Fintech companies are overtaking traditional banks in Nigeria, setting new standards for retail and digital banking experiences, according to the latest KPMG survey. The report highlights how mobile-first, agile fintechs are winning over tech-savvy customers with frictionless, innovative solutions.
In recent years, fintechs have consistently outperformed banks on key pillars such as Integrity and Time & Effort, driven by providers like Opay (81.2), PiggyVest (80.0), Moniepoint (79.5), PalmPay (79.3), and Kuda MFB (78.9). Customers praised these firms for low fees, easy onboarding, and reliable digital services, though issues such as security and resolution processes remain areas for improvement.
By 2024, fintechs strengthened their lead, with PiggyVest and Opay scoring 82.0, PalmPay 81.6, Kuda 80.6, and Moniepoint 80.2. They also advanced financial inclusion by simplifying access to loans, insurance, and investment services.
Traditional banks showed modest progress but remain hindered by legacy systems. Stanbic IBTC led retail banking with a score of 75.5, while corporate banking ranked highest, with GTBank at 82.5 and Zenith and Access tied at 82.2, benefiting from personalised relationship management and proactive support.
The report underscores persistent challenges across the sector, including low scores in Resolution—customers continue to cite delays in problem-solving—and Personalisation, reflecting generic services. A five- to seven-point gap in retail and digital experiences illustrates a clear shift: Nigerian consumers now prioritise fintech-like agility, convenience, and innovation over traditional branch networks.
The 2023 cash crunch accelerated this trend, with fintechs leveraging mobile-first designs, real-time tools, and trust features to embed themselves into everyday financial transactions. However, these companies must address ongoing risks around fraud, privacy, and marketing practices.
KPMG notes that the next wave of competition will hinge on seamless, proactive experiences, open banking, AI integration, and recapitalisation. The report warns that legacy banks must adapt to fintech standards or risk losing customer loyalty in Nigeria’s increasingly mobile-first financial landscape.
