Stanbic IBTC cancels Deposit Slips for Cheque, Cash Lodgments

Stanbic IBTC Bank Plc has deployed some changes on its Cash Deposit Process and Cheque Truncation System, CTS, portal, which includes the elimination of cash and cheque deposit slips in branches. Among other key features of the new offering are proper customer data collection, reduction in the presentation of stale and post-dated cheques and activation of cheque deposit receipt functionality on the CTS portal.

However, deposits for accounts such as electricity bills, Federal Inland Revenue Service, Customs, and Lagos Inland Revenue Service, among others, still maintain the use of customized deposit slips. The initiative, tagged “Speak Your Transactions,” became operational for cash deposits on August 13, 2018 and August 20, 2018 for cheque deposits. The purpose of the initiative is to further embed the Stanbic IBTC Group’s “Go-Green” culture as it continues on the paperless journey and empower its customers to speak their transactions.

Demola Sogunle, chief executive officer, Stanbic IBTC Bank Plc, said the new initiative is in fulfillment of the bank’s commitment to improving customer experience, work efficiency, data quality and ensure all improvement opportunities are maximised to the customers’ benefit. “This is another initiative that speaks to our determination to consistently reinvigorate our systems and procedures in order to provide bespoke financial solutions to our clients.

“As a service business, we recognise that customer satisfaction is a cardinal operating principle and there is no better way of showcasing this than empowering our customers and enhancing their banking experience,” he said.

According to Sogunle, as a member of the Standard Bank Group, Africa’s largest bank by assets, Stanbic IBTC will continue to leverage on the 155-year experience, expertise and strong financial clout of the mother brand to deliver superior sustainable shareholder value by meeting the needs of its clientele. “Our ultimate goal is to continue to render best-in-class service to our customers and also play a leading role in driving their growth.

“Regarding cash deposits, the process entails some simple steps in which the bank teller receives the customer’s account name and number, and subsequently validates the details provided by the customer and then receives cash to be lodged in. Thereafter, the teller processes the request and prints duplicate receipts that are handed over to the customer. After endorsement of both copies by the customer, the teller appends his or her signature and stamps the receipts; then hands over a copy to the customer while the duplicate is kept as evidence of processed transaction.

“For outward clearing cheques, only one receipt is printed, stamped and given to the customer. At the point of truncating the cheque on CTS, the teller is required to input the cheque issuance date and present the posted cheque on CTS to the authorizer and prints a copy for the customer.”

– Sept. 14, 2018 @ 14:29 GMT |

What to do if your loan application is denied

IF your loan application is denied, you might not know where to turn or what to do next. You can start by finding out why you were denied; how long you need to wait before applying again; and what steps you can take, right now and in the future, to prevent it from happening again, according to

This applies to any type of loan you might apply for, including home and auto loans, credit cards, personal loans, and business loans. Whenever there is a disconnect between what you thought was possible and what your lender agrees to, it is worth narrowing that gap.

Analyse your situation

Find out why your loan application was not approved. Lenders are generally glad to give you an explanation and they are required to provide certain disclosures, so there is no reason not to find out.

The most common reasons for being denied credit are:

Issues with your credit or a low credit score.

Not enough income

Bad (or no) credit: Lenders look at your borrowing history, usually in the form of your credit scores, when you apply for a loan. They want to see a solid history of borrowing and repaying loans. However, you might not have borrowed much, or you might have experienced some challenges and actually defaulted on loans in the past.

If credit was the culprit, your lender is required to provide you with a notice of adverse action, explaining that your credit history was used against you, providing a reason such as defaulted loans or too many inquiries, and explaining certain rights that you have. The notice should explain how you can view your credit reports, often for free. The good news is that you can improve your credit.

Not enough income: Lenders want to see that you are able to make the minimum monthly payments before they approve your loan. With some loans, such as home loans, lenders are required by law to calculate your ability to repay.

Most lenders use a debt to income ratio to see if you can handle the payments upon approval of your loan. They compare how much you earn each month to how much you spend on debt repayment, assuming minimum payments. If it does not look like you will be able to afford the new debt, they reject your application.

