Nigerian traditional banks began diving into the fintech industry in 2017, with Wema Bank’s launch of its ALAT platform marking the start of a significant industry shift. GTCO followed suit with Habari Pay in 2021, while FCMB expanded its consumer finance subsidiary, Credit Direct, into a fintech platform. Stanbic IBTC joined the trend by unveiling Zest in early 2023. The initial results have been mixed, with some platforms reporting substantial growth while others struggle to break even.
GTCO’s Habari Pay has emerged as one of the standout performers, reporting a remarkable 79% growth in net profit in 2024, reaching N3.9 billion. The platform’s total assets grew by 63%, reflecting a strong expansion. Likewise, FCMB’s Credit Direct reported an impressive after-tax profit of N7.9 billion in 2024, marking a 79% increase from the previous year. This performance solidifies its position as one of the most profitable subsidiaries of FCMB Group.
Meanwhile, Wema Bank’s ALAT has proven crucial for the bank’s digital growth, contributing to a 92% increase in its electronic banking income in 2024, reaching N14.1 billion. GTCO’s Habari Pay has also made significant moves to expand its reach, including a strategic N6.8 billion investment in its operations, while eliminating POS processing fees to foster wider adoption in 2025. These efforts indicate a strong intent to compete with dominant players like Moniepoint and OPay in Nigeria’s digital payments sector.
On the flip side, Stanbic IBTC’s Zest has faced difficulties, posting a net loss of N2.1 billion in 2024, exacerbated by high staff costs and operating expenses. Despite a small growth in income, the platform’s continued financial struggles highlight the challenges in establishing a profitable fintech arm within a competitive market. Additionally, Access Holding’s Hydrogen fintech arm made a modest after-tax profit of N3.03 billion in the first nine months of 2024, though its full-year results remain pending.
Source: Business day