Guaranty Trust Holding Company Plc (GTCO), Nigeria’s leading financial services group, is beginning to reap the rewards of its aggressive technology investments. In the first half of 2025, its digital channels—GTWorld and GAPS/GAPSLite—handled transactions worth ₦35.8 trillion ($24.6 billion), a 19.3% rise from ₦30 trillion ($20.6 billion) in the same period of 2024.
The performance underscores how traditional banks, long perceived as slow-moving giants, are adapting to the fintech challenge. As neobanks and digital-first players like OPay and PalmPay define convenience and speed, GTCO’s scale and infrastructure are proving that legacy institutions can still compete in Nigeria’s fast-evolving payments landscape.
A Big Tech Bet Pays Off
Since 2021, GTCO has increased its technology spending by nearly 451%, from ₦6.85 billion ($4.71 million) to ₦37.76 billion ($25.95 million) in H1 2025. The goal: rebuild its technology backbone and close the innovation gap with fintechs. In 2024 alone, tech spend surged by 48.4% to ₦88 billion ($60.47 million), reflecting the bank’s resolve to expand its digital footprint and strengthen reliability across all touchpoints.
This investment mirrors a broader industry trend. Six of Nigeria’s largest banks collectively raised their tech budgets by 74.5% to ₦268.7 billion ($184.65 million) in 2024—funding core banking upgrades, better digital channels, and advanced fraud detection systems.
The Digital Shift
The surge in GTCO’s digital volumes fits into Nigeria’s wider payment transformation. Instant payments across the country rose 78.3% to ₦1.07 quadrillion ($735.3 billion) in 2024, up from ₦600 trillion ($412.3 billion) in 2023. By Q1 2025, the figure had already reached ₦284.99 trillion ($195.85 billion).
A report by Worldpay identified Nigeria as the country with the sharpest global decline in cash transactions over the past decade—down 59% between 2014 and 2024. This shift, powered by smartphone penetration, dependable fintech platforms, and cashless policy nudges from the Central Bank, has made digital payments the default for millions.
Digital Revenue Soars
GTCO’s digital pivot is now a clear earnings driver. E-business income jumped 172.6% to ₦28.61 billion ($19.66 million) in H1 2025, compared to ₦10.49 billion in H1 2021. The segment now contributes 18.9% of total fees and commission income (₦151.46 billion), underscoring how digital activity has become central to GTCO’s profitability mix.
Its fintech arm, HabariPay, is also scaling rapidly. The subsidiary—launched in 2022 following a pivot from the earlier “Habari” super app—has multiplied profits 12-fold in three years, from ₦322.9 million ($221,898) in H1 2022 to ₦4.02 billion ($2.76 million) in H1 2025. The brand’s flagship product, Squad, now competes head-on in Nigeria’s booming PoS and payment gateway space.
Fintechs Still Lurking
Despite banks’ progress, fintechs continue to hold an edge in speed and user experience. Frequent downtimes and integration lags have long plagued legacy banking systems, driving frustrated customers to fintech platforms.
PalmPay claims 15 million daily transactions with a 99.5% success rate, while OPay says it handles 100 million transactions daily from 10 million active users. During the CBN’s cash crunch in 2022 and major network glitches in 2024, these platforms became lifelines for millions of Nigerians, cementing their position as everyday payment tools.
“Mobile money wasn’t always perceived as viable,” said PalmPay Managing Director Chika Nwosu in May. “We identified a core problem—system reliability—and invested heavily in technology that’s efficient and stable.”
Why Banks Still Matter
Yet, fintech dominance has limits. Nigerians may prefer mobile wallets for quick transfers, but their trust—and large deposits—remain with traditional banks. GTCO’s 2.99 million active digital users processed ₦35.8 trillion ($24.6 billion) in H1 2025, surpassing the entire mobile money industry’s ₦20.71 trillion ($14.23 billion) in Q1 2025—despite mobile money having 17 licensed operators.
Banks’ nationwide branches, long history, and face-to-face dispute resolution continue to anchor customer confidence. For now, trust remains their moat.
The Next Phase
Looking ahead, GTCO plans to deepen its digital transformation using AI, machine learning, biometrics, and advanced analytics to personalise banking experiences and enhance risk management.
In its latest offer prospectus, the group disclosed its intent to “expand and enhance digital retail channels to further improve customer experience.”
With its tech investments translating into real value and user traction, GTCO’s story is proving that traditional banks—when nimble and data-driven—can still win in Africa’s fintech-dominated future.