By Felix Onajite
Since the financial crisis that
enveloped the global market a decade ago, the profitability and
reputation of banks has been under tremendous pressure worldwide,
Nigeria inclusive. Whilst the banking industry is now regaining its
health, the entrant of fintechs and neo-banks in the industry is posing a
new threat. This digital disruption is changing the traditional way
through which customers obtain financial services,
hence putting more pressure on banks’ profitability.
However, a bank in Nigeria, Keystone
Bank Ltd, is challenging the status quo by making transformation and
profitability appear like a mere walk over as revealed in its
achievements within a short time span. From the perspective of the
results on ground, it appears to be a great time for Keystone Bank. In
just one year of AMCON’s divestment, the bank has changed its narrative
from “one of those banks” to a financial institution to be reckoned with
and as a resultis experiencing an influx of business minded customers.
Keystone Bank’s ambitious and holistic
transformations have taken industry watchers by surprise, and
the industry itself by storm. Besides therevamping of its branches
across the nation and bolstering its workforce, it has invested
substantially in technology and developed fully integrated servicemodels
that enable its customers enjoy banking services through a wide range
of channels.
The bank’s journey to reckoning had been
long and winding, which necessitated a takeover by the Asset Management
Company of Nigeria (AMCON) in 2011.
However, its acquisition by Sigma Golf –
Riverbank consortium seemed to trigger a turnaround as it precipitated a
change in the management team to the one that holds the magic wand for
the positive outlook it has been experiencing to date
On taking over, the new management
team led by its Group Managing Director/CEO Mr. Obeahon
Ohiwerei drew up a holistic and integrated approach to business
modernization which elevated the bank to deliver
a superior customer-centric experience. The impact of this change
reflected positive results in its Q1 report card, which, from all
indications, is a restoration of customers’ trust in its system.
The bank for the half-year ended June
30th, 2018 recorded a profit before tax of N5.83bn, compared to a loss
of N6.78bn over the same period in 2017. Deposit grew by 51%, from
N206bn to N312bn between June 2017 and June 2018
From evolving technologies to changing
customer expectations to new regulatory demands – it has never been more
important for banks to come up with the right strategies for digital
transformation and innovation; the Ohiwerei team nonetheless made this a
reality at Keystone Bank. This entailed initiating partnership
processes with foremost technology-enabled concerns to drive its digital
revolution.
Its partnership with CeLD Innovations
Limited to launch a ground-breaking loyalty reward initiative which
involves the gifting of ‘CashToken’, is one of such moves.
This innovative gift commodity, Cash Token, which was formally launched
in Lagos on Thursday April 19, 2018 at a conference tagged “500 Top CEOs
Conference – Unleashing – The Age of Hyper Consumer Centricity, is an
electronic reward and celebratory gift commodity which costs only N30.
The initiative, according to CeLD,
creates a chance for every customer in Nigeria to win life-changing cash
rewards every Friday night on the National CashTokendraws which
is monitored by Alexander Forbes and audited by Deloitte.
This initiative is designed to optimize customer loyalty investment for
business, celebratory gift value optimization and public emotional
equity for government.
The bank has also launched its revamped
mobile banking application upgraded with new and exciting user-friendly
features for a more convenient banking experience. Customers can now
enjoy many benefits & access self-service options, such as, easy
account opening, convenient self- booking and liquidation of fixed
deposits, an expanded list of bill-payment options and easy activation
of standing instructions & recurrent future payments.
Other notable features of the mobile App
are, a “Switch Card ON/OFF option” which allows users to disable their
cards temporarily if missing & re-enable at the click of a button,
the “Hide Balance Feature” safeguards against third-party viewing and
the “Meet Your Relationship Manager Option” allows users to call or
email their account officers right within the app.
In addition, the Bank was the first in
the sector to introduce the Chat-bot feature called OXYGEN which enables
banking on Telegram and Facebook. It guides users through a whole range
of desired transactions step-by-step.
Another first from the Bank is the Zero
Data Bankingfeature that enable customers transact on their phones
without data. Keystone Bank has remained the only Bank with this feature
on its Banking App.
And for the first time in its
operations, Keystone Bank also introduced a new SMART number for
customer support, this eliminates the need for customers to remember
multiple numbers while removing the uncertainty as to which of the lines
are actively engaged.
These and many other
moves leveraging technology and building a culture of innovation is fast
repositioning the bank as a new whiz kid on the banking block,
which, according to its group managing
director, Mr. Obeahon Ohiwerei is a proof of the hard work and
resilience of the board, management and staff of the bank.
Today, Keystone Bank’s branches are fast
becoming a hub for transactional activities witnessing a huge footfall
of customers trooping in to carry out transactions, open bank accounts
and experience the innovative trends that the bank has introduced to its
business. This overall experience has also been boosted by
the enhancement of staff morale which inherently drives the commitment
to serve their customers better.
From the look of unfolding events at
Keystone Bank, it’s clear to see that, it’s just a matter of time before
the bank starts operating in the first tier again.
– Felix Onajite, a financial analyst writes from Lagos, Nigeria.
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