Stanbic IBTC Holdings PLC, a member of Standard Bank Group, has reaffirmed its exemplary role in promoting the tenets of gender balance in the country. The leading end-to-end financial solutions provider has emerged top of the list of Nigerian banks with the highest female representation on its board of directors.

According to the Q1 2020 unaudited report on the Nigerian Stock Exchange (NSE), Stanbic IBTC Holdings PLC’s board of directors consists of 10 members. Among the 10 members are four female Non-Executive Directors, which represents 40% of the members. This is currently the highest when compared to other banks in Nigeria.

The four female Non-Executive Directors are Ifeoma Esiri, Ngozi Edozien, Nkemdilim Cay Uwaje, and Salamatu Suleiman. The board is led by Basil Omiyi, a Non-Executive Chairman.

Yinka Sanni, Chief Executive, Stanbic IBTC Holdings PLC, described the feat as a confirmation of the organisation’s commitment to continue to lead the advocacy and amplification of gender balance at every level in the banking sector, and indeed the country at large.

He said: “It is underpinned by our core values as an organisation to have gender balance. Apart from our board composition, we currently have about 43% females in our workforce. This is because we recognize that gender balanceis vital to achieving sustainable development. It is our collective responsibility to build a world devoid of a gender gap, if we must make remarkable progress.”

He reiterated that Stanbic IBTC has been consistent in building gender diversity management. “In 2016, three out of the seven members of our board of directors were females. That is about 43%. To us at Stanbic IBTC, gender balance is a human aspiration and our decisions to give opportunities are always devoid of gender-related stereotypes.,” he added.

Sanni noted that the organization will not relent in its efforts to create healthy communities and accessible platforms, where there are no discrepancies in status, opportunities, and attitudes between people of different genders.

Business Highlights (Q1(2020)

• Recorded significant increases in customer adoption rates on our digital/online channels across our businesses. Adoption rates are expected to accelerate as COVID-19 induced lockdowns changes consumer behavior.
• The number and value of transactions grew by 8% and 15% to 4m and $6.1bn, respectively, on Ecobank
• Omni+, Corporate and Investment Bank’s corporate clients’ online banking platform in the first quarter of 2020.
• OmniLite, Commercial Bank’s online banking platform designed specifically to meet the unique financial needs of SMEs increased number of transactions by 40,000 to 126,000, which amounted to $435m.
• Ecobank Pay, our payments platform saw a 61% increase in merchant acquisition numbers to 195,000 merchants.
• Transaction numbers and value on Ecobank Mobile increased 72% and 32% to 9m and $613m, respectively.
• Registered customers increased by 3,000 to 9,000 year-on-year on our Africa RapidTransfer App, which facilitates low-cost money transfer across 33 African countries.
• The number of XpressPoints (our physical agency network) grew by approximately 4,000 agents to 43,700, with the value of transactions reaching $445m.

Three months ended 31 March 2020 – Earnings Results

• PBT of $90m, down 12% on a reported basis, but up 27% in constant currency, driven by positive operating leverage
• Operating income (net revenue) of $393m, up 1% on a reported basis and 14% in constant currency
• Operating expenses of $259m, up 1% on a reported basis and 6% in constant currency
• Pre-impairment profit of $133m, up 2% on a reported basis and 34% in constant currency, on positive operating leverage
• Customer deposits of $16,103m, up 6% on a reported basis and 11% in constant currency
• Loans and advances to customers (net) of $8,788m, up 2% on a reported basis and 7% in constant currency

Ade Ayeyemi, Group CEO said: “Quarter 1, 2020 was the beginning of an unprecedented, uncharted and disturbing period for businesses, governments and individuals globally, owing to the rapid spread of the coronavirus pandemic. For us, as a bank, our focus is on making sure that we can meet the needs of our customers despite the pandemic, while also ensuring their wellbeing and safety as well as those of our employees.

All our countries have successfully activated our business continuity plan in line with the needs of each local environment. Through our investment in technology over the years, working from home has been seamless and indeed a pretext to a possible new normal post COVID-19.”

“As the leading pan-African bank, Ecobank embraced the call to duty with a sense of urgency. With our knowledge of Africa and its intricacies in the fight against the spread of COVID-19, we have contributed about $3 million in the form of cash, healthcare equipment and supplies, in addition to mounting sustained and robust awareness campaigns, while we are also using our digital banking platforms to provide money to some of the most vulnerable members in our communities.”

In recognition of the effects of the pandemic on a significant sector of African businesses, MSMEs, we are further co-leading, with the African Union-NEPAD, and are actively committed to an initiative to support MSMEs with technical knowledge, mentoring, knowledge sharing and financial support, thus playing a vital role in helping their businesses survive the pandemic.

“For the safety of our customers, we continue to adhere strictly to guidance from the WHO, governments, and health agencies in operating our physical locations, where they have to remain open. We have made it safer to visit our physical locations by providing temperature checks, crowd control, hand sanitisers and social distancing, among other measures.

