In this economic downturn in Nigeria, many business sectors have been facing financial crises but this is an exception in the banking industry.
They employ ways through different banking and non-banking related services to make more profits at the expense of customers. Making profit in business is the sole aim of any organization but not at the detriment of customers.
In the developed world, an average bank makes majority of their profits from banking related services. But in Nigeria the reverse is the case, an average Nigerian bank makes their profits from non-banking related services.
These services are supposed to be additional sources of income and not a major source of income as we currently experience in Nigeria.
There are over 100 million bank accounts in Nigeria but only about 60 million of them are active according to a report released by Central bank in December 2017.
Judging from this, most of the Nigerian banks account are inactive which means the banks derive their profit from non banking and non financial related sources
Ways In Which Banks Impose Bills On Us
1. THROUGH SMS: For every transaction you make daily, the bank sends you an SMS notification about the transaction. This notification service is supposed to be free as a value-added service, but banks use this as a major source of income. So if a bank has a million transactions in a month, the bank would make millions of naira only from SMS charges in a year
2. THROUGH DEDUCTIONS: Have you ever wondered about some ridiculous and irrelevant deductions banks impose on your bank accounts? some are just unexplainable. For example, if all the Nigerian bank decides to deduct 2 naira from all account holders monthly, imagine how much they will make from such deductions in a month, that will be over 2 Billion Naira in a month. But most times customers often ignore such little deductions, but if you think of such deductions you will realize they run into billions yearly.
3. THROUGH MAINTENANCE FEE: Often times, we receive alerts notifying us on maintenance fees being deducted from our account. If you may ask me, what are they maintaining? Maintenance charges like credit or debit card charges are deducted monthly from every Nigerian bank account.
4.THROUGH TRANSFER CHARGES: We often get charged when we do interbank transfers. For example, if there are over 1 million interbank transfers in a month, the Nigerian banks make between 50 to 100 naira on each of those transfers leading to millions of naira monthly.
5. THROUGH ATM CHARGES: Another way bank impose bills on customers is when you are making withdrawals from another bank ATM after 3 different attempts in a month. A service fee of 65 naira is charged on the fourth attempt which is deducted directly from your account.
It is advisable for one to grounded on the terms and conditions of various financial institutions. Next time you go behind the counter, ask questions and be enlightened to avoid story that touch.