Nigerians Going Digital Faster Than Expected

‘In Pursuit Value’, a KPMG report that included surveys from Nigerian and Ghanaian bank customers compiled their 2023 banking shift experiences.

The report by KPMG indicated that on a weekly basis, the usage of ATMs amongst Nigerians has decreased in the past years at an average of 70% and in 2023 went down o 40%.

The survey states that given that cash is frequently unavailable in many ATMs, ATM usage in Nigeria has significantly decreased.

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The report continued to state how medium digital transactions also decreased which stated that, “currently, four in ten customers report weekly ATM usage, a notable decline from the previous seven in ten over the last few years. This decline in ATM us- age coincides with a significant rise in agency banking usage, with six in ten customers frequenting bank agents every week.”

The report stated that an increase in agency banking emphasis persisted with its popularity of cash. However, the survey included those payments through digital mediums increased by 52% between January and October in 2023 according to the data by NIBS.

“Consequently, digital payments surged, marking a notable 52 percent increase in total NIBSS Instant Payment (NIP) transactions by October 2023 compared to January of the same year. This was triggered by the Central Bank of Nigeria’s initiative to overhaul the Naira, aiming to regulate cash circulation and reduce reliance on physical currency.”

An explanation of the rise in digital payments overpowered Tier-1 banks in regard to several failed transaction cases that had fintechs such as Opay, PalmPay, and Moniepoint met the challenge of fulfilling customer needs. 58% of the respondents according to the survey had legitimate reasons to switch to fintechs. From 2022 till today there has been a significant reliance on fintech by bank retailers and their banking needs.

The decrease in ATM usage in this case is a great reference deal to the fact that Nigerians are moved to digital banking. This allows e-banks to enhance their services which includes making the applications more user-friendly and meet the convenience of everybody.

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