Data obtained from the Nigeria Interbank Settlement System (NIBSS) has shown that the value of instant bank transfers transactions carried out in the first five months of 2019, stood at N41.48 trillion.
According to the data, the figure marks a 36 percent hike when compared to the N30.448 trillion that was realised from the value of transactions on instant bank transfers in the corresponding period of 2018.
Further analysis of the data showed that the value of transactions on mobile devices in the last five months of this year summed up to N183.7 billion, increasing by 31 percent compared to N140.58 billion in the corresponding period of last year.
POS transactions: The report also showed that the volume of Point Of Sales (POS) transactions in the last five months, increased to 152.6 million. This is more than the 97.49 million gotten in the corresponding period of 2018.
What this means: Over time, a growing number of Nigerians are relying more on digital banking than ever before. This has been enabled by technological advancements and has a lot of advantages for both the customers and the service providers.
The development is highly beneficial to banks because the more transactions Nigerians perform, the more revenue they generate. This can be seen in the analyses of the audited reports of 11 banks which showed that they all realised about N124.5 billion revenue from electronic transactions in 2018, which is about 43 percent increase compared to N86.72 billion that was earned 2017.
Why digital banking: Below are some of the reasons why most Nigerians prefer digital banking.
- It allows the user to have flexibility and control over their finances, often from the comfort of their home.
- It is useful for people who have businesses online. Their customers can pay for goods and services online.
- It helps users to keep a check on their bank accounts for transactions.