our customers and provides a unique opportunity to offer quick and more efficient ways of providing banking services.
“Thus, we extended our mobile banking offering with the introduction of the 737 banking; a platform that allows customers transfer funds from, any bank in Nigeria, buy airtime, pay bills, link their BVN, and check account balances using their mobile devices.
“The 737 Banking platform provides us with an array of endless opportunities to partner with stakeholders, drive customers interactions and improve efficiency.”