Zenith Bank Expands Payment Infrastructure Amid Fintech Challenge

Zenith Bank, one of Nigeria’s foremost financial institutions, achieved notable progress in 2024, significantly expanding its payment infrastructure in response to escalating competition from fintech disruptors.

The bank reported a 14.8% increase in the deployment of its point-of-sale (POS) terminals, growing from 414,192 in 2023 to an impressive 475,524 in 2024. These terminals, essential tools for retail transactions, have become a vital revenue stream for the bank amidst the evolving digital payment landscape.

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The financial institution also recorded an 8.9% rise in the number of ATM cards issued, reaching 27.94 million by the end of 2024. Its network of ATM terminals saw a moderate 1.5% growth, now totaling 2,134 and representing approximately 12.7% of Nigeria’s ATM infrastructure, according to data from the Central Bank of Nigeria.

Despite these advancements, the bank faces mounting consumer frustration over increased withdrawal fees and concerns about ATM reliability. New regulatory adjustments raising cash withdrawal charges have fueled public criticism, particularly among lower-income earners who rely more heavily on cash transactions.

On the physical banking front, Zenith Bank maintained a cautious approach to expansion, opening seven new branches in 2024, which brought its branch network to 454. Additionally, it added one new cash centre, increasing the total to 167. This dual approach underscores the bank’s strategy of strengthening its digital infrastructure while ensuring physical banking access remains available in areas with slower digital adoption.

The bank’s investments in digital and physical platforms reflect its strategic efforts to stay competitive and deepen financial inclusion. However, with fintech competitors rapidly reshaping Nigeria’s payment ecosystem through innovative solutions, Zenith Bank’s long-term success hinges on its ability to adapt and offer improved value to merchants and consumers. The continued growth of digital wallets and agency banking presents both challenges and opportunities in this dynamic financial environment.