Access Holdings Plc, the parent company of Access Bank, has set a new benchmark in Nigeria’s financial services sector with a record-breaking ₦193.5 billion ($120.5 million) investment in technology infrastructure and electronic business for 2024. This strategic tech expenditure—representing a 147% surge from the previous year—not only positioned Access Holdings as the sector’s highest tech spender but also coincided with a significant 73% drop in fraud-related losses, according to its latest full-year financial statement.

Outpacing competitors such as Guaranty Trust Holding Company (GTCO) Plc, United Bank for Africa (UBA) Plc, and Zenith Bank Plc, Access Holdings is aggressively reinforcing its digital and compliance management systems to drive resilience, growth, and fraud mitigation.

The surge in spending was driven by inflationary pressures linked to foreign exchange volatility, major upgrades to its core banking infrastructure (notably Oracle’s Flexcube), expanded cybersecurity frameworks, and strategic expansion into Tanzania, Namibia, and Hong Kong. These initiatives are part of the group’s broader effort to modernize systems and defend market share from agile fintech disruptors like Opay, PalmPay, and Moniepoint.

“Our technology spend reflects a deliberate balance between capital investments in new capabilities and operational expenses to support existing infrastructure,” the company said in a statement. “Approximately 80% of our operational IT costs are allocated to licensing, with the rest distributed between support services and professional consulting.”

Industry analysts attribute the steep decline in fraud losses—from ₦6.15 billion ($3.8 million) to ₦1.64 billion ($1 million)—to Access Holdings’ enhanced fraud detection, regulatory compliance software, and robust internal controls.

“It’s likely Access invested in advanced cybersecurity infrastructure, which directly contributed to the reduced fraud losses,” said Mobifoluwa Adesina, an investment research analyst at Afrinvest West Africa.

Chapel Hill Denham analyst Nabila Mohammed further emphasized that such IT investments promote financial crime prevention, improve customer trust, and drive digital transaction growth, which in turn increases fee-based revenue for the bank.

In comparison, GTCO raised its IT budget by 48% to ₦88 billion, UBA by 107% to ₦48 billion, and Zenith by 100% to ₦67.3 billion. While GTCO saw a slight decline in fraud losses to ₦159.1 million, Zenith reported a sharp rise from ₦383.4 million to ₦5.26 billion—highlighting disparities in regulatory risk management and the need for more comprehensive compliance analytics.

These developments come amid rising fraud trends in Nigeria’s digital finance space. According to the Nigeria Inter-Bank Settlement System (NIBSS), digital fraud cases surged by 112% between 2019 and 2023, with corresponding financial losses ballooning by 496% to ₦17.67 billion ($11.1 million). Most attacks target computer systems, mobile platforms, and PoS terminals, exposing gaps in cybersecurity compliance.

Similarly, data from the Financial Institutions Training Centre (FITC) showed that fraud-related losses rose to ₦10.1 billion in Q3 2024, from ₦1.18 billion in the same period in 2023. However, quarter-on-quarter figures suggest improvement, as total losses dropped from ₦42.8 billion—an encouraging sign of regulatory technology solutions beginning to yield impact.

“Stronger trust and confidence in Nigeria’s financial ecosystem will be critical to long-term digital adoption and capital inflow,” Mohammed added.

With a market capitalisation of ₦1.15 trillion, Access Holdings has not yet disclosed its tech spend for 2025. However, it signaled plans to scale investment in compliance training, staff capacity building, and advanced risk assessment technologies, positioning itself for more localized innovation and reduced foreign currency exposure.

“We will continue investing in modernization, innovation, and customer-centric digital solutions while aligning our tech budget with global best practices in financial compliance and operational efficiency,” Access Holdings noted.

As the demand for secure, transparent, and digitally advanced banking solutions grows, Access Holdings’ aggressive RegTech-led strategy offers a roadmap for compliance-driven transformation, reinforcing Nigeria’s evolving regulatory technology landscape.