Banking
GTBank Applies for Payments Firm, to Split Banking Operations into Three
By Dipo Olowookere
After conquering the banking sector in Nigeria, Guaranty Trust Bank (GTBank) Plc is looking to disrupt the financial technology (fintech) space by formally launching its payments arm.
The Managing Director of the lender, Mr Segun Agbaje, informed analysts this week that an application for the establishment of GTBank’s fintech company would be filed before the end of the week.
According to Mr Agbaje, this payments company will be part of the new structure of the company from the first quarter of 2021.
GTBank is planning to operate as a financial holding company, which will enable the organisation to operate in other sectors and thereby increase its revenue and profits.
In the past, GTBank and other banks were allowed to delve into other businesses, but the Central Bank of Nigeria (CBN), which regulates the sector, later directed banks to only face their core business, banking.
This forced most lenders to sell-off their other businesses in insurance, stockbroking, asset management and others. Only those allowed to still have these arms are banks operating under a holding structure like Stanbic IBTC, FBN Holdings and a few others.
GTBank is planning to become a holding company from next year to allow it to operate in other sectors in the financial services industry.
At the analyst call monitored by Business Post, the MD/CEO of the financial institution said the proposed GTBank Holding Company (Holdco) will operate an asset management company, Pension Fund Administrator (PFA), a payments company and the banking business.
However, he said the banking arm will be split into three and will comprise GTBank Nigeria, GTBank East Africa and GTBank West Africa.
He noted that the managing director for the GTBank Nigeria will likely be announced by October 2020.
“On the Holdco structure, arrangements are going very well and as you know, it is a financial holding structure, which means we will need regulatory approval from the central bank, SEC (Securities and Exchange Commission) and other areas we do business,” Mr Agbaje said.
He explained that, “We will have the central unit, which will be the controlling body and a couple of business units.
“In terms of the bank operations, we are going to split it into three; GTBank Nigeria, GTBank East Africa and GTBank West Africa.
“We will then have other business units like asset management, a PFA and a payments company. Hopefully, this week, we will put in our application for final approval for the payments company.”
Speaking further, the banker, who is retiring from the position in 2021, stated that, “For the asset management and PFA, we are going through due diligence as we speak on an entity.”
“I believe we will be ready to go live will the Holdco structure by the first quarter of next year. We are just working on an operating model and others in preparation for the kickoff,” he declared, noting that, “I am really excited about the Holdco structure. I think everything that happened in the pandemic has proven that we are on the right part.”
He expressed optimism that the proposed payments company of GTBank will succeed because of the level of inflows and outflows in the space.
GTBank is not relatively new in the payments industry in Nigeria as it already has a platform called GTPay. However, the ecosystem is filled with top players like Interswitch, Paga, Paystack, Rave by Flutterwave, PayU, Remita, QucikTeller and a couple of others.
By Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
By Adedapo Adesanya
The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.
The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.
Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.
Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.
“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”
Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.
“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.
Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.
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