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Sterling Bank has explained that the reason it eliminated charges on online transactions was to ease the burden on its customers
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The managing director and CEO of Sterling Bank, Abubakar Suleiman, stated that banks do not impose charges for profitability purposes.
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He disclosed that roughly eight or nine software applications facilitate each immediate transaction.
Pascal Oparada from GaptekZone.ng has been covering technology, energy, stocks, investments, and economic matters for more than ten years.
Sterling Bank has provided an explanation for its decision to eliminate fees on online transactions with other banks.
On April 1, 2025, the bank informed its clients that all transfer charges to any financial institution would be waived.
Sterling Bank seeks to alleviate customers’ hardships
Sterling Bank has reinforced its position regarding the decision, viewing it as a sincere attempt to alleviate financial pressures on current clients.
At a recent press conference, Abubakar Suleiman, who serves as both the managing director and CEO of the bank, revealed that over the years, they have held numerous discussions regarding their clients’ challenges and strategies to alleviate these issues.
He mentioned that Sterling Bank acknowledged that as challenges increased, the minor charges customers incurred from everyday transactions turned into a source of frustration.
The head of Sterling Bank stated that banks are not motivated by greed; instead, they utilize advanced payment systems that rely heavily on cutting-edge technology, demanding significant financial outlays.
Sterling Bank MD explains reason for removing charges
Abubakar revealed that every instant payment requires about eight or nine different software to become successful, saying that most of the software is imported and is required to protect customers’ data and to ensure that the banks can trace transactions.
He said the banks charge to recover the cost of the money used to maintain the software, and that it barely even covers them.
He mentioned that many expenses incurred via technology do not appear as technological costs. He explained that banks shoulder the burden of losses arising from immediate payments.
“We aren’t simply aiming to charge; we charge because we rely heavily on costly systems that we depend on to recoup our expenses through this billing,” he explained.
As per his statement, Sterling Bank plans to return some benefits to its clients following considerable enhancements in their operational systems.
Sterling Bank makes history
He disclosed that the bank was the first to develop its core banking system utilizing Nigerian engineers and intends to localize the technology.
He mentioned that each time a customer starts a transfer, a corresponding switching company needs to receive payment.
The bank’s leader disclosed that each fee the bank removes can enhance transactions, noting that as more individuals become aware that transfers come at no cost, they are increasingly inclined to engage in them.
He revealed that the policy was for existing customers and customers who will open accounts with the bank in the next few months.
As per his statement, the bank would choose to expand the service with the aim of catering to its current clientele.
Barclays Bank communicates with other financial institutions.
The bank stated that it would cease accepting funds for all domestic online transactions initiated by its clients.
The move elicited a debate among industry players, with many saying it was an April Fools’ Day prank on the banking populace.
Sterling Bank became the first commercial bank to end the practice of charging customers in the guise of online transfers.
The former minister has joined other Nigerian citizens in opening an account with Sterling Bank.
GaptekZone.ng
Previously mentioned was the news that ex-Aviation Minister, Chief Osita Chidoka, was one of the Nigerians keen on opening an individual account with Sterling Bank after the institution decided to remove fees from domestic digital transfers.
Customers sending money to Sterling Bank accounts as well as those transferring to other banks can enjoy these free-of-charge transactions.
On April 1, Sterling Bank grabbed attention by declaring it would eliminate all domestic transfer fees on its OneBank platform.
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