How Kachasi Helped Power Fidelity Bank’s 23% Growth in Letters of Credit Commission

Fidelity Bank's Strategic Pivot

In the first quarter of 2025, Fidelity Bank reported a remarkable 23.38% year-on-year increase in commissions from letters of credit (LCs), contributing to a broader 30.1% rise in non-interest income, which reached ₦23.82 billion. This impressive performance wasn't merely a stroke of luck; it was the result of a deliberate strategy to optimize income from fee-based services, particularly in the trade finance sector.

In its recently published Q1 2025 financials, Fidelity Bank announced an impressive 23.38% year-on-year increase in letters of credit (LC) commissions, contributing to a broader 30.1% growth in non-interest income, which rose to N23.82 billion.

The performance wasn’t just about lending; it was about a deliberate pivot to optimising income from fee-based services, particularly in the trade finance space.

While many headlines focused on Fidelity’s 167.79% surge in pre-tax profit, the real story, especially for bank executives watching trade revenues, was how the bank quietly built new momentum in its trade finance operations. A key driver behind this: Kachasi, the end-to-end trade finance software developed by Union Systems.

The Digital Backbone of Trade Finance

At the heart of this transformation is Kachasi, an end-to-end trade finance software developed by Union Systems Limited. Kachasi automates the full lifecycle of international and local trade finance operations, including LCs, foreign bills, and related instruments. By digitizing these processes, Kachasi has significantly reduced manual bottlenecks, improved turnaround times, and enhanced visibility into obligations and cash flow exposures.

"In all my years working in trade finance as a banker, this is the best application I have ever seen." – Trade Finance Expert

The Tangible Benefits Of Efficiency, Compliance, and Revenue Growth

Fidelity Bank's adoption of Kachasi has yielded several measurable benefits:

Faster Processing: Automation has led to quicker transaction processing, enhancing customer satisfaction.

Error Reduction: Digitization minimizes human errors, ensuring accuracy in trade finance operations.

Regulatory Compliance: Seamless integration with Nigeria’s Trade Monitoring System (TRMS) ensures adherence to regulatory requirements.

Increased Revenue: The efficiency gains have translated into a significant increase in LC commissions.

A Broader Movement If Other Banks Embrace Kachasi

Fidelity Bank is not alone in recognizing the value of Kachasi. Other financial institutions, including FCMB, Wema Bank, Coronation Merchant Bank, and Rand Merchant Bank (RMB) Nigeria, have also deployed Kachasi to modernize their trade finance operations.

For instance, Wema Bank, known for pioneering Africa’s first fully digital bank, ALAT, integrated Kachasi into its systems to automate trade finance processes. This move has significantly reduced turnaround times and improved operational efficiency.

"This project will significantly reduce turnaround time, improve operational efficiency, and unlock new revenue streams for the bank." – Tajudeen Bakare, Divisional Head of Operations & General Service, Wema Bank

Similarly, RMB's transition from Finastra’s Trade Innovation to Kachasi underscores the software's robustness and adaptability to local and international trade landscapes.

Why Digitizing Trade Finance Is No Longer Optional

In an era marked by fluctuating interest rates, increased competition, and tightening margins, non-lending income has become a critical pillar for banks. Trade finance, traditionally seen as a complex and manual process, is now ripe for digital transformation.

Kachasi offers:

• Flexibility: Highly configurable to a bank’s business processes and regulatory needs.
• Operational Efficiency: Automation reduces workload and ensures continuity regardless of staff movement.
• Cost Savings: Prevents income leakages and tracks daily charge accruals.
• Advanced Technology: Features like Optical Character Recognition and Handwriting Text Recognition enhance document processing.

The Strategic Advantage When Learning from Fidelity Bank's Success

Fidelity Bank's experience serves as a blueprint for other banks aiming to turn trade finance into a growth engine. The strategic adoption of Kachasi has not only improved operational efficiency but also unlocked new revenue streams.

A Call to Action for Bank Executives

For C-suite leaders, the question is no longer "Should we digitize trade finance?" but "How quickly can we implement a solution like Kachasi?" Investing in such platforms is not just a technological upgrade; it's a strategic move towards measurable growth in non-interest income, improved customer experience, and regulatory compliance.