Fidelity Bank Hikes SMS Alert Charges: Customers Bear the Brunt of Rising Telecom Costs
Critics Question Why Banks Keep Passing Costs to Consumers
Fidelity Bank Plc has announced yet another increase in charges for SMS transaction alerts, raising the fee from ₦4 to ₦6 per message starting May 1, 2025. While the bank pins the blame on “industry-wide” increases in telecom charges, many customers and industry observers are questioning why banks continue to pass operational burdens directly onto account holders.
In a notice to customers, the bank said the adjustment was necessary “to ensure we continue delivering secure, timely, and reliable transaction notifications.” However, the decision has sparked criticism from customers who see it as part of a growing pattern of hidden banking costs that erode account balances in the name of “service.”
“Please be informed that due to an industry-wide increase in SMS costs by telecommunications providers, the charges for SMS transaction alerts will be revised from ₦4 to ₦6 per SMS effective May 1, 2025,” the bank stated. It also noted that SMS alerts sent to international numbers may incur even higher charges.
But financial analysts argue that banks like Fidelity should be absorbing at least part of these increased costs, rather than shifting them entirely to the customer. “This is a customer service expense. Banks already earn massive revenues through multiple income streams, including account maintenance fees, lending interest, and digital transaction commissions. Why is the customer always paying more?” one industry expert queried.
In an era of digital banking, where institutions are saving billions by reducing brick and-mortar operations, the rising cost of a basic service like transaction alerts feels like a contradiction to many. Critics are calling for greater transparency and regulation to prevent banks from arbitrarily raising service fees under the guise of cost adjustments.
While Fidelity Bank promises to continue providing “value-added services” and “innovative solutions,” customers are left wondering if basic accountability and cost fairness will ever be part of that innovation.
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