One of Nigeria’s most knowledge-driven financial house, Zenith Bank International, celebrates silver jubilee amid customer eulogies. Correspondent, SAM NWOKORO, writes that its phenomenal success in the finance service sector is emblematic of the philosophy of its workaholic founder, Jim Ovia.
Surviving in a business environment where regulators have a waspish temperament is one factor investors dread. Many Nigerian firms, including service providers, had relocated due to the cliche: hostile business environment. And the Nigerian business scene is very competitive and tasking. Which was why not many financial institutions survived the first wave of Central Bank of Nigeria (CBN) consolidation exercise of 2004.
The apex bank had pegged the capital base at N50 billion, but later reduced to it N25 billion. Even at this, only the bravest chief executive officers (CEOs) were able to beat the Professor Chukwuma Soludo-led CBN deadline. One of the first five was Zenith Bank.
This, in a nutshell, shows the kind of human resources at Zenith Bank: passion, conscientious. The bank has, more than some older banks, built itself into the Nigerian consciousness. Anytime the story of modern banking system is written, Zenith Bank Plc would certainly be among the first. What makes it so is because of its relatively young age and the meteoric milestones.
Responsiveness
Zenith was among the premium category of banks that accomplished many innovations when the Soludo revolution was launched in 2005. The CBN boss was always citing Zenith as a reference point, as a model for other banks. And the examples were not few. Zenith was among the first banks that started using armoured bullion vans to ferry cash, instead of then prevailing rickety police van. It also attained Automated Teller Machine (ATM) deployment faster than any other bank when the technology was introduced in the country.
Zenith was among the top grade banks to set up Small and Medium Enterprises (SMEs) credit desks when the CBN issued the directive in 2006. It goes on record also that Zenith tops the chart in innovative product services. It was the second to introduce mobile and internet banking, as well as among the first new generation banks to attain the recommended nationwide presence in terms of branch network, even beating older banks to date with more than 500 branch network – a milestone that has enabled it transform into an octopus international financial service hotspot in Africa, with presence in Ghana, Sierra Leone, Gambia and South Africa. Obviously at 25 years, the bank still sets more target for itself when most thought it has reached its zenith.
Zenith of fame
In every respect, the milestone Zenith Bank International has recorded within a short time can be likened to the same passion that drives its founding chairman, Jim Ovia: patriotism, passion, development, foresight and community service. This characteristic permeates Ovia’s public life.
Ovia has become a role model for young graduates in business and finance disciplines. Engage any of them in conversation on the goings on in the financial world, and before the conversation ends, you would most possibly hear one say he aspires to be like Ovia. Those allusions are not just wishful sentiments. But it is genuinely a testimony that in the challenging environment of todays’ financial world, the founder of Zenith as a financial institution has shown that with the right frame of mind, achieving success in any enterprise is possible.
The story of the founding of Zenith itself buttresses this much. It has been one founded on meticulous planning with an eye on creating one of the most vibrant finance houses in Africa that can bankroll projects both at public and private sector levels. At best, given the liquidity of the bank and its strong investors’ fund, it is safe to say that Zenith Bank is a good complement to the continental finance house, the African Development Bank (AfDB).
A global rating and finance journal, Bloomberg, reported recently: “Zenith Bank was founded in May 1990 and commenced operation in July of the same year as a commercial bank. The bank became a limited company in July 17, 2004 and was listed on the Nigerian Stock Exchange (NSE) on October 21, 2004 following a successful initial public offer (IPO) floating. It currently has a shareholders base of about one million or more and is Nigeria’s biggest bank by tier one capital.
“In 2013, it listed $850 million worth of shares at $6.80 each on the London Stocks Exchange (LSE). It currently has over 500 branches and offices throughout Nigeria. In 2007, it was listed by the Financial Services Authority (FSA) of United Kingdom to establish Zenith Bank UK. Zenith Bank also has subsidiaries in Ghana, Sierra Leone, Gambia, South Africa and Peoples Republic of China. The bank plans to take the Zenith brand to other African countries as well as European and Asian markets.
