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Technology Experts Warn, Traditional Banking to End 2025
Technology experts have predicted that by year 2025 to 2030, a market economy could readily emerge without banks, as we have traditionally known them.
Consequently, they urged banks in the region to embrace technology and redefine their operations models to meet the emerging demographic and social change or lose relevance, as more core banking services would be delivered outside the regulated banking industry.
The experts warned that the current shape and makeup of the banking industry in Africa and particularly in Nigeria is inevitably going to change.
The sheer scope and speed of evolution in customer behaviour, technology, changing market dynamics and aggressive non-bank competitors such as telcos and technology companies mean banking in the future cannot simply be a continuation of banking as it has been.
Scores of industry stakeholders including bankers, financial analysts, media, risks analysts and financial technologists who gathered in Lagos at the eNNovators Breakfast Series (EBS) 10, organised by financial technology magazine agreed that for banks to continue to be relevant, management of the banks should invest heavily in technology, rediscover and reassert their roles in society and connect with millennial generation aspirations.
Experts at the interactive knowledge-sharing EBS, which has as its theme 2025: the End of Banking as We Know IT agreed that Central Banks across Africa require a radical orientation. They informed that Central Banks need to change their mindset and approach, as currently banking regulators appear to be focused on tactical responses and their strategic objectives for the future of banks and banking are clouded by political expediency and the ‘too big to fail’ debate.
Emmanuel Agha, CEO of Innovectives, an e-payment company, who presented the lead paper, which is a summary of PricewaterHouseCoopers’ research on “The future shape of banking – time for reformation of banking institutions”, explained that banks are facing rapid and irreversible changes of which the current models are no longer sustainable into the future.
According to him, while the PwC paper did not looking at the end of banking as a grouping of services focused on meeting financial needs, it is imperative to look at the end of banking and banks as we currently know them.
He warned that a failure to adapt could also mean the end of some regulatory bodies and instruments.
Agha explained that the substitution of non-bank providers of banking services is a challenge, which does not reflect in banking regulatory frameworks, or yet – fully at least – in policy and regulatory change agendas.
The Innovectives CEO argued that, “the challenges and dilemmas posed by the parallel changes in technology, customers and revolution are not confined to the incumbent banks or even the non-bank pretenders. Banking policy and regulatory community would face its own challenges and struggle for relevance”.
Quoting from the research, Agha painted a future with three fundamental hypotheses. The first is a future in which core banking service delivered outside of the regulated banking industry. The second is a situation where banks still have advantages but – to be part of the future – they need to invest heavily, rediscover and reassert their core role in society, and secure the ongoing support of policymakers.
The third harped on regulators, regulation and the need to radically change orientation, realignment “from policing to protecting and with public policy shifting its focus – to some extent – from institutions to markets and services”.
Also speaking, Chinenye Mba-Uzoukwu, managing partner, Grand Central, who presented supporting paper noted that bankers today are challenged intellectually and managerially to respond to a socio-economic formation undergoing radical change.
According to him, “A banker is challenged to claim a role in the emerging dispensation or be shunted aside by the more professional group outside the sector. He faces the task of redefining his roles and relationship; his competition and alliances; his goals and mission. His key resources in this new dispensation are information technology”.
He stated that one might state unequivocally that the extent to which “a financial institution commits to, and implement a pervasive deployment of IT tools and strategies will be the primary indices for accessing growth and longevity in the new dispensation”.
He therefore identified several drivers of the new dispensation to include convergence, ubiquity, omniscient, elastic, infinite and speed.
Others are diversity, personalization, free, fragility and openness.
In his reaction, ‘Deremi Atanda, executive director, SystemSpecs Limited, argued that technology will continue to be a major disruptor across all industries, particularly in banking.
Atanda said technology itself now rides on social trends as against technology leading social trends as it was largely before now.
He also warned the regulator that technology innovation especially those that emerge based on social trends can hardly be legislated.
He said there would be a deeper interface and partnership between the banking industry and technology providers. According to him, more banks will exit being “IT Businesses” and leverage multi-layered and multi-partner technology services collaborations. Besides, he predicted that it would become increasingly difficult for banking brands to present themselves strictly as banks because technology firms are already presenting themselves as banks.
He disclosed that major technology innovations will be birthed in the banking environment, which will lead the redefinition of banking, and these will attract global attention and promotion of these local technologies to the global landscape.
“Disaggregation of the banking industry will continue to be accelerated with the emergence of smaller trust units that offer multiple services of which “transformed contemporary banking” will just be one of their services,” he submitted.
Also, Niyi Ajao, executive director, Technology and Operations, Nigerian Inter-Bank Settlement System (NIBSS), said managing a transformation programme of this scale would be a huge challenge for most of the banks in the region.
He however explained that banks do not need to do all of this in-house, since at least some of the innovation and technology work can be achieved through partnerships.
Collins Onuegbu, executive vice chairman, Signal Alliance, said banks have to invest heavily in customer service and operational innovation, at least at the pace and standards set by telcos and technology companies that are gearing up to provide banking services. “The banks must change their mindset. They must stop treating their customers just as numbers,” he warned.
Ola Olukoyede, chairman of the Economic and Financial Crimes Commission (EFCC), has disclosed that the commission recovered more than N7.2 million stolen from the bank account of a serving judge by suspected internet fraudsters in a midnight cyberattack.
Ola Olukoyede, Chairman of the Economic and Financial Crimes Commission (EFCC).
Olukoyede made the disclosure at the public presentation of two books authored by retired High Court judge, Justice Alaba Omolaye-Ajileye.
