E-Financial
Retail Banking: Some Banks on Path to Extinction- Experts
In a bid towards redefining retail banking as it affects customers satisfaction, experts has harped on financial inclusion through alternative digital delivery channels, warning that some retail banks are heading towards extinction especially with the way they operate by not putting customers into consideration.
They made this known recently during the 2nd Africa Retail Banking Roundtable Conference organised by Jeff & O’Brien Conferences and Events in Lagos and with the theme; “Rethinking Retail Banking Architecture & Infrastructure.
Mr. John Berry, an International Retail Banking Consultant, Faculty Lead and Advisor, Jeff & O’Brien, in his keynote address said that banks needs to rethink some areas they do business and the processes they demand of there customers internally.
Berry noted that customers are meant to be protected and not the other way round, adding that, if care is not taken, some retail banks are heading towards extinction especially with the way they operate by not putting customers into consideration.
“If we don’t change our regulations, we won’t have banking in the future, “he said.
Meanwhile, Mr. Ifie Sekibo, special guest and Managing Director, Heritage Bank Plc, who was represented by the Executive Director of the bank, Mr. Ola Olabinjo hinted that they are positioned to drive retail banking with business transformation strategy for its customers.
He pointed out there is a fundamental transition in digital and mobile technology that would reshape how product and services offering is purchased by customers.
Sekibo further posited that change has already taken place with the adoption of internet, mobile technology amongst other platforms to boosts retail banking services.
Mr. Usoro Usoro, head, Financial Inclusion Services, MTN Nigeria, noted the fast changing and disruptive world driven by technology is shifting customers behaviour leading to increased competition.
He, however, added that technology is the most significant as it enables and fuels the others at lower cost and greater access.
”Diverse industries are being transformed leading to grand convergence as at 2015 in the areas of banking, credit, Insurance, travel…and lot of others, “he said.
Moreover, Mr. Pascal Odibo, group country director, Jeff & O’Brien, in his opening remarks averred that so far, there has been remarkable progress towards financial inclusion in Africa in the last decade.
“This has been driven by a combination of policy reforms, increased competition, financial and technological innovation, “he said.
He maintained that policy changes and low-cost infrastructure built on mobile and digital technology has played a major role in advancing access to financial services by the under-banked.
“There is however still a lot of room for further development and huge profitable opportunities for current players and prospective investors who are willing to be innovative in embracing low-cost infrastructure for efficient service delivery, ”Odibo said
Jeff & O’Brien is an international professional knowledge development firm with key business interest in corporate training, business support and advisory, conferences and publications.
Also, Jeff & O’Brien Conferences and Events, an arm of Jeff & O’Brien International, is a thought leadership and agenda-setting forum targeted at senior professional executives addressing topical issues of global, regional, national and economic importance. Holding every quarter, the events attract leading minds on key subjects with a view to superintending superior thinking on critical global issues.
Federal High Court in Lagos has fixed July 1, 2025, for the commencement of trial in a money laundering case involving Cititrust Holdings PLC and three of its subsidiaries.
The subsidiaries are Cititrust Funding PLC, Cititrust Credit Limited and Cititrust Financial Services Limited,
The companies are facing an eight-count charge filed by a team of prosecutors from the Economic and Financial Crimes Commission (EFCC), comprising Anasoh Henry Onyekachi, Frankklin Ofoma, Abdulhamid Lamido Tukur, and A.A. Usman.
According to the charge, between 2021 and 2023, the companies, all incorporated in Nigeria, allegedly operated investment management services without a valid licence from the Central Bank of Nigeria (CBN).
This act contravenes Section 57 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and is punishable under Section 57(5) of the same legislation.
The prosecution also alleged that the companies conducted a Collective Investment Scheme without registering with the Securities and Exchange Commission (SEC), another violation of regulatory requirements.
In one of the counts, Cititrust Credit Limited is specifically accused of failing to report high-value financial transactions to the Nigerian Financial Intelligence Unit (NFIU).
