Zenith Bank reportedly has started partnering with Fintech companies to drive payment solutions and other financial products to its customers says Ebenezer Onyeagwu, Chief Executive Officer of Zenith Bank Plc.
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The new development was disclosed by Onyeagwu during a recent exclusive appearance on CNBC Africa to reflect on the company’s audited 2019 financial statement.
According to Onyeagwu, the increase in the company’s focus towards digital banking is partly because of the N208.8 billion profit after tax that was reported in 2019. Recall that in 2019, Zenith Bank’s profit after tax had 7.9% growth, up from N193.4 in 2018.
With the significant speedy revolution in the Nigerian digital economy, more and more Nigerians are moving from the conventional way of banking to digital ways of banking and transacting.
Onyeagwu also notes that retail banking largely contributes to the impressive growth. This is because Zenith bank largely ventured into retail banking for the first time in a full year.
“Last year was our first full year in our foray into digital and retail banking. So, when you are looking at the digital income and fees, it’s a combination of both digital and retail fees. Last year was the first full year when we went full blast into the retail business, so we’ve seen that combine to give us incremental growth in terms of income from fees and electronic commission.”
He also notes that people tend to patronize other fintech companies’ bank agnostic products compared ro banks own product. This Onyeagwu said is one of the reasons why Zenith bank has decided to collaborate with fintechs.
The GTBank 2019 Year in review also notes that banks has seen a significant competition with fintech payment companies in yearly earnings. More reasons why the banks need collaborate with fintech platforms for better banking services.
Piggyvest and other top digital banking apps are in the pipeline within this sector. Also, we have Creditcoin, the yet to launch digital loan app powered by blockchain technology.
“We are also looking at some integration with various fintech companies depending on what services you have. Sometimes we are collaborating with fintech companies to drive payment on different platforms. In some cases, too, we are churning out new products just to create confidence for our customers.”
This is a call for more blockchain powered solutions in the banking sectors which will not only speed up transactions, but will also grow blockchain and cryptocurrency adoption in Nigeria. Reports has it that not up to one million Nigerians has blockchain wallets.