Other issues: Occasionally you will be declined for other reasons. For example, sometimes mortgage loans don’t go through because an appraisal did not come in high enough to justify the size of the loan.

When applying for small business loans, lenders often look at the business owner’s personal credit. Unless business owners pledge personal assets as collateral or the business is well-established, the chances of getting approved are slim.

Before re-applying

Save yourself some time and frustration before you apply for your next loan. Look at yourself the same way lenders do, and check for any red flags in your credit. See if you truly have sufficient income to repay the loan.

Examine your credit report, and ask lenders if they anticipate any problems. They will gladly explain what matters and what does not, and how long you need to wait after certain events like foreclosure. It is also worth asking what the lender wants to see for your debt to income ratios.

If you use a small bank, you might be able to speak with a lender directly to learn everything you need and get prepared before you fill out another application.

You can also work through the following steps to clear up your finances and become a better loan candidate.

Quick clean-ups

Fix errors: If you have errors in your credit report, fix them. You should not be held responsible for computer errors or somebody else’s actions. You have the right to have mistakes removed. With big purchases like a home purchase, you can get errors fixed and your credit score updated within a few days using rapid rescoring.

Pay off other debts: Your other loans could be part of the problem. Lenders look at how much you spend on debt repayment each month, so reducing that expense makes you look better as a borrower.

Immediate strategies

Down payment: A larger down payment for a home or car might help you get approved.  You will end up borrowing less, which means your monthly payments will be lower. Plus, lenders have less at risk with a lower loan to value ratio, so they might be willing to approve a loan even without perfect credit.

Use collateral: If you are applying for a personal or business loan, collateral might help you get approved.  Offer to pledge something of value to help secure the loan. Just be aware of the risks: you could lose your home in foreclosure or your vehicle could be repossessed if you fail to make payments. Only take risks that make sense. It is not worth using a home equity loan to pay for a vacation or luxury car.

Get a co-signer: Your income and/or credit were not sufficient to get approved, but you might have better odds if you can add somebody else’s income and credit to the application, assuming they have good credit and decent income. A co-signer applies with you, and that person will be responsible for repaying the loan. If you fail to repay, the lender will go after both you and your co-signer, and her credit will suffer, so only use a co-signer who is willing and able to understand that risk.

Apply somewhere else: You have been denied, but that is just one lender’s opinion. It is valuable information, and you should look at your credit and income, but a different lender might approve your loan. You don’t have to wait before applying again after a rejection; you just have to go somewhere else.

Long-term strategies

Unless getting denied was a fluke, you will benefit from making some changes so that it is easier to borrow. The following steps will keep your finances healthy in other ways as well.

First Bank introduces FirstEdu for Schools

The First Bank of Nigeria has introduced a service called ‘FirstEdu Educational Solution’, specifically designed to support schools in need of improvement and growth in meeting their medium and long-term goals. A statement from the bank said the FirstEdu product comprised FirstEdu portal and FirstEdu loan.

“FirstEdu loan is targeted at private nursery and primary, secondary and A-levels schools. The product offers opportunity for private schools to access flexible funding to meet urgent cash flow needs, replace old furniture and equipment, as well as refurbish dilapidated buildings and classroom blocks.

“With this product, school owners/proprietors can stay ahead of competition in providing educational services and support to the target population by maintaining acceptable standard infrastructure at all times.”

It added that the product enables customers to access up to N20 million facility with no tangible collateral, apart from having school fees account with the bank. This is said to reduce the cost of borrowing to the customer and eliminates the challenges posed by the provision of additional demanding collaterals.

“On the other hand, FirstEdu portal is a robust web-based enterprise portal that enables educational institutions (private nursery and primary, secondary, A-level schools and tertiary institutions) manage academic, administrative, professional, logistics and payment challenges. The basis for its robustness is to take the stress of logistics and payment challenges off schools as they focus on meeting the year-long and medium-term objectives of their school(s).”

