Rising bank fees push African customers toward FinTech

By Vriti Gothi

Bank customers across Africa are increasingly turning to FinTech platforms to escape what they describe as arbitrary and excessive service charges imposed by traditional banks. In Nigeria, in particular, frustrations are mounting as customers face a barrage of fees ranging from account maintenance to cash handling charges, often in defiance of regulatory guidelines.

For years, the Central Bank of Nigeria (CBN) has issued directives through its Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions aimed at standardising fees. Yet, complaints about non-compliance remain rampant. For example, fees such as management charges on restructured facilities explicitly not applicable under CBN rules are still being levied by some banks. Negotiable charges are seldom open to discussion, leaving customers with little room to contest costs.

The issue is no longer confined to anecdotal grievances. Industry statistics reveal that over 400,000 complaints regarding “arbitrary charges” were filed against banks in the past six months alone. Alarmingly, fewer than 10% of these complaints resulted in successful reversals, leaving a vast pool of disgruntled clients.

This has opened the door for FinTech challengers such as O’Pay, Moniepoint, and PalmPay to capture market share. These digital-first firms are luring customers with low or zero transaction fees, seamless onboarding, and user-friendly interfaces. For many, the switch to FinTech is not just about cost savings but also about the speed and transparency of services, a sharp contrast to long queues and opaque charges at brick-and-mortar bank branches.

Analysts warn that banks may be “shooting themselves in the foot” by clinging to fee-driven revenue models at a time when consumers have credible alternatives. The aggressive adoption of FinTech services across Nigeria and broader Africa is evidence of shifting customer loyalty. For traditional banks, the challenge is twofold: rebuild trust and adapt to a digital-first economy.

This tension comes at a time of broader structural changes in Africa’s banking landscape. Access Bank Plc, one of the continent’s largest lenders, continues to deepen its footprint across East Africa. In its latest move, the bank acquired Standard Chartered Tanzania’s consumer, private, and business banking operations. The divestment is part of Standard Chartered’s strategic retreat from several African markets, including Angola, Cameroon, The Gambia, and Sierra Leone, as it refocuses on its wealth management business.

Herman Kasekende, CEO of Standard Chartered Tanzania, said, “The transition is “pivotal moment” for the bank, emphasizing a seamless handover for clients and employees.”

Access Bank, meanwhile, is positioning the acquisition as a catalyst for regional expansion. Roosevelt Ogbonna, MD/CEO of Access Bank Plc, said the deal enhances the bank’s ability to deliver inclusive, digitally driven solutions across Tanzania and the wider East African region. The acquisition follows Access Bank’s completion of its takeover of the National Bank of Kenya (NBK) earlier this year, underscoring its strategy of combining local expertise with global networks.