Banking

The sub-Saharan Africa business boom has lost a lot of its momentum in recent years, but mergers and acquisitions have picked up the slack. All across the area, banks are merging as an avenue to improve their balance sheets and gain market share in the lackluster-growth environment. Although this approach may work to achieve some goals, there are downside factors that banks should consider before jumping into the M&A lifeboat.

With federal regulators becoming more receptive to large deals, bank merger approvals have sped up under the Trump administration. Although the anticipated merger activity volume has slowed relative to early 2019 projections, the fact remains that attention to detail in the execution of these combinations has never been more important.

Today, International Banker is joined by Mr. Olukayode Pitan, managing director and CEO of Bank of Industry, to discuss the financial inclusion in Nigeria, the country’s SME sector and the role that the bank plays in improving the economy of Nigeria. Very good to have you here.

“The times they are a-Changin’” sung Bob Dylan in the 1960’s as the civil rights movement swept through the US and changed the direction of a Nation forever.Fast forward to 2019 and this anthem of change rings true for the banking sector. Whether it be emerging FinTech start-ups, regulatory bodies or the changing demands of their customers, it’s an industry that is being disrupted from all sides.

The world’s neediest people are particularly vulnerable to unexpected crises, which come in many forms, from catastrophic conflicts to calamitous cyclones. They need all the help they can get to weather the storms of life. The financial-service provider can throw a lifeline in the form of financial products that make the difference between sinking or swimming. In what practical ways are banks helping vulnerable people living through the most challenging circumstances?

Although Shariah-influenced finance has existed for centuries, the first modern Islamic banks were not established until the early 1960s. Today, Islamic banking is spreading throughout the Middle East and Africa, in countries where a majority of the population is Muslim. Combining modern technology with ancient religious principles, Islamic banking is rich with opportunity for financial firms seeking to serve this growing consumer market, especially those who have not been served well by conventional banks.

No one can deny that around the world, bank branches are shutting their doors, alarming consumer advocates. But who is mainly behind the trend away from brick and mortar and toward digital? As research proves, the prime mover is the customer, whose changing demands and expectations are causing the shift. Fortunately, today’s two main banking channels are not mutually exclusive; they can work successfully in tandem.

Developing markets surmount trials not faced by developed markets, as do their financial-services providers. Forward-looking banks in developing countries implement innovative approaches to maximize customer satisfaction in trying times. One such bank is Kenya’s Guardian Bank, which in its quest to provide its customers with only the best banking experience has developed initiatives that may set a new trend for banks worldwide.

Lebanon’s AM Bank is guided by a simple but powerful modus operandi: CAN-DO. According to this innovative bank, Can-Do means that its staff can provide exactly what its customers require of them: “a positive outlook and a will to deliver products, services and solutions that really answer” their needs. COO Nahla Bou-Diab spoke with us about the bank’s guiding motto and how it has yielded satisfied customers and staff alike.

A persistent problem in Africa is the financial-inclusion deficit. With 11 million citizens in South Africa alone being either underbanked or unbanked, the need to gather them into the banking fold is urgent. Recognizing this imperative, innovative teams such as Nedbank’s Retail and Business Banking have prioritised customer-centric digital avenues to reach more customers, entrenching themselves as the money experts who do good and give clients back the gift of time.