By 
By Osasome C.O
Top Banks Narrow Gap with Fintech Rivals
Nigeria’s leading commercial banks have regained significant ground in the country’s fast-growing digital payments ecosystem, processing a combined ₦286.19 trillion in mobile transactions in 2025.
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The surge signals a major shift in competitive dynamics between traditional banks and fintech firms, narrowing the reliability advantage previously enjoyed by mobile-first operators such as OPay and PalmPay during periods of frequent banking app failures.
Industry analysts say the development reflects years of strategic investments in digital infrastructure by major lenders, including Guaranty Trust Holding Company, United Bank for Africa, Zenith Bank, and First Bank of Nigeria.
Infrastructure Investments Drive Transaction Growth
The renewed momentum in mobile banking adoption is being driven by improved system stability, faster processing speeds, upgraded digital channels, and enhanced customer experience.
Between 2020 and 2023, fintech platforms gained widespread popularity as consumers increasingly relied on them for instant transfers amid recurring service disruptions on banking apps. However, banks have since intensified investments in core banking systems, cloud infrastructure, cybersecurity, and real-time payment technologies.
Analysts say these investments are now translating into stronger transaction volumes and improved customer confidence.
Zenith Bank Leads Mobile Transaction Volumes
Breakdown of the 2025 figures shows that Zenith Bank recorded the highest mobile transaction volume at ₦104.14 trillion, representing a 107 per cent increase over two years.
Guaranty Trust Holding Company followed with ₦72.4 trillion, boosted significantly by rapid adoption of its “pay-with-transfer” feature, whose volumes reportedly jumped 78-fold year-on-year.
First Bank of Nigeria processed ₦58 trillion in the first nine months of 2025 alone, already surpassing its full-year 2024 performance, while United Bank for Africa recorded ₦51.65 trillion, representing a 93 per cent rise compared to 2023 levels.
Competition Shifts Beyond Reliability
While banks are rapidly closing the infrastructure and reliability gap, fintech firms continue to maintain an edge in customer satisfaction and seamless user experience.
According to the 2025 KPMG West Africa Banking Industry Customer Experience Survey, mobile-first fintech operators remain highly rated by users, with OPay emerging among the top-performing platforms due to efficient transfers, intuitive interfaces, and app reliability.
Industry experts note that competition is now evolving beyond basic transaction processing toward:
- Embedded finance solutions
- Credit and lending products
- Wealth management services
- Rewards and loyalty systems
- Open banking innovation
This marks a transition from the earlier phase where fintechs primarily competed on speed and uptime against traditional banks.
CBN Policies Reshape Fintech Landscape
Analysts also point to evolving regulatory policies by the Central Bank of Nigeria as a factor reshaping the digital payments landscape.
The apex bank is encouraging large fintech operators to transition toward National Microfinance Bank licences, a move expected to increase regulatory oversight, compliance requirements, and operating costs.
Experts say the policy could accelerate consolidation in the fintech sector while strengthening competition between licensed digital banks and traditional lenders.
Cashless Economy Accelerates Digital Banking Growth
Nigeria’s continued transition toward a cashless economy is driving higher adoption of electronic payments across retail, enterprise, and public-sector transactions.
The shift is also boosting digital revenue streams for banks as more customers increasingly transact directly through bank-owned channels instead of relying on third-party fintech platforms.
Stakeholders say the next phase of Nigeria’s digital payments evolution will be defined by innovation, ecosystem integration, and personalised financial services rather than merely transaction reliability.
