Amid Fintech Competition, Six Banks’ Customers Loans Up 9.2% to N33.99trn 

Kayode Tokede

Despite severe the challenge posed by Fintech companies last year,  Ecobank Transnational Incorporated and five others deposit money banks (DMBs) declared N33.99trillion loans & advances to customers for the year ended December 31, 2025.

This is represents a 9.2 per cent increase over the N31.12 trillion declared in the corresponding period 2024.

The banks include: Ecobank Transnational Incorporated, Stanbic IBTC Holdings Plc, FCMB Group Plc, Wema Bank Plc, First Holdco Plc and Sterling Financial Holdings Company Plc.

The likes of Zenith Bank Plc, Access Holdings Plc,among others are yet to announce audited result and accounts for the year ended December 31, 2025.

A review of the unaudited results of these six DMBs operating in Nigeria, Africa and across the world, showed an aggressive increase in low-cost deposits amid severe challenges posed by Fintech companies.

In recent years, Nigerian banks have faced competition from Fintech companies such as, Moniepoint Microfinance Bank, MoMo Payment Service Bank (MoMo PSB), Fintech subsidiary of MTN Nigeria. Airtel SmartCash,  PiggyVest, Opay, Palmpay, among others that offer lucrative interest rate on loans  to customers.

Recent numbers released by Moniepoint highlight how Nigerian fintechs are powering the informal economy with credit. A recent disclosure by FairMoney MFB, showed that Fintech disbursed over N150 billion in loans to small businesses in 2025.

As technology evolves, customer demands continue to affect how businesses operate especially in the banking sector.

In recent times, Fintech startups have raised the bar, offering customers easier, faster, and cheaper financial services particularly in areas such as zero transfer fees, more attractive interest rates on savings, full online banking experience, speed and simplicity.

These competitive advantages are endearing them to an increasing number of customers and strengthening their position in the industry.

With the emergence of more Fintech companies, electronic payment transactions in Nigeria, as Moniepoint Microfinance Bank disclosed recently it processed transactions worth N412 trillion and disbursed over N1 trillion in loans in 2025.

In  the period under review, Ecobank Transnational Incorporated declared N17.09 trillion loans & advances to customers, about 11 per cent increase over the N15.35trillion reported in 2024.

First Holdco posted N9.06 trillion loans & advances to customers in 2025, up by three per cent from N8.8 trillion in 2024, while FCMB Group declared N2.29 trillion loans & advances to customers in 2025, down by three per cent from N2.36 trillion in 2024.

Wema Bank reported N1.75 trillion  loans & advances to customers in 2025,  about 45 per cent increase over N1.2 trillion in 2024,  Stanbic IBTC Holdings saw its  loans & advances to customers in 2025 at N2.38 trillion, a marginal increase of 1 per cent from N2.34 trillion reported in 2024.

In addition, Sterling Financial Holdings Company posted N1.42 trillion  loans & advances to customers in 2025, representing an increase of 29 per cent from N1.1trillion reported in 2024.

However, Institutions are increasingly entrusting their funds into the safekeeping and management of Nigerian banks as the six DMBs total deposits in the banking sector increased to N70.79 trillion in 2025 financial year, about 15.3per cent growth from N61.42 trillion reported in 2024 financial year.

An NGX showed impressive growths across all cadres and tiers of banks, with the middle tier and newly established banks competing well with the first generation and largest banks.

Combined financial institution deposit and customers deposit revealed that ETI leading the chart with over N36.44 trillion deposits in 2025, about 15.2per cent increase from N31.64 trillion in 2024, while First Holdco  reported N18.8 trillion deposits in 2025, representing an increase of 10.04per cent from N17.17 trillion declared in 2024 financial year.

As Stanbic IBTC Holdings announced N4.78 trillion deposits in 2025, about 46.06 per cent increase over N3.27 trillion in 2024,  FCMB Group deposit stood at N4.4 trillion in 2025, up by 2.45 per cent from N4.29trillion in 2024,

Further investigation by THISDAY revealed that declared Wema Bank posted N3.28 trillion deposits base expansion in 2025, an increase of 30.1per cent from N2.52 trillion in 2024, as, Sterling Financial Holdings Company declared N2.98 trillion  deposits in 2025, a growth of 18,4 per cent from N2.52 trillion in 2024.

A general review of the deposits by banks showed considerable cost management, with DMBs recording substantial increases in low-cost deposits.

Deposit is a key ratio to measure public confidence and popular participation in a financial services sector. It is the basic building block for a banking sector’s funding and liquidity. Deposit size, growth and structure are key analytical instruments for banks’ examiners and analysts.

Commenting, the CEO, Wyoming Capital and Partners, Mr. Tajudeen Olayinka stated that the increasing deposits  in the banking sector last year is driven by industry competition and excess liquidity in the financial sector.

He noted that this underlined that banks are beginning to explore other alternatives   to grow deposit in a move to remain relevant and lend to the real sector.

The deposit growth underlines the dynamism and effectiveness of banks’ management as well as growing contributions of banks to the Nigerian economy.

There is a correlational relationship between deposit and loans and expenses, and as such, national economic growth.

The growth in lending and supports to the private sector underlined the resilient balance sheet of banks and banks’ response to the apex bank’s push for increased lending to bolster economic activities.