– Sept. 7, 2018 @ 12:47 GMT

Sterling Bank partners African Ventures

The Sterling Bank Plc has announced plan to partner with 500 indigenously promoted African enterprises with a view to make 50 of them globally competitive in the next five years. Shina Atilola, group head, Strategy and Innovation, Sterling Bank, said Africa needs leadership in every sector of the economy and not only in government,

Atilola, who disclosed this while addressing participants at the African Ventures Programme hosted by the bank in Lagos, recently, explained that the Africa Venture Programme is an annual pan-African leadership event that brings together exceptional emerging leaders from government, businesses and non-profits across Africa.

In a statement, Atilola added that the programme enables the transfer of knowledge, know-how and inspiration across generations and attracts some of the most inspiring leaders in the world today as participants. “It creates a new generation of African leaders who have the cultural intelligence to work fluidly and flexibly across the continent, who have the analytical and creative skills to use diversity to spark innovation, and who have extraordinarily broad African networks.

“We need leaders that can see wider and deeper than others can see. We need leaders that are willing to take the risk. We need leaders that are willing to leave their comfort zones. Leadership is about service, not an entitlement. Leadership is about what you are willing to give and not what you are expecting to receive.

“Leadership is about denying yourself just because you want to achieve a greater purpose. It is not about solving your problems, but it is about solving other people’s problems,” he said.

Atilola said leadership determines the values of the society and if one set an effective tone for culture, man will continue to make progress and part of the challenge man has is how leaders imbibe culture.

– Sept. 7, 2018 @ 12:45 GMT

EcoBank Nigeria’s New MD explains His Mandate to Clients

PATRICK Akin Akinwuntan, managing director and regional executive of Ecobank Nigeria, has started work today in his new role. The vastly experienced banking professional is passionate about bringing customer-friendly banking services to every household in Nigeria. This means that Nigerians can expect a more customer-friendly Ecobank as well as continued market-leading banking innovation that will make their banking easier, more convenient and an overall better experience. The Ecobank Group aims to serve 100 million customers by the end of 2020 and intends for many millions of them to be in Nigeria.

Akinwuntan explains; “My mandate is to deliver the brand promise of Ecobank as a leading financial institution in Nigeria in the hearts of our customers by ensuring that we treat our customers well when they choose to open a bank account with us or do their payments, collections, savings and financing through us. In this manner, we will realize the vision of our founders, which is that Ecobank is the pan-African financial institution that empowers every African to realize their ambitions through convenient, accessible and affordable banking products and services delivered at a price point that is affordable to all and gives quality returns to shareholders.

The foundations that will ensure we serve the needs of our consumer, commercial and corporate clients through our digital solutions such as the Ecobank Mobile app, EcobankPay, Rapidtransfer, XpressAccount, Xpress Point agents, Ecobank OMNI and Bank Collect, have been laid. Ecobank has built an unrivalled banking platform in Africa and we have earned several accolades within and outside Africa in the past decade which is a testimony of the transformational role we play in various markets in Africa.

We will therefore continue to leverage the deep market knowledge of Nigeria that we have, our unrivalled panAfrican reach, digital platforms, Ecobank branches and Ecobank agencies (EcobankXpress) to empower our customers, drive commerce, financial inclusion and support Nigeria’s renewed focus on becoming the trade hub of Africa.”


The new managing director and regional executive says he is a thorough-bred Ecobanker and has the requisite skills, experience and background to enable a seamless transition as he takes up his new role. “My combined and diverse Group and country experience built over 20 years and covering virtually all key aspects of banking and the track record and trust built amongst my colleagues and customers of the bank will serve me well in this new role.” he explains. I am indeed privileged for the opportunity to serve in the noble mission of Ecobank, bringing financial integration to our continent and it is a particular pleasure to be able to now do so in Nigeria.”



– Sept. 5, 2018 @ 13:55 GMT |

Ecobank launches ‘Emerald Business’ Club

Ecobank Nigeria has launched its ‘Emerald Business Club,’ an electronic platform aimed at offering convenience, accessible banking services especially to small and medium size enterprises, local corporates and various clients in the commercial sector. The initiative was launched in Lagos last week.

