Digital Payments Grow, But Trust Remains The Missing Link
Digital Payments Accelerate Across Nigeria
AS Nigeria’s digital payments ecosystem expands rapidly, financial sector experts are calling for deeper collaboration between banks and fintech companies to strengthen infrastructure, improve consumer protection, and sustain public confidence in the evolving system.
The call was made on Friday in Lagos during a panel session at the 2026 Conference of the Committee of Heads of Bank Operations, themed “Reimagining the Future of Cash in a Digital-First Economy.” Industry leaders agreed that while Nigeria has made significant progress in digital payments adoption, operational challenges and trust deficits continue to threaten long-term sustainability.
Banks and Fintechs: A Shared Responsibility
Speaking during the panel on “Reimagining Operations and Branches: Branch Transformation from Cash and Paper Counters to Digital Hubs,” participants stressed that neither banks nor fintech firms can independently secure the future of Nigeria’s payment system.
They argued that stronger partnerships between deposit money banks and payment service providers are essential to addressing issues such as transaction failures, delayed reversals, fraud, and cybersecurity risks that frequently frustrate users.
According to the experts, fragmented systems and weak interoperability have contributed to recurring payment disruptions, eroding consumer confidence despite rising transaction volumes.
Trust Remains the Core Challenge
President of the Fintech Association of Nigeria, Dr. Stanley Jacob, said digital payment adoption has increased significantly, but trust remains the sector’s most pressing concern.
“Adoption has grown, but trust remains the fundamental issue in digital payments,” Jacob said. He explained that many Nigerians still prefer to store their savings with traditional banks, even when they rely on fintech platforms for day-to-day transactions.
This behaviour, he noted, reflects lingering concerns about dispute resolution, data protection, and system reliability in purely digital platforms.
Why Bank Branches Still Matter
Despite predictions that physical bank branches would decline in relevance, panelists insisted they remain critical trust anchors in Nigeria’s financial ecosystem.
Jacob likened bank branches to hospitals, saying customers may not visit them daily but rely on them during emergencies.
“Nigerians treat bank branches like hospitals. You hope you never need them, but you cannot do without them in times of crisis,” he said.
Experts argued that branches are increasingly evolving into service centres focused on problem resolution, customer education, and advanced verification rather than cash handling.
Reimagining Branches as Digital Hubs
Panelists urged banks to redesign branches as digital hubs that support cybersecurity checks, high-value transaction authentication, and customer onboarding for digital services.
They noted that such transformation would require retraining staff, upgrading infrastructure, and integrating fintech solutions directly into branch operations.
According to the experts, branches can play a key role in resolving disputes arising from failed or disputed digital transactions, reinforcing consumer trust.
The Road Ahead
As Nigeria continues its shift toward a cashless economy, experts warned that growth without trust could undermine progress. They stressed that collaboration, transparency, and shared responsibility between banks and fintech companies would be essential in building a resilient and inclusive digital payments system.
