According to a recent KPMG analysis, the percentage of Nigerians who use ATMs on
a weekly basis fell from 70% in the previous several years to 40% in 2023.
Customers of banks in Ghana and Nigeria were questioned for the report “In Pursuit Value,”
which compiled their 2023 experiences.
The research claims that because cash is frequently unavailable at many ATMs, ATM usage
in Nigeria has significantly decreased.
It said that the survey’s medium digital transactions fell from the top ten to outside the top
ten.
According to the survey, four out of ten consumers report using an ATM once a week, which
is a significant decrease from the seven out of ten customers who reported using them
weekly a few years ago.
It states that six out of ten customers visit bank agents weekly, coinciding with a
the notable increase in agency banking usage and a fall in ATM usage.
The study also showed that customers’ desire for more easily accessible cash options is
highlighted by the growth of agency banking, which is largely due to the widespread
acceptance of bank agents as trusted advisors.
The report also revealed that, based on NIBSS data, payments made through digital
channels increased by 52% in 2023 between January and October.
It clarified that the cash scarcity brought on by the Central Bank of Nigeria’s (CBN) currency
redesign strategy in the first quarter of 2023 was what caused the surge in digital payments.
The statement read as follows: “As a result, digital payments increased dramatically, with a
noteworthy 52% rise in total NIBSS Instant Payment (NIP) transactions by October 2023
when compared to January of the same year. The Central Bank of Nigeria’s move to reform
the Naira with the goal of controlling cash circulation and lowering reliance on physical
money set this off.”
It went on to say that as digital payments proliferated, Tier-1 banks were overtaken by a
number of transaction failure situations; however, fintech companies like Opay, PalmPay,
and Moniepoint stepped up to the plate and significantly altered consumer preferences.