Charles Kie, outgoing Managing Director, Ecobank Nigeria, explained that the new product was for its commercial clients as well as well as to support the SME sub sector, stating that the bank wants to bond with its customers, giving them access to markets, finance and development partners such as the Bank of Industry, BoI.

According to him, “We believe we have a responsibility in providing them with solutions that would help them take care of their businesses in an efficient and cost-effective ways. We made these solutions available to our customers to enable easy and fast payment, to enable speed in connections for transactions between customers and their merchants. We are providing them with the framework in which they can also interact with us.”

He explained that “For this reason, we have resolved to expand our scope in our Commercial Banking Businesses and have designed a wide range of products specifically tailored to meet the needs of target customers largely local corporate, SMEs and Key Public Sector participants. We have also developed a number of initiatives to support trade business and lending to our target customers. We are willing to work with the peculiarities of each customer’s business so as to grow the economy. In the same vein, The Emerald Business Club is being proposed as an implementation platform for this Ecobank focus approach.”.

Kie maintained that “Our pan African Footprint has consistently provided a strong platform for us to support trade and business growth across Africa. No other bank is better placed to serve you better than Ecobank. The bank is once again offering an amazing opportunity via the ‘Ecobank Emerald Business Club; our commercial bank customers who have been loyal now have an exciting time ahead of them.”

Also speaking at the event, the Head, Commercial Banking, Ecobank Nigeria, Mr. Rotimi Morohunfola, stated the need to make its customers have a competitive edge.

According to him, “We are launching this platform which we think is beneficial to our customers and of course would bring significant impact to their businesses. “For our commercial clients, we have set out an Emerald Club and the whole idea is to better bond with our customers, give them information about business opportunities across Africa. It would also provide access to markets, finance in partnership with Development Bank of Nigeria, DBN, BoI and Ikooba Technologies.”

Giving the background,  O’tega Odjegba, segment head, SME,  Commercial Banking, Ecobank Nigeria,  said “In 2014, Ecobank launched its SME Club initiative which also served as a platform for adding value to SMEs through capacity building, networking, access to markets, access to finance, products and services. In doing all these, the bank’s objective was to improve customers’ satisfaction.

He noted that “With lessons on what did not work and taking into consideration, customers’ feedbacks and needs, it was decided to revamp SMEs Club and rename it Emerald Business Club with more features and more benefits. The most significant change of the extension of the club is the Zero maintenance fees, fast track transactions for emerald club members, networking seminars and business forums.”

He  explained that the main objective of Emerald Business Club is to occupy the domestic private sector, local corporates and SMEs, listing other benefits of being a member of the club include access to low cost funding at low interest rates, capacity building, SME networking, fasttrack transactions, product building, access to financial advisory, among others.

– Aug. 31, 2018 @ 18:59 GMT |

UBA pays Shareholders N6.84bn as Dividend

The United Bank for Africa, UBA, has announced the payment of N6.84 billion to shareholders as interim dividend for the first half of this year. The bank also grew revenue by 16 percent to N258 billion from N223 billion within the six-month period.

Audited report and accounts of UBA for the half year ended June 30, 2018, released on Wednesday, August 29, at the Nigerian Stock Exchange, NSE, showed strong growth across key performance indicators with significant contribution from its African subsidiaries.

A breakdown of the dividend recommendation indicates that shareholders will receive an interim dividend per share of 20 kobo, sustaining a trend of rewarding shareholders twice in a financial year. Key extracts of the audited report and accounts showed that gross earnings rose from N223 billion in first half 2017 to N258 billion in first half 2018.

Operating income stood at N168.5 billion compared with N161.8 billion in the first half of 2017. Notwithstanding the inflation-induced cost pressure in the period, UBA finished the first half of the year with profit before tax of N58.1 billion.

After taxes, net profit rose by 3.4 percent to N43.8 billion in 2018 as against N42.3 billion recorded in comparable period of 2017. These implied pre-tax and post-tax return on average equity of 23 percent and 17 percent respectively.

Also, the bank’s total assets grew by 4.9 percent to N4.27 trillion while customer deposits rose by 6.1 percent to N2.90 trillion. This growth trajectory underlines UBA’s market share gain, as it increasingly wins customers through its re-engineered customer service and innovative digital offerings.  The group’s shareholders’ funds remained strong at N496.3 billion, even as implementation of IFRS 9 impacted the total equity of the bank and its peers.

