Nigerian banks started making a bet on fintech in 2017 when Wema Bank launched its ALAT platform. This move signalled a broader industry shift, with GTCO introducing Habari Pay in 2021, FCMB evolving its consumer finance subsidiary, Credit Direct, into a fintech platform, and Stanbic IBTC unveiling Zest in H1 2023.
Since entering the fintech space, these banking groups have experienced mostly good outcomes. In 2024, HabariPay recorded an operating income of N5.8 billion with a profit after tax of N3.9 billion. This marks a 79 percent growth from 2023’s net profit of N2.2 billion. FCMB’s Credit Direct also posted a net profit of N7.9 billion. However, Zest by Stanbic IBTC recorded a N2.1 billion net loss.
ALAT by Wema Bank was instrumental in Wema’s N14.1 billion electronic banking income in 2024. The fintech is not a standalone corporate entity but embodies Wema Bank’s digital banking initiatives. In 2024, the bank generated N14.1 billion in net income from its electronic banking products—a remarkable 92 percent increase from the N7.3 billion recorded in FY 2023—highlighting the growing impact of its digital strategy.
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GTCO’s HabariPay is a payment solution provider that helps simplify payments. It owns SquadCo, a contactless payment solution by GTCO Holdings. As of 2024, Habari Pay’s total assets were N11 billion, representing a 63 percent growth from 2023’s N6.7 billion. Since 2022, Habari Pay’s net income has surged by 364 percent from N836.5 million.
In 2024, Habari Pay invested N6.8 billion in strengthening its operational capabilities—a strategic move that positions the platform to compete more aggressively in a payments landscape currently dominated by Moniepoint and OPay. As part of its broader push to gain market share, from February 2025, GTB eliminated all processing fees on its Point-of-Sale (POS) terminals, which are powered by Habari Pay’s technology. The move signals a clear intent to drive adoption and deepen its footprint in the digital payments space.
Credit Direct, the consumer lending arm of FCMB Group, recorded an after-tax profit of N7.9 billion in FY 2024—a robust 79 percent increase from the N4.4 billion posted in 2023. This performance positioned the platform as the second most profitable subsidiary within the Group, trailing only First City Monument Bank, which delivered a net profit of N54.1 billion.
The lending platform reported an interest income of N39.8 billion for FY 2024, reflecting an impressive 85 percent increase from N21.4 billion in FY 2023. Credit Direct’s impairment charge-to-interest income ratio declined to 3.3 percent in 2024, down from 6.3 percent the previous year—underscoring a marked improvement in the quality of its loan portfolio. This is as the fintech platform’s loan book grew to N88.3 billion in 2024, a significant growth from N56.7 billion as of FYE 2023.
Stanbic IBTC Holdings’ Zest has struggled since its launch in 2023. It was built to be a multi-rail financial platform for businesses, enabling payments across various payment channels. It also supports the creation of online stores.
Although Zest’s income grew to N124 million in 2024, its losses grew to N2.1 billion during the year. In 2023, its losses were N1.2 billion. The major source of its losses was the N1 billion staff costs, and the N1.2 billion incurred on operating expenses.
Hydrogen, Access Holding’s fintech arm, is yet to release its full-year financial result, but in the first nine months of 2024, it made N3.03 billion in its after-tax profit.