Our ATMs and call centres remain open 24/7, and the full range of our banking services are available via our digital platforms. Ecobank Mobile and Ecobank Online are available to our consumer customers, and Ecobank Omni Lite and Ecobank Omni meet the needs of SMEs and large businesses. To further help alleviate the adverse impact of the pandemic on our customers, we have waived some of the fees on our digital channels and we are closely monitoring events to anticipate situations that may require our support to customers as circumstances evolve,” Ayeyemi added.

“That said, our quarterly performance was resilient, again reflecting the strength of our diversified business model. We delivered $90 million in pre-tax profits, an increase of 27% if adjusted for currency translation effects, and a return on tangible shareholders’ equity of 17.1%. We are managing impairment losses prudently, and as a result, our cost-of-risk increased to 1.5%, versus 0.5% in the prior-year quarter.”

By Elvis Eromosele

Nigerians love cash. Despite the best efforts of the Central Bank of Nigeria (CBN), the bulk of transactions in Nigeria are still cash-driven. It is not surprising. Cash embodies power, it breeds a sense of security and many swear it has aphrodisiac properties.

It is all too convenient to talk of electronic payment but when push comes to shove – cash is king. Ask any businessman.

Of course, the slow adoption of electronic payment has been blamed on a lot of things. Experts talk of poor awareness of digital and e-payment solutions, lack of trust, widespread illiteracy, and the largely mediocre banking culture.

While talks of financial inclusion have become rampant in recent years, progress has noticeably been slow. When the Nigerian government launched the National Financial Inclusion Strategy in 2012, objective was to reduce the financially excluded to 20 percent by 2020.

Today, the country is still a long way off the set objective. Studies show that only about one in five adults and 38 percent of households’ report having a formal bank account.

According to the World Bank, “Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.”

The understanding is that access to financial products and services may well be the first step towards broader financial inclusion. For most people, to be able to save money and send and receive payment, would mark unprecedented progress.

Technology has proven a real ally in this effort. Today, in the quest to boost financial inclusion technology is being employed in different ways and across a myriad of platforms.

This COVID-19 driven lockdown provided me an opportunity to assess what is working. From a precursory study, agent banking is emerging an unlikely winner.

“Agent banking,” as explained by the CBN, “is the provision of financial services to customers by a third party (agent) on behalf of a licensed deposit taking financial institution and/or mobile money operator (principal).”

In practice, agent banking is essentially a type of branchless banking. It, more than anything else, demonstrates that with the most basic technology, any merchant shop can be transformed into a mini-bank (I do not know if mini-bank is a real word). Today, agent banking is proving an effective way to improve financial inclusion.

It would appear that the lockdown has reinforced the position of agent banking as an important and maybe even indispensable part of the financial service ecosystem.

It is no surprise that agents are becoming the channel of choice for many; they are close, convenient and cost-effective.

The number one proof of the growing acceptance of the agent banking model, particularly during the lockdown is the queue of people waiting to either collect cash or transfer fund.

The biggest beneficiaries appear to be agents with stores that sell provisions and packed drinks. They always have cash to transfer. But when people need large sums, the filling stations are the undisputed champions. I’ve seen people collect as much as N100, 000 at one time from one filling station.

So, in the lockdown, when one would expect e-payment to gain some foothold, cash still reigns. I don’t have the figures, perhaps when all this is over, the CBN would make them available. For now, as far as it is obvious from close observation, the bulk of transactions are still cash-based.

Tomorrow, e-payment may gain ground but today cash is king.

For those who may doubt, here is a simple test:

Consider the number of transactions that you have done during this period, how many of them were cash and how many e-payment? I came up with 95 to 5 in favour of cash.

But it is not all bad. The massive volume of cash transactions shows clearly that digital and e-payment still have a long way to go in this clime. They are not yet ubiquitous or widely accepted. This rather than discourage should help the players in the sector see the gap and opportunities.

So, now the thinking should be how to fill this identified gap, take advantage of the opportunities and possibly harness the potential. Post COVID-19, players in the digital and e-payment space definitely need to up their game.

COVID-19 may not reinvent payment in Nigeria, but it would expose the failings, reveal the gaps and provide actionable insights for the discerning. Yes, it would shape the operations and focus of players in the ecosystem. COVID-19 would have a say on the future of payment in Nigeria and globally.

For now, cash is still king.

Elvis Eromosele, a Corporate Communication professional and public affairs analyst lives in Lagos.

Dr. Sylvanus Jatto

Amidst the outbreak of the coronavirus (Covid-19) in the country,Stanbic IBTC Holdings PLC, a member of the Standard Bank Group has urged Nigerians to maintain a strong mental attitude, which is a major prerequisite for overcoming the global pandemic.

In a live video podcast on YouTube sponsored by Stanbic IBTC, the “Blue Talk Show”, Dr Sylvanus Jatto, a medical expert with the firm, said the lockdown offers us as a nation, the opportunity to reevaluate and restructure our daily routines, goals, and expectations.

To relieve the psychological and mental concerns associated with the lockdown, he advised Nigerians to deliberately create a routine that enables them to go through what they have been doing before the lockdown and this routine could be spaced, to allow mental and physical relaxation. As a pre-requisite for good mental health, he also advised Nigerians to exercise while staying at home and maintain a positive mindset, because this pandemic is but for a while.