Analysts noted that the double-digit growth in revenue despite declining yield environment in two core markets, Nigeria and Ghana, underscored the capacity of the group to deliver strong performance through economic cycles, even in a challenging business environment.

UBA’s foreign operations continue to grow in importance, contributing 40 per cent of the group’s profit, which according to analysts attests to the benefit of UBA’s pan-African strategy and reinforces the bank’s objective of achieving 50 percent earnings contribution from offshore subsidiaries.

Kennedy Uzoka, group managing director, UBA, said the first half performance reflects the resilience of the group’s business model and strategies. “Despite declining yields in two core markets, Nigeria and Ghana, we delivered double digit growth in gross earnings. Our performance demonstrates the success of our digital banking initiatives and broader customer-first strategies,” he said.

According to him, the group is integrating banking to its customers’ lifestyle, simplifying processes for routine transactions and driving financial inclusion by making banking services accessible and affordable. “We are creating opportunities for wealth creation and economic progress, as we empower our customers through innovative platforms and solutions that support their personal and business growth.

“Our commitment to delivering excellent service is paying-off, as we increasingly win a bigger share of customers’ wallet across our chosen markets,” Uzoka said.

– Aug. 31, 2018 @ 17:15 GMT |

Nollywood Actress becomes Keystone Bank’s New Brand Ambassador

The Keystone Bank Limited has signed up Funke Akindele-Bello, Nollywood actress, writer and producer, popularly known as ‘Jenifa’ as its official brand ambassador. By virtue of this partnership, Akindele-Bello will prominently represent the bank brand and feature heavily its marketing campaigns and consumer-focused strategies.

She is also expected to leverage on her large followership and popularity that cuts across socio-economic classes and age groups to further deepen the bank’s brand growing impression in the market. Speaking during the contract signing ceremony at the bank’s head office in Lagos, Obeahon Ohiwerei, group managing director, Keystone Bank, said the bank will explore every good platform to deepen its strength in the retail and youth segment.

“The Nigerian entertainment industry is driven largely by SMEs and is growing exponentially, positioning the nation globally and positively impacting our Gross Domestic Product, GDP. We are extremely pleased to partner with a hardworking entrepreneur like Jenifa who is also a role model to a wide spectrum of youths and people from all walks of life. This partnership aligns with our corporate objective of supporting SMEs and empowering enterprising women, through our PINK account and network,” he said.

Commenting on the development, Akindele-Bello revealed her excitement at being the bank’s choice which according to her, is a great institution that is fast making its marks in the sector.

– Aug. 31, 2018 @ 17:05 GMT |

FirstBank Digital Lab convenes Second Fire Side Chat

FIRSTBANK Digital Lab will convene for its second fireside chat on Friday, August 31.  The Bank’s digital lab would play host to the event with the topic “Artificial Intelligence in Banking and Payments”, facilitated by Ope Adeoye, managing partner, 2iLabs.

the FirstBank Digital Lab Fireside Chat is a public conversation that brings together active players in the technology community to have thought-provoking discussions, revealing new perspectives on a range of discussion points, pulling out genuinely relevant insights.

The topic for this edition is in recognition of the extensive and growing impact Artificial Intelligence, AI, is having on the modus operandi of the Nigerian banking industry as a basis for competitive advantage in service delivery by industry players and its culminating influence in the experience by end users, customers.

The monthly series which debuted on Friday, July 17, highlights FirstBank’s digital-centric approach to business as it aims to promote fintech penetration amongst its stakeholders. The engagement provides a vantage forum for practitioners to have experience of success stories and foster the exchange of ideas on trends in the industry.

First Bank of Nigeria Limited, FirstBank, is the premier bank in West Africa and the leading banking services solutions provider in Nigeria. With some 14 million customer accounts, FirstBank provides a comprehensive range of retail and corporate financial services with over 750 business locations. The Bank has international presence through its subsidiaries, FBN Bank (UK) Limited in London and Paris, FBNBank in the Republic of Congo, Ghana, The Gambia, Guinea, Sierra-Leone and Senegal, as well as a representative office in Beijing.

