A shining example of Nigerian banking

Financial inclusion in Nigeria is low – approximately 40 per cent of the population are under-banked or completely unbanked, which means there is a huge untapped market, especially in rural areas, for banks looking to expand their reach. As modern developments in mobile banking mean a physical branch is no longer absolutely necessary for banks to deliver everyday banking services to customers, electronic banking has become one of the greatest innovations in modern banking services, widening access to banking products and adding a whole new level of convenience in personal banking. Diamond Bank has been at the forefront of developing online retail banking in Nigeria since its inception more than 20 years ago.

“From day one, Diamond Bank integrated all its branches into an online network, so all you needed to carry was your chequebook. Today, online banking is a given in the industry, but we pioneered the service in Nigeria. We have continued that trend of pioneering, innovation, and product development, and we pride ourselves on being the number one retail bank in the country,” says Dr Alex Otti, Group Managing Director and CEO of Diamond Ba

Diamond Bank ranks amongst the top 50 banks in Africa with around $3.85 billion in assets, 230 branches, some 300 ATMs and 1.8 million account holders. It was the first African bank to be listed on the Professional Securities Market of the London Stock Exchange following $500 million in Global Depository Receipts (GDRs) in January 2008.

A multiple award-winning financial institution with a presence in West Africa’s Francophone countries, Diamond Bank has always paid close attention to emerging technologies. It was the first to introduce debit and credit cards in Nigeria that also work anywhere in the world. Additionally, its ATMs, point-of-sale terminals, internet banking, mobile banking and cards themselves are integrated on the same platform, so clients only need one PIN. In May, it announced that the bank’s internet banking service, DiamondOnline, had gone live on CR2’s BankWorld internet platform. In partnership with Pagatech, the bank is also developing additional e-banking products and a mobile money system that effectively turns any mobile phone into an electronic wallet.

“These types of initiatives will make a difference in the rural population in Nigeria,” says Dr Otti. “We have an advantage in that we have been able to go into many of the areas where there are more small and medium-sized enterprises (SMEs). We are probably one of the few banks in Nigeria that provide good support for SMEs today. With a good business plan, we can award anyone an unsecured loan of up to 2 million naira ($12,320). Some people with very good ideas do not always have the financial security that banks usually ask for. We have a good story to tell in the retail banking area.”

In addition to its Retail Banking section, Diamond Bank’s three other units cater to other financial markets. The Corporate Banking department deals with large corporations and multinationals in sectors such as the oil and gas industry, power, maritime, manufacturing, aviation and telecoms. Its Business Banking section serves the needs of the middle-market customer and the bank’s Public Sector unit is set up to serve the banking needs of the federal government, its agencies and parastatals.

Internationally, Diamond Bank has partnered with major banks and institutions such as Deutsche Bank and Commerzbank. “German banks can find more profitable use for facilities they want to create by partnering with a local bank like ours. We have the local knowledge and can provide them with guarantees so they do not face any credit risks,” says Dr Otti. The CEO highlights various sectors where “the opportunities are huge” for German investors wanting to invest directly in Nigeria, particularly in agriculture, infrastructure and telecoms.

The bank is recognised by the IFC as the Best Micro and SME Bank in Nigeria and has worked with the IFC and World Bank to help boost the country’s small business sector. “The IFC gave us about $20 million for initiatives with SMEs and another $20 million for agriculture,” says Dr Otti. “Together with Shell we also put together a $30 million GroFin fund to support SMEs in the oil-producing communities.”

Dr Otti adds, “We have gone into uncharted territories and pioneered a technology-driven service. We have retooled our bank, re-analysed our strategies, redefined our brand essence, and geared up towards excelling even more than we have done over the past two decades. We have the right people with the right skills, the right technology and the right kind of customers. Currently, we have a product range that caters to every socioeconomic segment. With Diamond bank, there is something for everybody.”