Business
No hiding place for traditional banking dinosaurs
On the 4th of May, the first day after strict COVID-19 lockdowns were lifted in Lagos, customers rushed to bank branches all over the city.
From Surulere to Marina, bank halls overflowed with customers who felt they had to meet physically with bank staff. Their needs varied, from new requests for debit cards to reversing unsuccessful transactions.
But none of these services should require large crowds at banks, certainly not in 2020 with the technological advances permeating all sectors globally.
In South East Asia, the coronavirus pandemic is accelerating a digitalization race in the traditional banking space that was already heating up due to a mass customer switch to convenient mobile-based systems. Digital banks like Monzo, N26 and Revolut took advantage of the lockdown periods to emphasize the wholly online service delivery processes as the future of banking in Europe.
There is no reason for Nigeria to be left out. In fact, there may already be an appetite for more digital banking systems thanks to the limitations of social distancing.
More than 15 million new accounts were added to the banking sector between April and May, the first month of COVID-19 lockdowns in Nigeria, according to data from the Nigeria Inter-Bank Settlement System (NIBSS). At least 12 million of those accounts were active during the period.
These are remarkable statistics; such a large number of accounts had never been added to the banking sector within any one-month period. Nigerians appeared to have even more need for formal financial services when physical restrictions were imposed on their movement.
During the lockdowns, many activities normally performed at physical locations moved online – teleconferencing at work, e-learning, online grocery shopping, religious worship. Each has a financial service component to it requiring users to activate online banking functionalities or at least mobile money. Therefore, the increased use of the internet to adapt to the circumstances created an uptick in demand for digital financial services.
Consider this: according to the GDP figures released by the Nigeria Bureau of Statistics, the ICT sector contributed 17.83% to the economy in the second quarter of the year. It was an improvement on the first quarter’s 14.07% which the Minister of Digital Economy had hailed as unprecedented.
It is possible that this growth in the ICT sector will continue as broadband penetration improves, from 39.54% in April to 42.02% in July.
An increasingly digitally-enabled Nigeria opens up new challenges and opportunities for the financial services sector. As a service critical to economic growth and national productivity, banking will have to respond to this shift.
Yet, many banks are still not well equipped to fully provide core services online.
The country’s top banks still require new customers to visit their physical locations to open accounts. This process continues to be paper-based with physical capture deemed necessary, as against signing up on mobile and uploading documents in soft copy. At bank halls, queues remain a feature around customer service desks because, for the most part, banks have not thought deeply about leveraging technology for dispute resolution.
Thanks to regulatory guidance from the Central Bank of Nigeria, the industry tends to adjust adequately to new technological demands. The introduction of the Bank Verification Number in 2011 was a seminal achievement crucial for today’s fintech boom. With NIBSS’s instant payment feature, banks and fintechs integrate functionalities that enable secure mobile banking.
It is time to push on from foundational achievements to lift the banking sector into higher realms of innovation. By thinking about service delivery primarily from the view of the technology-enabled user who is immersed in the digital world, banks can begin figuring out ways to adapt in-bank processes to fit customers’ new remote-first expectations.
This is the promise of the new wave of digital banks in the country. They are assuring customers that everything necessary for a complete banking experience is right in their pocket.
By modeling user experience after habits formed by using social apps, digital banks are making the strong case for a new generation of financial service customers to turn away from traditional institutions. On the VBank app for example, you only spend two minutes to get an account number. Zero paperwork.
Some Nigerian big banks are dominant international players in the financial services world, so a massive customer switch to digital banking change will not happen overnight. There are only 43.2 million BVNs at the moment which means only about 21.5% of the population can access digital banking.
The growth of digital banking itself will track improvements in broadband and smartphone penetration.
But COVID-19 has the effect of teasing the appeal of mobile-first convenience to banking customers. Many are now aware that it is possible to stay for weeks without going into a bank hall to access financial services.
Having had a taste of how convenient it is to bank remotely, customers will align with institutions that keep pace with this shift. This promise of a new normal stands to benefit digital banks that improve their visibility with customers.
Nigeria’s Inflation Drops to 15.10% as NBS Reports Deflationary Trend
Nigeria’s headline inflation rate declined to 15.10 per cent in January 2026, marking a significant drop from 27.61 per cent recorded in January 2025, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics.
The report also showed that month-on-month inflation recorded a deflationary trend of –2.88 per cent, representing a 3.42 percentage-point decrease compared to December 2025. Analysts say the development signals easing price pressures across key sectors of the economy.
Food inflation stood at 8.89 per cent year-on-year, down from 29.63 per cent in January 2025. On a month-on-month basis, food prices declined by 6.02 per cent, reflecting lower costs in several staple commodities.
The data suggests a sustained downward trajectory in inflation over the past 12 months, pointing to improving macroeconomic stability.
The administration of President Bola Ahmed Tinubu has consistently attributed recent economic adjustments to ongoing fiscal and monetary reforms aimed at stabilising prices, boosting agricultural output, and strengthening domestic supply chains.
Economic analysts note that while the latest figures indicate progress, sustaining the downward trend will depend on continued policy discipline, exchange rate stability, and improvements in food production and distribution.
The January report provides one of the clearest indications yet that inflationary pressures, which surged in early 2025, may be moderating.
