FirstBank adapts through digital offerings and financial inclusion
By Jeph Ajobaju, Chief Copy Editor
FirstBank, though the oldest bank in Nigeria, keeps adapting to changing financial systems both to satisfy a customer base of 30 million and survive in black against competition with fellow FUGAZ and the onslaught of smart Challenger Banks.
FUGAZ is the acronym for Nigeria’s five biggest banks by market capitalisation – FBN Holdings, UBA, Guaranty Trust Bank, Access Bank, and Zenith Bank.
Conventional banking terrain is familiar to all the FUGAZ.
But FirstBank, speaking for itself, says it is rising above the fray ignited by smart new Challenger Banks that deploy cutting edge fintech for their operations and make huge profit with little use of physical buildings that pile up costs.
Challenger Banks
Banks face stiff competition as Challenger Banks such as Kuda Bank and V-Bank are more capitalised having attracted significant funding in recent months.
These banks offer zero fees as an attractive selling point to poach customers from big commercial banks who have long monetised their platforms.
Challenger Banks typically earn money from other sources such as providing bespoke services wrapped around savings and investments.
Rather than rely on digital revenues from fees and charges, they earn by engaging in the business of banking, lending depositors’ funds, and investing their free float.
There are also well funded pure fintechs, such as Flutterwave, Chipper Cash, and OPay that transfer funds at competitive fees to attract customers away from traditional banks.
Added to the challenge is the new approval by the Central Bank of Nigeria (CBN) for telecom majors MTN and Airtel to operate as Payment Service Banks (PSBs).
A PSB is not a full blown commercial bank but it eats into the functions, the customer base, and the profits of commercial banks because, among other roles defined by the CBN, a PSB
- Takes deposits from people
- Takes deposits from small businesses
- Provides payment services
- Provides remittance services
- Issues debit and prepaid cards
- Runs electronic wallets
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Standing the test of time
Being woven into the fabric of society for over 127 years means that FirstBank remains at the forefront of providing financial products and services to meet the needs of customers, the banks says in a document published by Nairametrics.
As Nigeria’s premier and most valuable banking brand, with over 30 million customer accounts, FirstBank provides a comprehensive range of retail and corporate financial services to its customers and the banking public.
The services extend to subsidiaries in FBN Bank in London and Paris (in Europe), Kinshasa, Accra, Banjul, Freetown, Dakar (in Africa), Representative Office in Beijing (in the Far East).
FirstBank says these locations have been critical to expanding its frontiers beyond the Nigerian financial landscape.
A customer relationship built on good corporate governance, strong liquidity, optimised risk management, and leadership makes FirstBank one of the most popular banks in Nigeria.
It has led the financing of private investment in infrastructure development in the economy by playing key roles in government’s privatisation and commercialisation schemes.
With its global reach, it provides prospective investors wishing to explore the vast business opportunities in Nigeria with the aid of an internationally competitive world-class brand and a credible financial partner.
Through the years, FirstBank has stood the test of time designing products and services that make banking fun, convenient and safe for its customers, irrespective of where they may be across the globe.
Digital channel offerings
FirstBank provides an array of digital financial services through various e-payment channels to link up segmented audiences with tailor-made financial solutions.
The channels include
- FirstMobile App
- FirstOnline
- USSD (*894#)
- FirstMonie wallet
- Firstmonie Agent Banking Network – a popular platform at the forefront of financial inclusion and gender diversity.
Firstmonie facilitates the mandate of the Central Bank of Nigeria (CBN) for banks to make financial products and services available nationwide.
The CBN adopted in 2012 the National Financial Inclusion Strategy (NFIS) which highlights regulatory barriers to financial inclusion and identifies four areas of focus:
- Agency banking
- Mobile banking/mobile payments
- Linkage models
- Client empowerment
Firstmonie for financial inclusion
FirstBank has more than 130,620 Firstmonie Agents spread across 772 of Nigeria’s 774 council areas for anyone to do banking transaction without visiting a bank.
It enables one to make a cash deposit, transfer money to any bank, and enjoy other banking services like bills payment and purchase of recharge card among others.
FirstBank processed in 2020 over 295 million transactions with a total value of N6.65 trillion and opened more than 196,000 accounts.
But FirstBank explains that it is not about numbers or competition with others or being the largest bank-led network in Africa.
It focuses on the impact Firstmonie Agent channel creates by integrating diversity and awareness while being the gateway to financial inclusion in areas with minimal or no banking service.
FirstBank’s financial inclusion drive has over the years impacted job creation, women and youth empowerment, and entrepreneurship development which are fundamental pillars of overall economic growth.
FirstBank’s SMEConnect also creates an environment for SMEs to build, grow, and scale. The platform is the bank’s value proposition to strengthen the capacity of SMEs to deliver business goals and contribute more to national development.
SMEConnect provides SMEs with access to the plethora of services offered by FirstBank. The portal helps SMEs access unique propositions and identify gaps that hinder business growth.
There are currently more than 4,225 registered businesses and 20,880 users on the platform.
FirstGem for women
FirstGem account meets the financial needs of women by offering services that empower them to do more and achieve more. FirstBank recognises that promoting female entrepreneurship and empowerment is crucial to a better society.
FirstGem targets a broad spectrum of women in professions and entreprises as well as market women to promote their business through an array of benefits.
Since the product launch in October 2016, FirstBank has implemented various activities to promote female empowerment, impact, and influence in the economy.
Pursuit of excellence
These initiatives ensure FirstBank remains stronger and younger at heart in pursuing excellence in all facets of banking, underpinned by its commitment to putting customers and other stakeholders first.
With its pedigree of facilitating resources for business sustainability and expansion, the impact of FirstBank through the past 127 years has been exemplary to growing Nigeria’s business landscape – beyond the banking industry.
