Access holdings sets new tech spending record, slashes fraud losses by 73%

Access Holdings Plc, the parent company of Access Bank, has made headlines with a record-breaking ₦193.5 billion ($120.5 million) investment in technology and electronic business in 2024, a 147% jump from the previous year and the highest among Nigerian banks. This bold move comes as the company reports a dramatic 73% drop in fraud-related losses, from ₦6.15 billion to ₦1.64 billion, according to its latest financial statement.

The surge in tech spending was driven by several factors: inflation, exchange rate volatility, major upgrades to its core banking software, cybersecurity enhancements, and expansion into new markets like Tanzania, Namibia, and Hong Kong. These investments, Access Holdings says, are necessary to support its fast-growing digital customer base and compete with fintech challengers such as Opay, PalmPay, and Moniepoint.

A company spokesperson explained that most of the IT budget goes to licensing (80%), support services (15%), and consultancy. “Our technology spend reflects a deliberate balance between capital investments in new capabilities and operating expenses that support existing systems,” the spokesperson said.

Analysts credit the sharp drop in fraud losses to these tech upgrades, especially in cybersecurity. “I suspect that the group invested in some cybersecurity infrastructure, especially given that the amount lost to fraud declined significantly,” said Mobifoluwa Adesina, an investment research analyst at Afrinvest West Africa Limited.

The impact is clear when compared to competitors: GTCO spent ₦88 billion on IT in 2024, Zenith Bank ₦67.3 billion, and UBA ₦48 billion, each well below Access Holdings’ outlay. While GTCO and UBA saw modest improvements in fraud losses, Zenith Bank’s losses spiked, highlighting the urgent need for stronger fraud prevention across the sector.

Nigeria’s banking sector has seen a surge in digital transactions, and with it, a rise in fraud cases. Yet, Access Holdings’ aggressive investment in technology shows that targeted spending can pay off, both in customer trust and the bottom line. The company plans to continue investing in modernization, innovation, and staff training to maintain its lead and further reduce risks.