Banks to continue shift towards digital banking services – Deloitte

Banks in Ghana and Nigeria will continue to shift from traditional banking operations to digital banking services in 2025 and beyond.

According to Deloitte West Africa, mobile banking, online platforms, and digital payment solutions will dominate the sector, driven by the high adoption of mobile devices and internet penetration.

In its Sneak Preview of 2025 report, the professional services firm said traditional banks will increasingly invest in digitizing their operations to meet consumer demand for convenience and efficiency and to compete more favourably with financial technology firms (fintech).

It however warned that the expansion in digital banking services and use of IT infrastructure will continue to expose financial services players to cyber security challenges.

Implications

It pointed out that digital banking reduces operational costs, but banks will need to invest heavily in IT infrastructure and cyber security.

Similarly, expanded digital banking services across all cadres will improve access to banking for under-served and rural populations, aligning with government financial inclusion goals.

Banking Expansion and Increase Funding

Deloitte continued that the banking sector is poised for significant growth in 2025.

It added that the regulatory increase in capital requirements set by the Central Bank of Nigeria will prompt banks to bolster their capital base through equity infusions, mergers, and acquisitions, and this trend is anticipated to persist.

“The ongoing recapitalisation exercise is attracting the much-needed inflow from both domestic and foreign investments which will further strengthen the sector’s financial stability”.