Dr. Jatto further advised Nigerians to maintain a strong connection with their loved ones, even employers should consistently maintain communication with their employees, reassuring them of their commitment to their well-being.

He further advised citizens to limit the amount of information being consumed especially from the social media space, as this information could affect them negatively.

On the economic impact of the Covid-19 pandemic, Dr. Jatto cautioned Nigerians to be financially prudent. “During this period, Nigerians must be financially frugal in their spending, with much emphasis on priority rather than impulsive spending, to build resilience in this tough time,” he said.

On the home-front, he urged parents and guardians to relieve anxiety in the home by avoiding domestic violence and chaos. He tasked parents and custodians to spend quality time with their children and wards, teaching them all they need to know about the pandemic and instilling family values in them.

On measures taken as a corporate organisation to protect the lives of its staff, Dr. Jatto said:

“Stanbic IBTC has a mobile application which connects all staff of the organisation. Once logged in with the necessary details, the application provides regular updates on current happenings within the organisation and information on the coronavirus pandemic. We also have an employee assistance programme which provides employees a “Safe Space” where all staff can talk to a professional therapist without being judged and/or criticized. A toll-free number which offers 24-hour counselling, for staff to reach out to concerning medical assistance or advice.”

Jatto encouraged Nigerians to continue to adhere to the approved safety guidelines, while commending the efforts of health workers who have committed their time, knowledge and lives to ensuring a Covid-19-free-Nigeria.

“Nigerians will never forget their sacrifice,” he said.

Ecobank Nigeria has donated food items to several state governments across the country as contribution to various initiatives aimed at cushioning the effect of the current lockdown on citizens. These palliatives are targeted at the most vulnerable members of the society who have been the hardest hit economically as a result of the current crises.
Speaking in Lagos, Executive Director Commercial Banking, Ecobank Nigeria, Carol Oyedeji said this action would also go a long way in supporting members of the community who earn a daily wage and may not have the opportunity of working under the present environment.

She noted that the donations are part of the bank’s Corporate Social Responsibility (CSR) and focused on providing support as best as possibleShe remarked that “as a bank we give strong priority to people’s welfare. We are determined to assist ordinary Nigerians during the current difficulties and this is one of the ways we are achieving this. We are also offering concessions to our SME Lending customers at this time given the strain on their cashflows and creating ease for the general public to transact digitally while at home”.
Ecobank Group has so far contributed over US$3 million to the fight against COVID-19 across its footprint in Africa in line with the Bank’s commitment to the Region. The Institution is supporting governments, the World Health Organisation (WHO) and partnering with private sector operators to alleviate the effect of the pandemic on citizens.

These have been in the form of cash, healthcare equipment, donation of supplies, awareness campaigns while also using digital platform to provide funds to beneficiaries of various funds being distributed. The Bank is particularly mindful of the needs of its communities and remains committed to providing the appropriate support required.

Remittances to Sub-Saharan Africa registered a small decline of 0.5 percent to $48 billion in 2019. Due to the COVID-19 crisis, remittance flows to the region are expected to decline by 23.1 percent to reach $37 billion in 2020, while a recovery of 4 percent is expected in 2021.

The anticipated decline can be attributed to a combination of factors driven by the coronavirus outbreak in key destinations where African migrants reside including in the EU area, the United States, the Middle East, and China.

These large economies host a large share of Sub-Saharan African migrants and combined, are a source of close to a quarter of total remittances sent to the region. In addition to the pandemic’s impact, many countries in the Eastern Africa region are experiencing a severe outbreak of desert locusts attacking crops and threatening the food supply for people in the region.

Remittance costs: Sending $200 remittances to the region cost 8.9 percent on average in the first quarter of 2020, a modest decrease compared with the average cost of 9.25 percent a year before. The most expensive corridors are observed mainly in the Southern African region, with costs as high as 20 percent. At the other end of the spectrum, the less expensive corridors had average costs of less than 3.6 percent.

Global remittances are projected to decline sharply by about 20 percent in 2020 due to the economic crisis induced by the COVID-19 pandemic and shutdown. The projected fall, which would be the sharpest decline in recent history, is largely due to a fall in the wages and employment of migrant workers, who tend to be more vulnerable to loss of employment and wages during an economic crisis in a host country. Remittances to low and middle-income countries (LMICs) are projected to fall by 19.7 percent to $445 billion, representing a loss of a crucial financing lifeline for many vulnerable households.

Studies show that remittances alleviate poverty in lower- and middle-income countries, improve nutritional outcomes, are associated with higher spending on education, and reduce child labor in disadvantaged households.

A fall in remittances affect families’ ability to spend on these areas as more of their finances will be directed to solve food shortages and immediate livelihoods needs.

“Remittances are a vital source of income for developing countries. The ongoing economic recession caused by COVID-19 is taking a severe toll on the ability to send money home and makes it all the more vital that we shorten the time to recovery for advanced economies,” said World Bank Group President David Malpass. “Remittances help families afford food, healthcare, and basic needs. As the World Bank Group implements fast, broad action to support countries, we are working to keep remittance channels open and safeguard the poorest communities’ access to these most basic needs.”