These transactions include a N20 million transfer on January 7, 2021; a N200 million transfer on April 4, 2021; and a N200 million lodgement on January 29, 2021.
Additionally, both Cititrust Credit Limited and Cititrust Financial Services Limited are alleged to have made a single transfer and lodgement respectively of N42 million into their bank accounts on January 29, 2021, without proper disclosure to relevant authorities.
The alleged offences are in breach of Sections 11(1)(b) and 11(3) of the Money Laundering (Prohibition) Act 2022, as well as Section 54(1) of the Investment and Securities Act 2007, and are punishable under the respective laws.
The court is expected to begin full proceedings on July 1.
Ecobank Nigeria’s long-term issuer credit rating has been downgraded to ‘CCC-’ from CCC, with the outlook placed at negative by S&P Global Ratings. This is a resultant effect of the $150 million bond buyback offer on the bank’s $300 million Senior Unsecured Eurobond.
Part of the tender offer made by Ecobank includes an early tender premium of $12.50 for every $1,000 in principal (equivalent to 1.25%), with the anticipated settlement date set for July 8, 2025. The offer also requests bondholders’ consent to eliminate the capital adequacy covenant on the outstanding notes.
These actions also led S&P to downgrade the $300 million Eurobond from ‘CCC’ to ‘CCC-’. Although S&P notes that it does not consider the tender offer a distressed debt restructuring.
However, this assessment is at risk of changing if the bank does not receive the promised capital injection from the parent group, Ecobank Transnational Incorporated (ETI).
Following the naira devaluation, Ecobank was unable to meet the regulatory Capital Adequacy Ratio (CAR) requirement, as its CAR dropped to 7 per cent. This was below the 10 percent regulatory minimum. The breach of the CAR caused the bank to seek the consent of its bondholders to pause the capital adequacy notes on the Eurobond notes till September 2025.
Following this development, the bank received a $50 million prepayment on promissory notes from its parent company, ETI, along with early repayments on certain foreign currency loans. However, it has been insufficient in restoring the capital adequacy to regulatory levels.
According to S&P, the bank is expected to receive another $50 million capital injection from its parent group before August 2025. However, the ratings agency notes that if the bank is unable to receive this capital injection, it will inevitably default on its bonds. A situation that would cause a further downgrade to ‘CC’.
It was recommended that Ecobank Nigeria consider raising $150 million through additional Tier-1 instruments to strengthen its liquidity buffers. Additionally, the bank was advised to intensify efforts to recover its foreign currency-denominated loans.
Sofri, Powered by Links Microfinance Bank plans a massive rollout of Point of Sale, PoS terminals for merchants and agency banking in the third quarter of this year.
This is coming against the backdrop of the banks revamp of its digital platforms to support better customer experience.
Paul Adebayo, managing director, Sofri, said the bank is technology and purpose-driven, with focus on financial inclusion and sustainability. As well with the determination of making banking simpler, inclusive, and impactful.
He said that the revamped mobile app features, faster onboarding, cleaner interface, real-time alerts, enhanced security and seamless loan applications.
“Our corporate internet banking Launched for SMEs and institutional clients features, secure payments, transfers, account management and enhances business banking experience.
“Laying the groundwork for greater reliability, product innovation and operational efficiency is our new core banking infrastructure. This change enables us to scale faster and serve customers better.
“Our Terminal Management System (TMS) improves the performance, uptime, and remote monitoring of our POS terminals. This ensures merchants and field agents enjoy better stability, quicker settlements, and stronger support,” he added.
On sustainability impact, Adebayo, added that Sofri is embedding ESG principles into its lending and operational models — from offering green financing options, to supporting waste-to-wealth entrepreneurs, and making inclusive finance part of Nigeria’s circular economy.
Sofri is a trademark of Links Microfinance Limited (Links Mfb). Links Mfb is licensed and regulated by Central Bank of Nigeria (CBN) and deposits insured by the Nigeria Deposit Insurance Corporation (NDIC). Links Mfb is a member of DLM Capital Group, owners of DLM Asset Management as regulated by the Securities and Exchange Commission (SEC).
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