Nigeria’s headline inflation rate declined to 15.10 per cent in January 2026, marking a significant drop from 27.61 per cent recorded in January 2025, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics.
The report also showed that month-on-month inflation recorded a deflationary trend of –2.88 per cent, representing a 3.42 percentage-point decrease compared to December 2025. Analysts say the development signals easing price pressures across key sectors of the economy.
Food inflation stood at 8.89 per cent year-on-year, down from 29.63 per cent in January 2025. On a month-on-month basis, food prices declined by 6.02 per cent, reflecting lower costs in several staple commodities.
The data suggests a sustained downward trajectory in inflation over the past 12 months, pointing to improving macroeconomic stability.
The administration of President Bola Ahmed Tinubu has consistently attributed recent economic adjustments to ongoing fiscal and monetary reforms aimed at stabilising prices, boosting agricultural output, and strengthening domestic supply chains.
Economic analysts note that while the latest figures indicate progress, sustaining the downward trend will depend on continued policy discipline, exchange rate stability, and improvements in food production and distribution.
The January report provides one of the clearest indications yet that inflationary pressures, which surged in early 2025, may be moderating.
Alpha Morgan to Host 19th Economic Review Webinar
In an economy shaped by constant shifts, the edge often belongs to those with the right information.
On Wednesday, February 25, 2026, Alpha Morgan Bank will host the 19th edition of its Economic Review Webinar, a high-level thought leadership session designed to equip businesses, investors, and individuals with timely financial and economic insight.
The session, which will hold live on Zoom at 10:00am WAT and will feature economist Bismarck Rewane, who will examine the key signals influencing Nigeria’s economic direction in 2026, including policy trends, market movements, and global developments shaping the local landscape.
With a consistent track record of delivering clarity in uncertain times, the Alpha Morgan Economic Review continues to provide practical context for decision-making in a dynamic environment.
Registration for the 19th Alpha Morgan Economic Review is free and can be completed via https://bit.ly/registeramerseries19
It is a bi-monthly platform that is open to the public and is held virtually.
Visit www.alphamorganbank to know more.
GTBank Launches Quick Airtime Loan at 2.95%
Guaranty Trust Bank Ltd (GTBank), the flagship banking franchise of GTCO Plc, Africa’s leading financial services group, today announced the launch of Quick Airtime Loan, an innovative digital solution that gives customers instant access to airtime when they run out of call credit and have limited funds in their bank accounts, ensuring customers can stay connected when it matters most.
In today’s always-on world, running out of airtime is more than a minor inconvenience. It can mean missed opportunities, disrupted plans, and lost connections, often at the very moment when funds are tight, and options are limited. Quick Airtime Loan was created to solve this problem, offering customers instant access to airtime on credit, directly from their bank. With Quick Airtime Loan, eligible GTBank customers can access from ₦100 and up to ₦10,000 by dialing *737*90#. Available across all major mobile networks in Nigeria, the service will soon expand to include data loans, further strengthening its proposition as a reliable on-demand platform.
For years, the airtime credit market has been dominated by Telcos, where charges for this service are at 15%. GTBank is now changing the narrative by offering a customer-centric, bank-led digital alternative priced at 2.95%. Built on transparency, convenience and affordability, Quick Airtime Loan has the potential to broaden access to airtime, deliver meaningful cost savings for millions of Nigerians, and redefine how financial services show up in everyday life, not just in banking moments.
Commenting on the product launch, Miriam Olusanya, Managing Director of Guaranty Trust Bank Ltd, said: “Quick Airtime Loan reflects GTBank’s continued focus on delivering digital solutions that are relevant, accessible, and built around real customer needs. The solution underscores the power of a connected financial ecosystem, combining GTBank’s digital reach and lending expertise with the capabilities of HabariPay to deliver a smooth, end-to-end experience. By leveraging unique strengths across the Group, we are able to accelerate innovation, strengthen execution, and deliver a more integrated customer experience across all our service channels.”
Importantly, Quick Airtime Loan highlights GTCO’s evolution as a fully diversified financial services group. Leveraging HabariPay’s Squad, the solution reinforces the Group’s ecosystem proposition by bringing together banking, payment technology, and digital channels to deliver intuitive, one-stop experiences for customers.
With this new product launch, Guaranty Trust Bank is extending its legacy of pioneering digital-first solutions that have redefined customer access to financial services across the industry, building on the proven strength of its widely adopted QuickCredit offering and the convenience of the Bank’s iconic *737# USSD Banking platform.
About Guaranty Trust Bank
Guaranty Trust Bank (GTBank) is the flagship banking franchise of GTCO Plc, a leading financial services group with a strong presence across Africa and the United Kingdom. The Bank is widely recognized for its leadership in digital banking, customer experience, and innovative financial solutions that deliver value to individuals, businesses, and communities.
About HabariPay
HabariPay is the payments fintech subsidiary of GTCO Plc, focused on enabling fast, secure, and accessible digital payments for individuals and businesses. By integrating payments and digital technology, HabariPay supports innovative services that make everyday financial interactions simpler and more seamless.
Enquiries:
GTCO
Group Corporate Communication
[email protected]
+234-1-2715227
www.gtcoplc.com
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