Sterling Bank has taken a groundbreaking step by eliminating transfer fees on its OneBank digital platform, a move that could reshape the landscape of the Nigerian banking sector.
During a news conference in Lagos, Chief Executive Officer Abubakar Suleiman unveiled the initiative, emphasizing that it underscores the bank's commitment to providing affordable and accessible banking services to Nigerians.
Suleiman highlighted that Sterling Bank is the first major Nigerian lender to completely forgo transaction fees on its own app, marking a transformative shift in the industry.
“We believe that banking should be a tool for economic empowerment, not a means of extracting wealth from our customers. This is not a gimmick. This is the future. And it starts now,” Suleiman asserted, pointing out that Nigerians have long been burdened with fees. “It’s time to put an end to this practice and give our customers the freedom to manage their finances without unnecessary charges,” he added.
The decision follows years of investment in digital transformation, where Sterling Bank prioritized homegrown technology over third-party solutions. Suleiman explained that the bank had developed a custom callback system and migrated to its own platform, capable of supporting 50 times its current customer base. This strategic move allowed the bank to cut costs and pass those savings on to customers.
“The zero-transfer-fee policy applies exclusively to OneBank users, with new customers receiving a complimentary AfriGo debit card and lifetime fee-free transfers,” he said.
Suleiman emphasized that the initiative is an “economic statement” aimed at supporting customers and small business owners frustrated by high fees. “We’re not just talking about small change; we’re talking about significant amounts of money that can make a real difference in people’s lives. By removing transfer fees, we’re giving our customers more control over their finances and helping them achieve their goals,” he explained.
Obinna Ukachukwu, Growth Executive for Consumer and Business Banking, also elaborated on the policy, noting that it rewards loyal customers and offers lifetime benefits to those joining in April. “We’re committed to building long-term relationships with our customers, not just transactional ones,” he said.
Looking ahead, Ukachukwu revealed that Sterling Bank plans to expand its offerings with new products and services, such as digital payment solutions and microfinance options, to further enhance the financial wellbeing of individuals and businesses.
Although the bank will still absorb transaction costs, Ukachukwu expressed confidence in the move, hoping other banks will follow Sterling's lead. “We’re willing to take a hit to our bottom line if it means creating a more customer-friendly banking environment,” he said.
By scrapping transfer fees, Sterling Bank is aiming to set a new benchmark for the banking industry, potentially leading to broader changes across the sector.
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