Spending by banks on communications and IT stands at N82 billion

Ten commercial banks spent N81.92 billion on communications and information technology services in the first half of 2022.

According to the banks’ financial reports, this is an increase of 58.69% from the N51.62 billion spent by banks on the same services in the corresponding period of 2021.

During the period under review, Access Bank recorded the highest communication and IT expenditure among the banks. It spent N26.83 billion on communication, IT and e-commerce expenditure in the first six months of 2022.

Sterling Bank had the least expense of the banks. It spent N961 million on communication costs during the reporting period.

Analysis of data on other banks showed that Guaranty Trust Holding Company and its subsidiaries spent N9.33 billion on communications, technology-related expenses and administrative expenses.

GTCO also said the fee includes administrative fees paid to SIT for managing shares held by the plan.

Zenith Bank Plc spent N19.94 billion on telephone, postage, communication and information technology costs. First Bank Nigeria Holding Plc consolidated its communications, lighting and electricity expenses, reporting its total expenses at N7.58 billion for the period.

The United Bank for Africa spent N4.73 billion on communication, IT support and related expenses.

Wema Bank spent N1.19 billion on technology and alternative channels, as well as transport and communications.

Fidelity Bank spent N1.01 billion on telephone and computer expenses, while Stanbic IBTC Holdings Plc spent N6.78 billion on information and communication technology expenses. The Union Bank of Nigeria spent N3.56 billion on software.

According to experts, the increasing adoption of technology by banks has not only spurred the growth of banks, but has also cost them dearly.

An ICT Expert and Senior Partner of e86 Limited, Olugbenga Odeyemi, said, “A recent report on the Nigerian banking sector shows an increase in the adoption and use of e-banking platforms over the same period as you mentioned.

“Increased usage should increase both spending and revenue on the side of platform owners. So that’s a good thing. There’s also the angle of implementing more security features and expanding into new markets, I think growth is good for banking and technology.

According to Odeyemi, banks were not just spending on technology, but also to mitigate the attrition of tech talent.

He said: “The ongoing mass exodus from the country is also affecting the banking sector. Most of their good and reliable hands have left the country for opportunities in other countries. This is especially true for tech hires in banking.

“So the need to spend more isn’t just about spending more on the latest technology, it’s also important to review the well-being of their staff, especially those in their tech spaces and those managing their platforms. electronics.”

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