In recent years, the Nigerian financial landscape has undergone a profound transformation, with fintech companies emerging as powerful players, offering innovative and flexible solutions to the banking needs of millions. These startups, agile and tech-driven, have successfully tapped into gaps left by traditional banking institutions—especially in areas like mobile banking, financial inclusion, and seamless digital payments. However, far from conceding the market, traditional banks in Nigeria are rising to the challenge with significant strategic shifts and bold innovations.
The Nigerian banking industry is experiencing a seismic shift, as fintech startups continue to reshape how financial services are delivered. With their mobile-first platforms and user-centric solutions, fintechs in Nigeria have attracted millions of users and billions in transactions. However, traditional banks—especially giants like Access Bank, GTBank, Wema Bank, and Zenith Bank—are refusing to be left behind. These institutions are embracing digital transformation, forming strategic partnerships, and launching innovative financial products to compete in the new digital economy.
A notable example is ALAT by Wema Bank—Nigeria’s first fully digital bank—which allows users to perform all banking operations without ever stepping into a physical branch. These efforts have begun to pay off, as seen in the combined N165.27 billion that Nigeria’s top banks earned from e-banking services in just the first quarter of 2025.
Beyond digitization, traditional banks are also embracing collaboration with fintech companies rather than seeing them solely as competitors. Through strategic partnerships, banks gain access to cutting-edge technologies while fintechs benefit from the banks’ vast customer bases and regulatory expertise. This symbiotic relationship is fostering a more integrated financial system, where customers receive the best of both worlds—innovation and trust.
Some banks are taking it a step further by developing their own fintech-like solutions in-house. This approach allows them to retain control while offering tailored digital experiences that align with specific customer needs. By fostering innovation internally, these institutions are positioning themselves as tech-savvy and future-ready, capable of competing head-on with even the most nimble startups.
Digital Transformation: The First Line of Defense
As fintechs gain ground, Nigerian banks are investing heavily in digital banking infrastructure. Access Bank’s digital transformation journey includes a robust mobile banking app, AI-driven customer service tools, and a strong push into internet banking and USSD platforms. Similarly, GTBank has expanded its suite of digital tools, including the GTWorld mobile app, QuickCredit for instant loans, and online business banking platforms tailored for SMEs.
According to recent financial reports, top Nigerian banks earned over ₦165 billion from e-banking services in Q1 2025, a strong indicator that their digital banking strategies are working. These moves are critical to remaining competitive in a market increasingly dominated by agile fintech companies.
Fintech Partnerships: Collaboration Over Competition
Rather than viewing fintechs solely as competitors, traditional banks are now forming strategic partnerships with fintech startups in Nigeria. These collaborations allow banks to integrate modern financial technologies into their platforms while leveraging their regulatory expertise and customer trust.
For instance, Access Bank collaborates with various fintechs for digital lending, merchant payments, and cross-border remittances. GTBank, under its holding company GTCO, launched Squad by GTCO, a full-service fintech company that offers payment solutions to individuals and small businesses—an area previously dominated by players like Flutterwave and Paystack.
Developing In-House Fintech Products
In addition to partnerships, traditional banks are building their own fintech-style products. GTBank’s HabariPay and GTPay platforms allow merchants to receive online payments seamlessly, reducing their reliance on third-party fintech services. Access Bank is also strengthening its digital infrastructure with APIs and developer support, allowing businesses to integrate directly with its systems.
These innovations help banks maintain control over their customer relationships while delivering the kind of seamless user experience fintechs are known for.
Targeting Niche Markets: Youth, Women, and SMEs
To remain relevant, traditional banks are creating specialized services targeting underserved segments. Access Bank’s agency banking model has brought digital banking to rural communities, while its W initiative supports women entrepreneurs with funding and mentorship.
GTBank has targeted younger demographics through lifestyle banking, events, and social media marketing. Campaigns around GTWorld and QuickCredit have helped the bank connect with tech-savvy users looking for fast, mobile-first solutions.
Financial Inclusion: Supporting National Digital Initiatives
Traditional banks are also key players in promoting financial inclusion in Nigeria. They’re working with the Central Bank of Nigeria’s AfriGo card scheme, which encourages the use of local payment cards and reduces dependence on international networks like Visa and Mastercard. By participating in such initiatives, banks are helping bring more Nigerians into the formal financial system—an area fintechs previously dominated.
Conclusion: The Future of Traditional Banks in Nigeria
As fintech startups continue to disrupt Nigeria’s financial landscape, traditional banks like Access Bank and GTBank are proving they can evolve. By investing in digital infrastructure, launching their own fintech platforms, partnering strategically, and focusing on niche segments, these banks are actively redefining themselves for the digital age.
The result? A highly competitive ecosystem where the lines between banks and fintechs are increasingly blurred—and customers are the ultimate beneficiaries.
Specialization is another area where banks are finding success. Institutions such as FCMB have launched platforms like Flexx, which targets the youth demographic with services tailored to their digital-first lifestyle. Meanwhile, programs like SheVentures offer women entrepreneurs not only funding but also mentorship and networking opportunities. Wema Bank has also gained attention for its annual Hackaholics event, a startup competition that promotes innovation within the tech and banking sectors.
Additionally, traditional banks are playing a key role in advancing financial inclusion. In alignment with national goals, banks are supporting the rollout of domestic initiatives like AfriGo, the Nigerian card scheme developed to offer cheaper and more accessible banking options. This not only broadens their customer base but also counters fintechs’ appeal in underbanked and rural areas.
In conclusion, the narrative that fintechs are outpacing banks in Nigeria is only part of the story. While fintech companies have undeniably disrupted the status quo, traditional banks are not standing still. Through digital reinvention, collaboration, internal innovation, targeted services, and national financial inclusion efforts, Nigerian banks are transforming themselves into competitive, tech-enabled institutions that continue to shape the future of finance in the country.