– Aug. 30, 2018 @ 16:00 GMT |

Governor Wike lauds Sterling Bank’s Commitment to Environment

GOVERNOR Nyesom Wike of Rivers State has commended Sterling Bank Plc for its commitment to promoting sustainable environment practices in the state. The governor also urged other banks and corporate organisations doing business in Rivers State to emulate Sterling Bank.

Governor Wike, who made the appeal yesterday at the unveiling of the giant size public artwork, Soiled Soil, at Station Road Roundabout in the Town Area of Port Harcourt, said the artwork is Sterling Bank’s contribution to the restoration of Port Harcourt to its “Garden City” status.

The artwork created with used tin tomatoes cover, disposable nylon and used sack bags was one of the four winning entries from the RecyclArt Competition initiated by Sterling Bank to inspire a new generation of Nigerian artists and art genre. As part of the Sterling Environmental Makeover, STEM, programme, the initiative plays a significant part in the fulfilment of the bank’s brand purpose of enriching lives.

The governor said the artwork installed in a beautified roundabout constructed by Sterling Bank, has shown that waste could be put into meaningful use. “Port Harcourt used to be the Garden City in Nigeria. We commend Sterling Bank for its role in the restoration of that status. This project will help illuminate the surroundings.”

The governor noted that using waste for art and beautification would help reduce flooding, adding that “Flooding is caused by the activities of human beings. We all have a role to play. Banks and other organizations also have a role to play. Other banks and organizations should emulate Sterling Bank.”

Also, at the event, Emmanuel Emefienem, executive director at Sterling Bank, explained that the bank is committed to promoting good sanitation, hygiene and environmental sustainability across Nigeria through the STEM programme. He said the RecyclArt competition was introduced to empower young artists and, at the same time, promote recycling of waste materials in the interest of the environment.

“The response to the initiative has been remarkable. Young people from across Nigeria submitted 630 entries in the maiden edition held last year. At the end of a rigorous screening exercise, our esteemed panel of judges shortlisted 16 entries. “The shortlisted entries were deemed to have fulfilled the requirement of transforming old, recycled and reused objects into amazing pieces of contemporary and relevant art for public spaces.

“The 16 finalists were asked to create miniature versions of their proposed works, which were then submitted for exhibitions at the African Culture and Design Festival which had architects, designers and art connoisseurs from about 100 countries in attendance.”

– Aug. 24, 2018 @ 17:10 GMT |

Wema Bank launches Hospital Management Solution System

THE Wema Bank Plc has launched a comprehensive Hospital Management Solution System designed to enhance the day-to-day operations of hospitals in Nigeria by digitising core administrative processes and patient data management in medical centres. The hospital management solution system is a one stop-shop single technology platform that enables patients make payment (Cash or card) at various cash points.

It improves the daily operations of hospitals and medical centres by providing a simple, transparent, accountable and integrated solution for better returns for the hospitals and a seamless experience for the patient. Also, a statement from the bank explained that the solution has the capacity to generate reports such as accounting, revenue collections/volume, transactions, intelligence report, inventory management reports among others.

“Most hospital operations generate substantial amount of cash at any given time during operating hours but the solution ensures a reduction or complete elimination of revenue losses due to pilferage, unaccountability and lack of adequate reporting. The solution runs via point of sale terminals and will capture patient details, with the intent of providing proper monitoring, accountability and reconciliation of data. The POS terminal is integrated at the backend to interact with the hospital ICT system. It also helps in effective management of patient history database,” it said.

In addition, the customer’s management module allows patient data to be captured and retrieved whenever the need arises. Using a customised card, patients’ data, customer’s transaction history, details and information are well archived for future references and encrypted via our unique Quick Response (QR) code system.

The POS solution is also customisable to have the look and feel of any hospital identity and can be re-designed to capture the unique revenue heads in the hospital. The pilot was launched at the University College Hospital (UCH) Ibadan, Oyo State, recently.