“Zenith Bank blazed the trail in digital banking in Nigeria, scoring first in the deployment of ICT infrastructure to create innovative products that meet the needs of its customers. The bank is a leader in the deployment of various channels of banking technology, and the Zenith brand has become synonymous with the deployment of state-of-the art technology in banking.”
The journal added that the bank has grown astronomically to become one of the leading financial institutions in Africa. It said: “Zenith Bank currently ranks as the sixth biggest bank in the African continent, growing its shareholder fund of N20 million in 1990 to N509.25 billion as at year end 2013.”
The success story of Zenith
Of course, in the world of marketing services, the brand profile of the institution is almost synonymous with the brand personality of the service the institution renders. The vision of the founder, to a large extent, serves as the motivator of the institution’s management, drives its core organisational values and spurs it in pushing forward and opening up new frontiers. These have been the case with Zenith Bank and its founder, Ovia. If there is any entrepreneur in Nigeria that has elevated knowledge-applications in organisational management, both in the private and public domain, certainly Ovia merits accolade.
In a business environment where cutting corners and bursting investor trust is common, Zenith Bank and ‘Jim’ (by the way, that was how he directed every staff of Zenith Bank to address him when he was at the helms) have managed to stay above the fray. They have taught entrepreneurs to aspire to discover frontiers, tap into opportunities, strive to retain the trust of customers, industry regulators and stakeholders in order to succeed and fly.
Jim nurtured an institution with the same core values with which he built himself – integrity, hard work, foresight and courage – in embracing new thinking. Little wonder that Zenith Bank was one of the early finance houses to embrace the modern way of banking: deployment of cutting edge digital infrastructure almost as soon it was born. This led to customer shift of loyalty from the services of other banks to Zenith.
A peep into the profile of this Delta State-born patriot shows he understands the dynamics of African economics, and foresaw that Nigeria’s decision to deregulate her economies would unleash a flurry of venture capitalist and start-up enterprises. Hence he positioned himself and floated the bank with like minds, with him as the principal.
Jim, now in his 60s (he will be 65 on November 5), founded Zenith Bank in 1990 and grew it into one of the largest commercial banks in Africa, with a market capitalisation that sent competitors into a flurry of IPO listing to remain in business. The Officer of the Order of the Federal Republic (OFR) holds B.Sc. and M.A. degrees in Business Administration from the Southern University, Louisiana, United States of America (1977 and 1979) and is an alumnus of Harvard Business School Boston.
He joined IMB Merchant Bank as financial analyst in 1980 and moved to the management cadre in 1987. He headed the Corporate Finance Department of the Merchant Bank of Africa from 1987 to 1990. In 1997, he developed interest in computers when he worked as a part-time computer operator at Baton Rogues & Trust Company, a top rate business solution outfit in Louisiana, U.S.A.
Jim Ovia has been the chairman of the board and non-executive director since June 16, 2014. He serves as the Chairman of Quantum Luxury Properties Limited, and as Director of African Finance Corporation (AFC), a continental financial institution created not long ago to provide needed capital for upscale projects.
He served as Director of Zenith Bank Plc until July 31, 2010, and also as Director of Transnational Corporation (Transcorp) of Nigeria Plc, one of the mega private sector-funded portfolios formed after the first wave of privatisation in 2005. It was obviously born by the vision of likeminds of Ovia’s ilk who understand the need to promote African capitalism and make Africa’s wealth revolve within Africa.
A motivational speaker and avid information and communication technology (ICT) person, Jim understands the needs of his people. His courageous instinct to make ordinary Nigerians benefit from their own space has led him into many enterprises like building one of the largest petrochemical plants in Akwa Ibom State. He is an investor of value, and that is probably why Zenith Bank has always remained the investors’ first port of call in seeking where and how to invest in Nigeria. He also founded Visafone to broaden interconnectivity in Nigeria’s business transactions, just the same manner it has built more than 500 branch network within a short period of existence, to enhance the space for credit availability to serious business operators.
As Nigeria’s equivalent of Barclays Bank marks its 25 years of successful operation, Nigerians cannot but raise toasts with it and celebrate one of the most innovative enterprises of our time.