Again, we would like to take a deep plunge into the deep waters of Financial institutions in Nigeria and what they may likely offer to prospective customers. Believe me, this topic can never be boring.
Considering that many have felt disappointed by the failing financial system in the country and the recurring charges by some of these financial institutions with or without prior notice to their customers, it is pertinent to take a periscopic view into the available chances in this system.
Financial institutions in Nigeria are retail and commercial banks, internet banks, credit unions, savings, and loans associations, investment banks, investment companies, brokerage firms, insurance companies, and mortgage companies. Many have not accessed these internet banks, who do not believe that the presence of physical buildings or branches, say much about a brand or bank.
A name may not ring bell or most likely may not have been heard by many in the banking sector. SunTrust Bank Nigeria Limited (STBNL) is a Nigerian financial service provider, licensed as a commercial bank, by the Central Bank of Nigeria, the central bank and national banking regulator. Founded, February 1, 2009 by Muhammad Jibrin Barde, SunTrust Bank, prides itself as a privately owned commercial bank, inspired by the future. The Bank also says it is poised to create value for its customers by leveraging on its competencies and a team of highly motivated staff, while it focuses its lending activities on SME Finance, Retail/Consumer Banking, medium to large Corporate Finance and explores other specialised Development/infrastructure financing activities. Where does SunTrust fit into the banking sector by category? The Managing Director and Chief Executive Officer, Mrs. Halima Buba once explained: “We are part of the tectonic movement in banking, a financial technology-based bank with minimum branches. According to her, “Sun Trust is a regional financial technology-based bank with a capital requirement of N10 billion, now in excess of one billon, we are operating with minimum staff with branches in Lagos, Abuja and Port-Harcourt covering the South-South and South-west and Abuja. By our license, we are limited to operate physically. Our strategy is very clear, we don’t see us increasing our capital, and there is no need for us to have a big capital that cannot give returns. By implication, we will remain a regional bank for now and what that means is that we cannot physically be in the other regions; we will be everywhere because we are not limited by barriers or by physical location; technology is not limited physically and therefore whether you are in the South-East or in the North, we can easily service you.”
It is worthy of note that Mrs. Buba’s fresh appointment came on the eve of the year 2020, a time the Bank needs to consolidate on a solid foundation it has built in the past years. Her appointment as the Managing Director/C.E.O of SunTrust Bank was premised on her years of experience as a financial expert and a seasoned banker with over 20 years’ experience.
Through her contributions to the bank, it has worked tirelessly to develop & provide a broad range of unique financial services and products to consumers, small business, corporations, governments and institutions that will positively impact their business.
An indigene of Adamawa State and a Board member of Nigerian Sovereign Investment Authority, (NSIA), Buba believes that today the bank’s dream of remaining a key player in the banking sector has become a dream come true.
The question then is, what is the cutting edge for SunTrust? In a universe of over 180 million people, there are only 30 million of such people with bank accounts, leaving behind 150 million. The bank has decided to play with one-third of that number, that is an additional 50 million who can be persuaded to have bank accounts. That is the number that SunTrust is targeting and the Bank’s management has vowed to bring them into its fold through the concept of financial technology or electronic banking.
A former Deputy General Manager at one of the foremost Banks in Nigeria, the C.E.O opined that technology based banking has become a global phenomenon subscribed to by 90 percent of bank customers, leaving just 10 percent dependent on the old tradition of manual banking not only in Nigeria but worldwide. Any institution that thinks branch banking is at the core of a bank, is not ready to expand its customer base. Customers today execute 90 percent of their transactions electronically. This is where SunTrust had belonged from the onset.
Leveraging on the good precedence by her predecessors, who have established and stabilized SunTrust, a relatively young bank, Buba plans to build on the foundation they have laid to propel SunTrust to greater heights. Though there are no likely chances that physical branches would disappear, the end result of technology would be having scanty customers behind the counter. Although, nobody wants to deal exclusively with ‘robots’, but with constant education of customers on the science and art of electronic banking, banking will become real fun in the future. A key factor SunTrust Nigeria Ltd., a technology based bank has keyed into from the onset. This explains the reason why it has few physical branches across the country.
Sun Trust has been very clear on this from the onset, knowing that its business would be driven on technology. Through its quality service delivery, SunTrust has consolidated on its growth and its corporate reputation, by achieving a feat of staggering ninety percent of transactions by its customers today executed electronically.
SunTrust does not have a counter or teller, cashier cubicles, because the bank sees no need for it. The bank believes any financial institution that believes that physical branches are at the core of its brand is not prepared for the future. Customers in future would neither want to visit physical branches nor want to carry out a transaction over the counter either in cash or cheque. Most customers today would rather execute their transactions electronically, or if need be, withdraw cash at an ATM.
His words during an interview, “At the heart of our strategy therefore, we agreed that this bank would be known as a financial technology bank, we are going to drive and deliver banking services using technology, and this is the future of banking”.
“So our target market would continue to be the small and medium enterprises and the retail ones but more importantly we shall focus on them, on those that are in the South and those that are excluded from financial services”.
On the Bank’s unique selling point, SunTrust contends for any business to grow or develop. The Bank believes you need to have access to finance and the engine room to the growth of each and every economy is the small and medium enterprises. SunTrust Bank’s cutting edge is to grow the small and medium scale industry sector in Nigeria.
The CEO, Buba believes the bank is an institution that will clearly provide the funding and support of small and medium enterprises. This would propel the economic growth of this country, there is no doubt about it.
A Financial Expert with over 20 years experience, the C.E.O, Mrs. Buba is confident the Bank would have met its target of growing its revenue by One Billion Naira and N30 billion in five years. He projects a customer base of 10 million using other banking agents and network providers such as Airtel to get to those areas where SunTrust may be physically restricted to operate as a regional bank, to expand its customer base. The Metamorphosis of the SunTrust Brand has been hugely inspiring, from SunTrust Savings and Loans Ltd, later known as SunTrust Mortgage Bank and now SunTrust Bank. The successes of the bank have remained a debatable topic that has defied attainment of the high expectation of becoming the engine room or hub of positive change in the banking sector.
The name SunTrust, is appealing because it is a reminder that our daily chores begin with the morning and end at sunset; so as the sun is rising, you can be rest assured that you have an institution that you can go to, that would provide you with the necessary support and as the sun is setting you can trust that your savings are safe in that same institution; you can trust it as a partner.
Over the years, SunTrust Bank has strived to create the best outcomes for its clients and customers with financial ingenuity that leads to solutions that are simple, creative and responsible. With special focus on Personal Banking, provision of Loans, Mortgages, development of Small Businesses, Investing & Retirement, Wealth Management, Corporate & Commercial banking and management of Personal resources, SunTrust Bank has won the heart of many.
Olamide Adeniji is a Member of the Editorial Board of TheScript Newspapers
