Nova Bank anchors commercial banking entry on digital-first focus – Businessamlive (2024)

• Tags self ‘Phygital’ institution

• Targets Ikeja, Apapa, Abuja, Port Harcourt

Joy Agwunobi

Nova Bank Limited launched its maiden voyage into Nigeria’s commercial banking with the recent opening of its first branch in Victoria Island, Lagos, after years as a merchant bank. The bank’s entry marks a transformative shift in the sector, as Nova Bank sets its sights on upending the traditional banking experience with an innovative, technology-driven approach.

Driven by the desire to bring a fresh wave of innovation to the sector, Nova Bank promises to deliver a digital-first banking experience that caters to the needs of both individual customers and businesses alike.

At the core of Nova Bank Limited’s philosophy is a commitment to being a data-driven, customer-centric ‘phygital’ institution. The bank’s focus on combining the physical and digital realms of banking is set to revolutionise the way customers engage with their financial services, with the expectation that this fresh approach will offer new insights and opportunities to help customers thrive in today’s marketplace. This is underpinned by an emphasis on sustainable value creation for all stakeholders and a forward-looking vision that seeks to build a legacy for future generations.

The bank, which formerly operated as Nova Merchant Bank Limited, transformed into a full-fledged commercial bank after acquiring a national commercial banking licence from the Central Bank of Nigeria.

The inauguration ceremony, attended by Babajide Sanwo-Olu, the governor of Lagos State and several business leaders and industry stakeholders, was a notable success for the country’s banking industry.

As part of its expansion strategy, Nova Bank plans to open additional branches in key locations, including Ikeja and Apapa in Lagos. Beyond Lagos, the bank aims to establish its presence in other major cities such as Abuja, Port Harcourt, and Kano.

In discussing the success of Nova Bank’s first official branch opening, Phillips Oduoza, the founder and chairman, expressed his heartfelt gratitude to the bank’s stakeholders and customers for their unwavering support over the years. He also thanked the Lagos State government for providing an enabling environment for the bank’s operations.

Oduoza stated that Nova Bank is committed to long-term societal impact rather than merely maximising profit. He explained that the decision to extend into commercial banking was driven by the desire to reach a broader audience, particularly in the retail and Small and Medium Enterprises (SME) markets. He noted that while the bank has been successful in wholesale banking, it is necessary to tap into the retail market, which has a larger population of banking consumers and offers more opportunities for impactful engagement.

“Our trademarked phygital experience combines a select number of strategically located physical branches with high-tech, seamless digital banking capabilities, ensuring that our customers receive the best of both worlds. This approach allows us to provide personalised, in-person service where it is most needed, while also offering the convenience and efficiency of cutting-edge digital solutions,” he said.

The chairman also highlighted that the new venture aims to support job creation and economic stabilisation in Nigeria. He pointed out that the workforce of Nova Bank has tripled, growing from about 80 members to over 150, with plans to employ more people as the bank expands. This expansion, he explained, is not just about increasing the client base but also about making a tangible difference in the community through financial services provision, consumer credit empowerment, and offering a suite of successful products.

Oduoza reiterated that with a commercial banking franchise, Nova Bank would be able to reach a wider geographical area, and contribute to job creation. He concluded by stating that the more branches Nova Bank establishes, the more jobs it will create, thus making a meaningful impact on the nation’s economy.

In his welcome address, Wale Oyedeji, chief executive officer and managing director of Nova Bank, noted that the launch of its commercial banking operation marked a remarkable success in the bank’s journey, as it transitioned from a merchant bank over the past five years to obtaining a commercial banking licence.

Oyedeji assured customers of an exciting journey ahead as the bank begins commercial banking operations. He further expressed confidence in the bright future of the bank, while also noting that “in the coming months, Nova Bank plans to roll out branches in Ikeja, Apapa, Port Harcourt, Abuja, and other key locations across Nigeria.”

In his remarks, Governor Babajide Sanwo-Olu, commended the dedication of investors and shareholders in the banking sector, who continue to invest in the region despite economic challenges and global uncertainties.

Sanwo-Olu stressed the importance of acknowledging and supporting these investors, emphasising the need to commend, encourage, and maintain strong relationships with them. He pointed out that these investors are willing to bring in additional resources, enabling them to compete on a larger scale despite the risk profiles and economic disruptions present both locally and globally.

“When you see all of the disruption, the global challenges, when you see all of the uncertainty, all of the risk profiles that are abound almost everywhere but more importantly now in the economy; but you still see investors, shareholders that are committed in this environment, that still believe that there’s a need for them not to take their money out, we need to commend them and we need to encourage them.

“And so for us in the public sector, it’s to create that space, that policy, and an enabling environment for you to make those decisions and de-risk whatever challenges you have and be able to take it forward. So I see your vision, sitting with the vision of the federal government, and also sitting with our vision in Lagos,” the governor stated.

Sanwo-Olu reaffirmed the state government’s commitment to providing an enabling environment for businesses to thrive, ensuring that shareholders, investors, and customers see the need to grow their businesses and make additional investments. He also congratulated Nova Bank on its bold transition to a national bank and lauded its innovative digital platform, “phygital,” which merges physical and digital banking services, creating a new niche in the banking sector.

Gabriel Ogbechie, the managing director and CEO of Rainoil Limited, who has been a customer of Nova Bank since its inception, expressed his satisfaction with the bank’s services and support. He remarked that Rainoil has been doing business with Nova Bank from the very beginning and has consistently received excellent service.

Ogbechie expressed confidence that as the bank transitions to a national bank, its future remains very bright, provided it continues to deliver the same level of excellent service and support to its customers.