Nigeria's largest banks have reported record earnings in 2024, but their financial strength has not translated into brand momentum. According to a new report by Brand Finance, a London-based brand valuation consultancy, the banks recorded the weakest brand equity growth among Africa's top banking markets, trailing peers in Kenya, South Africa, and Egypt.

The report reveals that Access Bank, GTCO, Zenith Bank, UBA, and First Bank of Nigeria collectively earned ₦4.14 trillion ($2.58 billion) in 2024, yet their combined brand value grew just 5.37% to $1.57 billion. This sluggish growth contrasts with double-digit brand equity gains in Kenya and South Africa, where digital innovation and stronger customer trust drive value.

Babatunde Odumeru, managing director at Brand Finance Nigeria, attributed the slow growth in brand value to the banks' inability to effectively use their digital infrastructure to achieve financial inclusion. "Despite significant profits reported by banks, their brand value hasn't seen a corresponding increase, as the expansion of digital banking has not yet translated into a comprehensive impact," he said.

In contrast, Kenya's Equity Bank, Commercial Bank (KCB), and Co-Operative Bank saw brand value rise by 25.1% to $1.18 billion. South Africa's major banks, including Standard Bank, First National Bank, and Absa, followed with a 23.6% surge to $8.86 billion. Egyptian banks grew more modestly — 8.03% to $1.48 billion — but still outpaced Nigeria.

The report highlighted that on the top 22 African banking list, Zenith Bank and UBA were the only banks that saw a decline in their brand value, dropping by 16% and 26% respectively. In contrast, Access Bank, GTCO, and First Bank of Nigeria recorded brand growth, with increases of 17.8%, 31.6%, and 25.4%.

The gap in brand momentum is increasingly being filled by fintechs, which outpaced traditional banks in customer satisfaction ratings last year, according to a report by KPMG Nigeria. Fintechs have been able to leverage digital innovation to provide real-time loans, savings, and insurance to millions of previously unbanked users, thereby deepening financial inclusion and building brand trust.

In Kenya, commercial banks have integrated with platforms like M-Pesa to provide real-time loans, savings, and insurance to millions of previously unbanked users. Equity Bank and KCB, which posted combined profits of over $850 million (KSh110.6 billion) in 2024, have deployed mobile lending tools and scaled agent networks that make banking available, even in rural communities.

South African banks are leveraging digital-only offerings to drive scale and trust. TymeBank, launched in 2019, is Africa's first digital bank to break even, with nine million users. Capitec Bank's brand value skyrocketed by 81% in 2025 after a 21% spike in digital app adoption and savvy use of AI for customer engagement.

In Egypt, the Central Bank has aggressively pushed digital transformation, resulting in a 181% rise in financial inclusion between 2016 and 2024. State-owned Banque Misr is launching the country's first digital-only bank in the second half of 2025, while Abu Dhabi Islamic Bank Egypt is investing over EGP 1 billion ($19.6 million) in digital infrastructure and cybersecurity.

A strong digital banking offering (online and/or mobile) is crucial for building brand strength, according to Jenny Moore, strategy & insight consultant at Brand Finance Africa. "It is no longer just a functional feature or a competitive advantage; it has become an essential part of any banking offering and key to building brand love, brand reputation, and credibility," she said.

Despite initiatives like the Bank Verification Number (BVN) and National Financial Inclusion Strategy, about 37% of rural Nigerians remain outside the formal banking system in 2023, compared to just 17% in urban areas. Financial inclusion in Nigeria improved from 56% in 2020 to 64% in 2023, but progress remains uneven and urban-centric.

Traditional banks still prioritize high-net-worth individuals, middle-income families, and salaried urban workers, leaving vast informal and rural sectors underserved, unlike Kenyan banks, which scaled agent banking and mobile platforms to penetrate rural and underserved areas, deepening brand visibility and trust.

In response to growing competition from fintech companies and improving customer service, banks have increased their investments in technology. In 2024, six of them collectively spent ₦268.7 billion ($171.5 million) on IT upgrades, a 74.5% increase from ₦153.8 billion ($98.2 million) in 2023.

"The most effective path to brand growth today is through digital innovation," Babatunde of Brand Finance said. "Nigerian Banks must embrace deeper collaboration with fintechs to stay relevant and competitive in a rapidly evolving financial landscape."

Nigeria's largest banks must keep innovating or risk becoming financially rich but brand-poor, losing relevance, market share, and customer trust to more agile rivals across Africa.