By Gbenga Adedayo
Contrary to widely held views, the real reason Zenith Bank introduced and is intensifying efforts at retail banking is aimed at market domination of the banking industry.
According to sources within the bank, the recent merger between Access and Diamond has unsettled the bank, prompting it to introduce measures to ensure sustenance of its leadership position in the industry. Besides, it is also strategizing and currently appraising its top management structure which is considered “top heavy”.
Zenith Bank is rattled by calculated projection that by the time Access and Diamond banks complete their merger plans, the outcome or the merged entity will become the biggest bank in Nigeria by assets base, displacing Zenith Bank to second position.
Zenith Bank is reputed for whole sale banking, targeting high networth individuals, blue chip companies and large corporations. This accounts for the high deposit amount required at the point of opening an account.
Managing Director/Chief Executive, Zenith Bank Plc, Mr. Peter Amangbo, in a recent interview with the Vanguard said that the bank is pursuing a retail strategy with focus on increased lending to small businesses, households and individuals at affordable interest rate. “We believe that is an area with a lot of potential. We are looking at individuals, households, small businesses. We are reaching out to them with credit facilities, whether to pay school fees or to meet some obligations pending payment of their salaries or whether to develop their small businesses, we are reaching out“, adding “We are not that perception that we are elitist; no, we are there for everybody, we have different offerings for everybody. So those that don’t even have security, we have ways of handling some of those things too”, he said.
In 2016, Zenith took over the leadership of the Nigerian banking industry by the size of the balance sheet with an accelerated growth from 6.7% in 2015 to 18.3% in 2016, closing the year with an asset base of N4.739 trillion.
Retail banking, also known as consumer banking, is the provision of services by a bank to the general public, rather than to companies, corporations or other banks, which are often described as wholesale banking.