Banks vs Fintechs: New Data Shows Where Nigerians are Really Keeping Their Money
- Retail deposits in six major Nigerian banks rose by 24% to N39.01 trillion in 2025, up from N31.46 trillion in 2024
- Zenith Bank remained the leader in retail deposits, while Access Holdings recorded the fastest growth with a 77.1% increase to N9.87 trillion
- Despite the rapid expansion of fintech companies, traditional banks remain the primary custodians of customer funds
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Nigeria’s banking industry continued to strengthen its hold on customer funds in 2025, recording a sharp increase in retail deposits despite growing competition from financial technology firms.
An analysis of audited financial statements and investor presentations shows that retail deposits across six major banks rose to N39.01 trillion during the 2025 financial year, representing a 24% increase from N31.46 trillion recorded in 2024.
Source: UGC
The growth highlights the enduring influence of traditional lenders in attracting and retaining customer deposits, even as fintech companies expand rapidly across the country’s digital payments landscape.
Major banks record strong deposit growth
The six lenders reviewed—Access Holdings, United Bank for Africa (UBA), Guaranty Trust Holding Company (GTCO), Zenith Bank, Stanbic IBTC Holdings, and Wema Bank—all reported increases in retail deposits during the year.
Zenith Bank retained its leadership position, growing retail deposits to N11.56 trillion from N10.56 trillion in the previous year.
Access Holdings posted the strongest growth among the banks, with deposits surging by 77.1% to N9.87 trillion. The increase reflects the group's aggressive retail banking expansion strategy and continued digital customer acquisition efforts.
UBA followed closely with retail deposits of N9.77 trillion, representing a 15.1% year-on-year increase and extending a growth trend that has persisted for several years.
GTCO recorded N5.92 trillion in retail deposits, up 13.1% from 2024. Stanbic IBTC Holdings and Wema Bank also posted solid performances, with deposits rising to N974 billion and N922.4 billion respectively.
The consistent growth across all six institutions suggests that banks are successfully combining digital innovation with their long-established strengths to maintain customer confidence.
Why banks still hold the advantage
Despite the growing popularity of fintech platforms, traditional banks continue to benefit from factors such as salary accounts, extensive branch networks, regulatory oversight, and broader access to credit facilities.
These advantages have helped banks remain the preferred destination for storing funds, even as consumers increasingly use digital platforms for everyday transactions.
Fintech companies including OPay, PalmPay, Moniepoint, Kuda, Paga, and FairMoney have expanded rapidly in recent years, offering services ranging from instant transfers and mobile wallets to agency banking and digital savings products.
Their platforms now process billions of transactions and serve millions of users nationwide, significantly changing how Nigerians move money and access financial services.
Fintechs growing, but deposits remain with banks
Industry experts note that fintech firms currently play a different role from traditional banks. While they dominate payment processing and transaction volumes, banks remain the primary custodians of customer deposits.
This distinction has enabled both sectors to expand simultaneously without significantly undermining each other’s core business models.
However, analysts believe the competitive landscape could shift as fintech companies deepen their offerings in savings, investments, and fully digital banking services. As these platforms build stronger customer relationships and greater trust, they may begin to compete more directly with banks for deposits.
Source: UGC
For now, the latest figures show that Nigeria’s banks remain firmly in control of deposit mobilisation. While fintech firms continue to redefine convenience and speed in financial services, traditional lenders are still expanding their deposit base and reinforcing their central role within the country's financial system.
Source: Legit.ng
