Soaring bank charges drive African clients towards FinTech options

The Central Bank of Nigeria (CBN) has issued directives to standardize fees, but non-compliance complaints remain common in the Nigerian banking sector. Despite regulatory guidelines, customers face a multitude of fees, including account maintenance and cash handling charges from traditional banks.

Amidst these challenges, traditional banks face a significant hurdle in rebuilding trust and adapting to a digital-first economy. In contrast, FinTech platforms are gaining popularity in Africa due to their lower service charges, speed, and transparency.

One such FinTech company, MiniPay, has recently surpassed 8 million wallets and 200 million transactions, with a 255% activation surge in Q2 2025. Other FinTech challengers like O'Pay, Moniepoint, and PalmPay are also capturing market share by offering low or zero transaction fees, seamless onboarding, and user-friendly interfaces.

Access Bank Plc, one of Africa's largest lenders, is expanding its footprint across East Africa by acquiring Standard Chartered Tanzania's consumer, private, and business banking operations. This acquisition is part of Standard Chartered's strategic retreat from several African markets. The acquisition was announced on an unspecified date.

Roosevelt Ogbonna, MD/CEO of Access Bank Plc, states that the acquisition enhances the bank's ability to deliver inclusive, digitally driven solutions across Tanzania and the wider East African region. Herman Kasekende, CEO of Standard Chartered Tanzania, emphasizes a seamless handover for clients and employees during the transition.

Access Bank Plc's strategy involves combining local expertise with global networks. The acquisition follows Access Bank's completion of its takeover of the National Bank of Kenya (NBK) earlier this year.

Over 400,000 complaints regarding arbitrary charges were filed against banks in the past six months, with fewer than 10% resulting in successful reversals. Analysts warn that banks may be losing customers by clinging to fee-driven revenue models when consumers have credible alternatives.

The aggressive adoption of FinTech services across Nigeria and broader Africa indicates a shift in customer loyalty towards digital-first firms. As traditional banks grapple with regulatory issues and customer dissatisfaction, FinTech companies continue to thrive, offering a more customer-friendly approach to banking.

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