Nigerian banks, exploitation and Sterling Bank Example

By Enyeribe Anyanwu

An event took place recently in the nation’s banking sector, which, unfortunately has not attracted enough attention and the commendation it truly deserves.

On April 1, the Sterling Bank stunned Nigerians with the announcement that it has cancelled all bank charges on its online local transactions, stating that it would no longer collect any money for online transactions by its customers. Under the new policy, Sterling customers will enjoy free transfers for all local transactions.

When this announcement was made, many thought it was either April fool since it was made on April Fools’ Day, or a mere marketing stunt.

But the announcement turned out to real, as the bank wasted no time in confirming that the zero-transfer fee policy was real and had taken immediate effect. Customers who made transactions confirmed this to be real as some transferred up to N100,000. 00 without incurring any charge.

Confirming the new policy, Obinna Ukachukwu, the bank’s Growth Executive in charge of Consumer and Business Banking said, “We believe access to your own money shouldn’t come with a penalty. This is more than a financial decision, it’s a values-based one. It reflects our commitment to making banking fair, inclusive, and truly customer-focused.”

By this action, Sterling Bank demonstrated that it is has been feeling the pains of Nigerians, and that it is truly a customer-focused bank. It demonstrated that it has not been happy with the way Nigerian banks have been sharing the meagre earnings of poor Nigerians with them in the name of various bank charges. It broke off from a system that has been declaring jumbo profit with the blood and sweat of its customers.

Online transactions was introduced as a way of achieving the policy of a cashless society and to make banking easy, seamless and less time-consuming. Nigerians were wooed and cajoled before the embraced online banking, especially with the hardships engineered at different times by both the Central Bank and the commercial banks.

After getting ordinary Nigerians to embrace the new electronic banking, the banks now made it a weapon of exploitation and stealing of customers’ funds.

By scrapping transfer charges, Sterling Bank has become the first major Nigerian bank to take a definitive stand against the long-standing exploitation of customers by banks which charge them for everyday digital transfers.  The bank’s gesture, no doubt, translates into significant savings, particularly for individuals and new small business owners who make frequent daily transfers via online platform.

This is not the first time that Sterling Bank would demonstrate its humane and customer-focused disposition. During the COVID-19 pandemic, the bank provided supplementary payments to healthcare workers in public hospitals. This came at a time when others were unwilling or unable to offer additional support.

With the way it stood out at that trying period till now, Sterling Bank has demonstrated love and empathy for its customers, as well redefined the meaning of responsible banking, away from its peers that claim to be customer-focused while only focusing on themselves. The bank has since showed what it means to be a responsible and responsive banking institution.

In reaction to Sterling Bank’s action, one of Nigeria’s opinion leaders and former Aviation Minister, Chief Osita Chidoka, said, “Sterling Bank did the math – and still chose the people. They gave up over billions in transfer charges just to give Nigerians breathing room.”

He pointed out that “If the top four banks in Nigeria earned a combined ₦186 billion from transfer charges last year, despite already posting record profits, then they cannot claim that removing those fees would break them.”

He remarked that the bank did not wait for the law, but was led by conscience, calling on fellow Nigerians to “support institutions that prioritize our welfare, and reject those that profit by exploiting us.” One cannot agree less.

Chidoka demonstrated this support and appreciation by promptly opening an account with the bank.

Nigerians should follow this example. They should reciprocate Sterling Bank’s gesture, and demonstrate their support for the bank whose claim of customer welfare and progress is not an advertisement stunt or mere lip-service.