He said the serving judge, who is from a South-South state, contacted him around 1:00 a.m. after receiving multiple debit alerts indicating that funds had been withdrawn from her account.
According to him, the stolen money represented savings the judge had accumulated over six years to finance her child’s education.
Olukoyede said the EFCC immediately swung into action and successfully recovered the entire sum before 6:00 p.m. on the same day.
He said the incident underscored the increasing sophistication of cybercriminals and the urgent need for stronger collaboration among law enforcement agencies, the judiciary and members of the public in tackling financial crimes.
The EFCC chairman also called for amendments to Nigeria’s legal framework to accommodate the use of artificial intelligence (AI) in criminal investigations and prosecutions.
According to him, existing evidence laws should be reviewed to recognise AI-generated evidence as technology continues to reshape crime detection and investigation.
Also speaking at the event, former Attorney-General of the Federation and Minister of Justice, Chief Kanu Agabi (SAN), urged anti-corruption agencies to intensify efforts to trace and recover public funds allegedly stolen and stashed in foreign countries.
Agabi stressed the need for sustained collaboration among relevant institutions to strengthen Nigeria’s anti-corruption efforts and improve accountability in public service.
In his remarks, a former President of the Nigerian Bar Association (NBA), Chief Wole Olanipekun (SAN), called for stricter enforcement of the country’s cybercrime laws to curb the growing menace of internet fraud.
Olanipekun said effective implementation of existing laws, alongside stronger institutional cooperation, would help address the increasing threat posed by cybercriminals to individuals and the nation’s financial system.
Federal Government has cleared nearly N39 billion in outstanding pension liabilities owed to retirees under the Defined Benefit Scheme (DBS), including former employees of the defunct Nigerian Telecommunications Limited (NITEL), Mobile Telecommunications Limited (MTEL), the Power Holding Company of Nigeria (PHCN) and other federal government agencies.
The Pension Transitional Arrangement Directorate (PTAD) disclosed this in a statement, saying the payments were in line with President Bola Tinubu’s Renewed Hope Agenda, which prioritises the settlement of inherited pension liabilities and improved welfare for retired public servants.
According to the directorate, the largest component of the payment, amounting to N25 billion, covered about 35 months of outstanding pension arrears owed to nearly 10,000 eligible retirees of the defunct NITEL and MTEL.
PTAD also said it disbursed about N9.5 billion as the first tranche of Back End Computation (BEC) arrears to eligible pensioners of the defunct Power Holding Company of Nigeria.
The Executive Secretary of PTAD, Mrs Tolulope Odunaiya, described the payments as a significant milestone in the Federal Government’s efforts to clear inherited pension obligations and strengthen confidence in the Defined Benefit Scheme.
Odunaiya said the settlement was made possible following presidential approval granted in 2025 and funding provided under the 2026 Appropriation Act.
She noted that the intervention had enabled the directorate to resolve long-standing pension liabilities affecting thousands of retirees.
“The successful settlement reflects the Federal Government’s commitment to sustaining pension reforms and ensuring that retirees receive their entitlements promptly in line with the objectives of the Renewed Hope Agenda,” she said.
Odunaiya thanked the affected pensioners for their patience while the liabilities remained outstanding and reaffirmed PTAD’s commitment to transparent, efficient and pensioner-focused service delivery.
She added that the directorate would continue to work towards improving pension administration and ensuring timely payment of retirees’ benefits.
A Federal High Court, Lagos has declared Mrs. Ebele Okpala, a female banker with Keystone Bank, wanted over alleged N35 million fraud.
Apart from declaring the banker who is said to be outside the country wanted, Justice deinde Dipeolu, trial judge in the matter, also directed the Department of State Security (DSS), Nigerian Immigration Service (NIS), and Nigeria Customs Service (NCS), to arrest her upon arriving the country.
Justice Dipeolu made the above order while granting a motion ex-parte marked FHC/L/530C/2024, filed and moved by M. Bello, on behalf of the Nigeria Police.
In the motion, Ebele Okpala and one Perpetual Onyeto, also a banker were listed as first and second defendants/respondents in the suit, while DSS, NIS and NCS were listed as cited parties/respondents.
In urging the court to make the above orders, Bello, informed the court that the application was pursuant to several sections of the Administration of Criminal Justice Act (ACJA) 2015, and under the court’s inherent jurisdiction. Adding that the application was supported by an affidavit deposed to by Inspector Tope Akerele of the Force Criminal Investigation Department (FCID), Special Fraud Unit (SFU), Ikoyi, Lagos.
In granting the application, Justice Dipeolu held, “After considering the application and the supporting affidavit, the request had merit and granted all the reliefs sought by the prosecution.
“That an order is hereby made that the 1st defendant/despondent be declared wanted and placed on the wanted list of the Nigeria Police Special Fraud Unit, 13, Milverton Road, Ikoyi, Lagos until she is arrested.
“That an order is hereby made compelling cited parties/respondents to assist in apprehending 1st defendant/Respondent once he enters into the country.
“That an order is hereby made permitting the Publication of the name of the 1st defendant/despondent in the National Daily Newspapers and Social Media handles by the Nigeria Police Special Fraud Unity Ikoyi, Lagos for the purpose of fulfilling the requirement of the Order 1 above.”
Recall that both the wanted banker and the second defendant/respondent were previously arraigned before the court by the operatives of the police Special Fraud Unit, PSFU.
Specifically, the two bankers were arraigned before the court sometimes in September 2024, on alleged conspiracy, theft, money laundering, fraudulent lift of lien placed on bank’s customer’s account and obtaining the sum of N35 million by false presence.
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