14 | The Lion King
Ask the Executive
ing within the zone; outward/inward
remittances within the zone; debit and
credit advice fees (e-advices); account
closure fees; ATM transactions charges
(balance inquiry and mini statement),
among others.
A similar measure was implemented in
the CEMAC region a few years ago.
These changes impact revenues. Also,
intense competition between banks
moderates pricing of banking products
and services. Just look at the Banker’s
Tariff, in any African country 20, 10
or even 5 years ago and you will be
surprised to see fundamental changes
from what exists now.
Changing banking landscape
Within the same period, Banks have
grown bigger and become more
profitable. As some products become
obsolete and some income lines shrink,
new products, services and income
lines also emerge. Our duty is to differ-
entiate the Bank, drive service delivery
and compete for, and grow business
volumes by serving an increasing
number of customers committedly and
quickly, through a growing number of
innovative products.
Revenues will follow, as customers are
delighted, and you get repeat business.
Furthermore, as our economies grow,
and as we support more diverse eco-
nomic sectors, the banking industry will
be positively impacted.
In summary, we will grow our market
share, and strive to lead in all our mar-
kets, in profitability, deposits, e-banking
and loans. We will also deepen our
overall product penetration, and pro-
vide excellent services. This is what we
are doing. Our operations in multiple
economies are also beneficial because
with diversified revenue streams, it is
unlikely that the Bank will be exposed to
regulatory-induced cost headwinds in
all countries, at the same time.
What are your predictions for the econ-
omies and the banking sector in Africa
in the future? What can we expect to
see more of?
My assessment is that African econ-
omies will continue to grow despite
the dynamics of the operating envi-
ronment. With a growing and educat-
ed population, and improving living
standards, what we see as challenges
in Africa are actually opportunities. For
instance, the Kenyan and Ugandan
economies have not yet been impact-
ed by oil discoveries, in Turkana and the
Lake Albert Basin respectively.
Untapped potential of Africa countries
What happens when Democratic Re-
public of Congo (DRC) finds stability on
a permanent basis, and builds the ca-
pacity, institutions and organisations to
leverage on its immense resources and
people? Tanzania and Mozambique
have huge unexploited gas reserves.
Guinea has almost 50% of the world’s
bauxite reserves. Cameroon has huge
untapped gold, iron ore, nickel reserves.
Ghana, Burkina Faso, Zambia, Congo
BZV, Gabon, Tchad, Cote d’ivoire,
Benin, Senegal, Liberia, Sierra Leone,
all have significant lodes of different
unexploited mineral resources.
The story is the same across the con-
tinent. Beyond solid minerals, is the
emergence and modernisation of other
sectors – agriculture, services, enter-
tainment, health, telecoms, power,
finance, among others and UBA is well
positioned to facilitate this economic
growth.
Future of the banking industry
I also see greater banking industry
consolidation in many countries. Fringe
banks that are unable to compete, and
meet customer needs are likely to be
consolidated, or atrophy. The African
banking space will be more competi-
tive as some Banks with current pres-
ence in say, 5-10 countries, will seek to
expand across regions, with similar and
competing product offerings. There will
also be more specialised banks cater-
ing to particular market segments and
customers.
Wealth Management, premium and pri-
vate banking services will also increase.
The possibility of other sector players
like telecoms having a structured swing
in financial intermediation in more
markets through the convergence of
money and mobile could play out. This
will compel enhanced collaboration
between both sectors. Migration to
e-Banking and alternative channels will
continue, though branch banking will
remain, especially in markets with bud-
ding banking sectors. Agency banking
will facilitate retail banking, beyond
Kenya and Nigeria.
Regulatory Environment
There will be greater cross-border
collaboration by Central Banks through
working frameworks and partnership
agreements. This will facilitate the
regulation of multi-country banking
groups, lead to improved disclosure
requirements, information sharing,
enhanced risk management, corporate
governance and overall, increased
stringency. The regulatory environment
will be stronger, as Central Banks strive
to stabilize the financial sector, and
prevent bank failures. This will lead to
higher regulatory costs for Banks
Increased economic integration
Economic Integration through regional
economic communities like ECOWAS,
CEMAC, EAC,SADC, COMESA, will
accelerate the creation of integrative
economic mechanisms and institutions
to ease the movement of people,
goods and capital.
This is already happening. For instance,
EAC countries have agreed to har-
monise their tax regimes, like VAT from
2015, in a single customs territory. Also,
Kenya, Uganda, and Rwanda have
introduced a single multi-nation tourist
visa system. The CEMAC Passport, for
Central Africa, has also been launched.
The efforts by WAMZ, to achieve a sin-
gle currency in Nigeria, Ghana, Liberia,
Sierra Leone, Gambia and Guinea, and
a unified payment system will contin-
ue. I expect an acceleration of these
processes across regional economic
blocs in Africa. As countries grasp the
benefits of integration, larger markets,
and shared infrastructure, they will do
more, while retaining vestiges of total
sovereignty.
Financial Inclusion
Aside from Nigeria, Kenya, Ghana,
Uganda, Mozambique, and Gabon,
banking penetration is less than 20% in
most of our countries of operation. With
the preponderance of electronic bank-
ing, social media banking, telecoms,
and widespread use of technology,
and through initiatives by governments
and Banks, financial inclusion will in-
crease exponentially, as entry barriers
are eliminated, and as more house-
holds join the financial ecosystem. This is
good for the society and also good for
the banking sector.
Please tell us about your early life
My early formative years were in Jos,
Plateau State. I still retain vivid and
beautiful memories of Jos as a thriving
and modern city. It was a melting pot
for Nigerians from different walks of life,
and from all parts of the country, and
was the nation’s tourism capital. The
State was the hub of mining activities, a
good place to be.
Tell us about your family and work-life
balance
Work and life hardly balances, because
of the demands of modern banking,
but we must try. I am married with three
kids, and I appreciate their support and
understanding always.