Ademola Adebise, acting managing director, Wema Bank, noted that the bank’s bid to become the most innovative bank in Nigeria drives it to deliver cutting-edge solutions that saves time and money and offers superior value to all stakeholders. “Our aim is to bring banking directly to our clients thus offering a holistic and integrated approach to financial services needs and other valuable convenience.

“The hospital management solution system is a state of the art and affordable retail business solution that meets the limitations and challenges surrounding the hospital on turnover related business. Wema Bank Plc places a high premium on adding value to partner organisations. We have state-of-the-art IT solutions that are second to none and we are very well positioned to offer our clients access to the most modern electronic banking facilities.”

He said the bank’s keenness to consolidate its position as a leader in the digital banking space has seen it build a robust portfolio of digital solutions tailored to meet a diverse pool of customers and tailored to suit the dynamic lifestyles of students, budding entrepreneurs and young professionals.

– Aug. 24, 2018 @ 17:09 GMT |

10 things banks ask for business loan approval

ONE of the first things overly-optimistic entrepreneurs discover as they look for funding is that banks don’t fund business plans. In their defence, it would be against banking law if they did. Banks are dealing with depositors’ money. Would you want your bank to invest your current account balance in a start-up? I would not and neither would the banking regulator, according to

So, here is what to expect a bank to ask for when you apply for a commercial loan for your business. There will be occasional exceptions to every rule but here are the general rules:


As explained above, banks do lend money to start-ups. One exception to the rule is that there are programmes that guarantee some portion of start-up costs for new businesses, therefore, banks can lend them money with the government, reducing the banks’ risk.

So, your business has to have hard assets it can pledge to back up a business loan. Banks look very carefully at these assets to make sure they reduce the risk. For example, when you pledge accounts receivable to support a commercial loan, the bank will check the major receivables accounts to make sure those companies are solvent; and they will accept only a portion, often 50 or sometimes 75 per cent, of receivables to back a loan.

When you get an inventory loan, the bank will accept only a percentage of the inventory and then examine your claims carefully to make sure it is not old and obsolete inventory.

The need for collateral also means that most small business owners have to pledge personal assets, usually house equity, to get a business loan.

Business plan

There are exceptions, but the vast majority of commercial loan applications require a business plan document. Nowadays, it can be short—perhaps even a lean business plan—but banks still want that standard summary of company, product, market, team, and financials.

All of your business’s financial details

This includes all current and past loans and debts incurred, all bank accounts, investment accounts, credit card accounts, and of course, supporting information such as tax identity numbers, addresses, and complete contact information.

Complete details on accounts receivable

This includes aging, account-by-account information (for checking their credit), and sales and payment history.

Complete details on accounts payable

This includes most of the same information as for accounts receivable and, in addition, they will want credit references, companies that sell to your business on account that can vouch for your payment behaviou646r.

Complete financial statements, preferably audited or reviewed

The balance sheet has to list all your business assets, liabilities and capital, and the latest balance sheet is the most important. Your profit and loss statements should normally go back at least three years, but exceptions can be made, occasionally, if you don’t have enough history, but you do have good credit and assets to pledge as collateral. You will also have to supply as much profit and loss history as you have, up to three years back.

Regarding audited statements, having ‘audited’ statements means you have paid a few thousand take some formal responsibility for their accuracy. CPAs get sued over bad audits. The bigger your business, the more likely you will have audited statements ready as part of the normal course of business for reasons related to ownership and reporting responsibilities.

Having statements reviewed is a lot cheaper. Banks won’t always require audited or even reviewed statements because they always require collateral, assets at risk, so they care more about the value of the assets you pledge.

All of your personal financial details

This includes net worth, details on assets and liabilities such as your home, vehicles, investment accounts, credit card accounts, auto loans, mortgages, the whole thing.

For businesses with multiple owners, or partnerships, the bank will want financial statements from all of the owners who have significant shares.

And yes, as I implied in the introduction to this article, that’s leading to the personal guarantee. Expect to sign a personal guarantee as part of the loan process.

