LAGOS: Sterling Bank has announced that it has returned more than ₦1.6 billion to customers since introducing its zero-transfer fee policy a year ago, as the lender celebrates the first anniversary of the initiative aimed at eliminating charges on digital transfers.
The policy, which took effect on April 1, 2025, removed transfer fees on the bank’s digital platform, OneBank, making Sterling the first major Nigerian bank to waive revenue from customer online transactions.
The move was widely regarded as a bold step within Nigeria’s banking sector, where transfer charges have traditionally been a key source of income for financial institutions.
In a statement released on Wednesday, the bank said the initiative had directly benefited millions of customers, including individuals, small businesses, and digitally savvy users who rely heavily on mobile and online banking services.
The Chief Executive Officer of the bank, Abubakar Suleiman, explained that the decision to remove transfer charges was part of a deliberate strategy to prioritise customer value and reshape how banking services are delivered in the country.
“We made a deliberate decision to stop charging for the movement of money and to build our model around delivering real value instead,” Suleiman said.
One year on, the outcome has validated both the principle behind that choice and the strength of the model itself.
According to the bank, the initiative has not only delivered financial relief to customers but has also accelerated adoption of digital banking services.
Transaction volumes on the platform have increased significantly over the past 12 months as more customers embraced the fee-free transfer option.
The bank added that the policy has also encouraged deeper engagement with formal banking channels, contributing to broader financial inclusion across Nigeria.
Sterling Bank attributed its ability to sustain the initiative to a long-term digital transformation strategy that began several years ago.
As part of this strategy, the bank migrated from legacy banking infrastructure to a homegrown core banking system supported by a scalable private cloud environment.
This transition, the bank explained, allowed it to significantly reduce operational costs while improving system efficiency and flexibility.
As a result, the savings generated from the technological upgrade enabled the institution to eliminate transfer fees without compromising its commercial sustainability.
Suleiman further noted that the bank’s transformation was not driven solely by technology but by a broader goal of building stronger capacity to serve customers more effectively.
“Our transformation was never about technology for its own sake, he said. It was about building enduring capacity to serve, to scale, and ultimately to deliver more value to our customers.
When that capacity matured, we made a conscious decision to return the benefits to the people who make the system work.
The Chief Marketing Officer of the bank, Donatus Okpako, described the anniversary as both a milestone and a sign of the bank’s evolving approach to customer-focused banking.
According to him, the initiative has challenged long-standing assumptions about how banks generate revenue and deliver value to their customers.
This initiative has challenged long-held assumptions about how banks create value, Okpako said.
We are demonstrating that it is entirely possible to run a strong, commercially sound institution while being fundamentally fair to customers.
He added that the ₦1.6 billion returned to customers represents more than just a financial figure.
The ₦1.6 billion represents real relief, real impact, and a rebalancing in favour of the customer. That principle will continue to guide what we build next, he said.
Industry observers say the initiative has sparked wider conversations across Nigeria’s financial services sector about pricing transparency and the value banks provide to customers, particularly as competition in the digital banking space intensifies.
Over the past few years, Nigerian banks have invested heavily in digital platforms, mobile banking applications and fintech partnerships as they compete to capture a growing base of technology-driven customers.
Sterling Bank noted that its One Bank platform has played a central role in driving this transformation, providing customers with simplified digital banking services that include payments, savings options and credit solutions.
Looking ahead, the bank said it plans to expand its offerings across payments, savings and lending products while maintaining its commitment to improving financial outcomes for Nigerians.
It also reaffirmed its intention to continue investing in technology infrastructure that supports innovation, accessibility and efficiency in banking services.
As the zero transfer fee policy enters its second year, Sterling Bank said it remains focused on raising the standards of what customers should expect from financial institutions in Nigeria, while promoting a more transparent and customer-friendly banking environment.
