Sterling Bank’s CEO, Abubakar Suleiman, has ignited a conversation within the Nigerian banking sector by urging other financial institutions to eliminate bank transfer fees for local online transactions. This call to action follows Sterling Bank’s own pioneering decision to abolish these charges for its customers, a move initially met with skepticism due to its announcement on April 1st, often associated with pranks and lightheartedness. However, the bank has firmly asserted that this is a genuine policy shift, solidifying its position as the first major Nigerian bank to take this significant step towards enhancing the customer banking experience. Suleiman emphasizes that this is not a fleeting marketing tactic but a foundational change reflecting the future of banking, a future where customers are not penalized for simply moving their own funds within the financial system.
The impetus for this transformative move, according to Suleiman, lies in years of dedicated digital transformation undertaken by Sterling Bank. The bank has invested heavily in building a robust, custom-designed callback system capable of handling the demands of over five million customers and processing a staggering volume of transactions, exceeding 180 million. Further demonstrating its commitment to technological advancement, Sterling Bank has transitioned from a legacy European core banking system to a proprietary platform specifically engineered for scalability and future growth. This homegrown platform, coupled with the deployment of a private cloud environment with ample capacity to surpass current and projected demand, positions Sterling Bank for sustained growth and enhanced service delivery. Suleiman asserts that having built this powerful infrastructure, it’s time to share the tangible benefits with the customers who form the heart of the banking ecosystem.
Beyond simply absorbing the costs themselves, Sterling Bank is actively encouraging other financial institutions to adopt a similar approach. Suleiman stresses the importance of collective action within the banking sector, recognizing that while Sterling Bank has taken the first step, a broader industry-wide adoption would amplify the positive impact on Nigerian banking customers. He acknowledges that the choice ultimately rests with each individual institution but underscores the potential for a unified front to reshape the banking landscape for the betterment of all stakeholders. Suleiman expresses a strong belief that Nigerian banks possess the financial strength to eliminate these fees without compromising profitability, a hypothesis they intend to prove through their own actions. He argues that a collaborative effort across the industry would expedite this transformative change, fostering greater customer satisfaction and trust in the banking system.
Obinna Ukachukwu, Sterling Bank’s Growth Executive for Retail, Consumer, and Business Banking, echoes Suleiman’s sentiments, reinforcing the call for industry-wide adoption of fee-free transfers. He emphasizes that the elimination of these charges is not merely a symbolic gesture but a pivotal step towards realizing Sterling Bank’s long-held vision of being a truly customer-centric institution. Previously, technological limitations hindered their ability to fully achieve this goal. However, with their newly enhanced and flexible technology stack, they are now poised to deliver a more personalized and beneficial banking experience. Ukachukwu underlines Sterling Bank’s commitment not only to its own success but also to the broader well-being of the Nigerian financial system. He positions the bank as a catalyst for positive change within the industry, urging their peers to embrace this customer-focused approach and contribute to a more equitable and efficient banking ecosystem.
Ukachukwu highlights that even with the removal of transfer fees for their customers, Sterling Bank continues to bear the cost of these transactions when interacting with other institutions, underscoring their dedication to this initiative. He sees this as a transformative role, demonstrating their commitment not just to their own organization, but also to the wider Nigerian population, the country as a whole, and the entire financial system. He advocates for the industry to collectively move towards this model. By absorbing the costs associated with inter-bank transfers, Sterling Bank is effectively subsidizing transactions within the wider banking network, further emphasizing their commitment to fostering a more customer-centric financial ecosystem. This action underscores their belief in the long-term benefits of a fee-free environment, even if it requires them to bear a greater financial burden in the short term.
The practical implication of Sterling Bank’s new policy translates to significant cost savings for their customers, particularly those who frequently conduct online transactions. Individuals and small business owners are likely to benefit the most from the elimination of these charges, as frequent transfers often form an integral part of their daily financial operations. By removing this financial barrier, Sterling Bank aims to empower individuals and businesses, allowing them to manage their finances more efficiently and effectively. This move also aligns with the growing trend towards digital banking and the increasing reliance on online transactions, further emphasizing Sterling Bank’s commitment to meeting the evolving needs of its customers and fostering a more inclusive financial landscape.