Insurance information

Since it is all about reducing the risks, banks will often ask newer businesses that depend on the key founders to take out insurance against the deaths of one or more of the founders. And the fine print can direct the payout on death to go to the bank first, to pay off the loan.

Copies of past returns

This is to prevent multiple sets of books—which I think would be fraud, by the way—but banks want to see the corporate tax returns.

Agreement on future ratios

Most commercial loans include what we call loan covenants, in which the company agrees to keep some key ratios—quick ratio, current ratio, debt to equity, for example—within certain defined limits. If your financials fall below those specific levels in the future, then you are technically in default of the loan.

CBN, NIBSS, Banks to take BVN Enrolment to Local Councils

AS part of efforts to aggressively accelerate financial inclusion in the country, the Central Bank of Nigeria, CBN, the Nigeria Interbank Settlement System, NIBSS, commercial banks and mobile operators are currently working on modalities to take the Bank Verification Number, BVN, enrolment to the head offices of the 774 Local Government Areas in the country.

This is expected to capture the large number of the unbanked population, encourage and bring them into the financial system. Also, over 70,000 new financial access points have been created in the country since the Shared Agent Network Expansion Facility, SANEF, was created.

Bolaji Lawal, a member of the technical committee on SANEF, who disclosed this in a presentation in Lagos, pointed out that at 33 million BVN enrolment presently, the group plan to achieve 70 million registration by 2020. He said 10,000 remote BVN devices ordered by NIBSS are currently being deployed to banks, mobile money operators and the super agents.

“We are committed to enrol 40 million new unique BVNs between now and year 2020: 10 million in 2018, 15 million in 2019 and 15 million in 2020. NIBSS will pay agents N100 for every unique BVN enrolled,” he said.

Lawal also said nine operators currently party to the project have been empowered with N4.5 billion. In addition, he also revealed that three mobile money operators: Paga, Cellulant, eTranzact, had been engaged, while six super agents: Interswitch, Capricorn, Innovectives, Inlaks, Unified Payments and Xpress Payment, are part of the project.

He said a savings account product with an array of features (insurance, pension, and micro credit) would be created to be a pull factor to attract the financially excluded into the system. “We are liaising with regulators (CBN, NAICOM) to secure approval and launch product by October 1, 2018. Other products planned include: micro retail loans; micro retail savings; retail insurance and micro pensions.”

SANEF is a project powered by the CBN, banks, NIBSS, licensed mobile money operators and shared agents with the primary objective of accelerating financial inclusion in Nigeria. The initiative involves on-boarding 40 million low income and unserved Nigerians into the financial system, increasing financial access points from the current 50,000 to 500,000 by 2020 and deepening access to mobile and digital financial products and services such as savings accounts, micro loans, insurance, pensions by Nigerians.





– Aug. 17, 2018 @ 11:39 GMT |

GTBank to use Cash Deposits to Grow Loan Book

GUARANTY Trust Bank, GTBank, is planning to use some of its cash deposits to help grow its loan book. The bank intends to grow the loan by 10 percent by the end of the year after credit declined in the first half.

The bank expects to boost loans to compensate for a drop in yields from treasury investments. Segun Agbaje, chief executive officer, said the bank could earn a yield of about 7 – 9 percent on loans compared with cash deposits in foreign banks earning two percent.

Agbaje said the bank would take $700 million to $800 million out of its placements with foreign banks and deploy that into loans. “We will still see some growth in our upstream (oil and gas) book,” Agbaje was quoted by Reuters to have said.

Loans fell 11 percent in the six months to June following a nine per cent decline last year, the bank said on a call with analysts. Agbaje said interest income declined as yields on treasury bills fell but the bank would push fees and commissions to boost growth.

GTBank posted 8.4 percent rise in pre-tax profit to N109.6 billion for the first half while interest income was N117.93 billion versus N129.54 billion a year ago. Several lenders expect to grow loans this year as the Nigerian economy recovers from a 2016 recession.

Agbaje said he wants to grow profit from African subsidiaries to around 20 percent by boosting the performance of its East African businesses. He said units outside Nigeria accounted for about 12 percent of profit.


– Aug. 17, 2018 @ 11:29 GMT |