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Microfinance Banks will champion poverty eradication in Nigeria - Gapbridge MD
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Kunle Akeju, MD/CEO, Gapbridge Microfinance Bank
Kunle Akeju, Managing Director /CEO of Gapbridge Microfinance Bank says the growing number of MFBs makes it easier for them to champion the fight against poverty eradication in Nigeria.He spoke with EMEKA EZEKIEL. Excerpts
Looking at the microfinance policy launched by the Central Bank of Nigeria , one can say without any fear of contradiction, that it is a very commendable policy given its potentials to increase the tempo of economic activities especially in the Small and Medium Scale Enterprises sector.As a matter of fact, it is a policy whose time has come because the only way to Nigeria can ensure sustainable economic growth is to grow its economy from bottom up, and not the other way round". .
With the transformation of over 600 community banks into Micro Finance Banks, more players have come into market. The transformation of these community banks into microfinance banks will deepen the sector. The market for micro finance banks is so large that the number of micro finance banks that we have now cannot satisfy the banking needs of the populace in country where over 80million out of the total population of 140million have no access to banking services. So, the current increase in the number of micro finance banks in Nigeria will provide micro entrepreneurs several options in terms of access to credit, which ultimately will help transform most Small and Medium Scale Enterprises (SME) into mega- businesses.
Competition
Naturally, competition comes when there is saturation in a particular market, or when people offer the same generic products or services. Currently, about 85 per cent of Nigerians live below the poverty level. So, the market for micro finance business is so big to engender healthy competition among players in the industry. The task before microfinance banks is how to focus their resources in terms of helping the common people have easier access to fund his micro business. If you look around, you will discover that there are millions micro entrepreneurs who do not have access to credit facilities. The Central Bank of Nigeria 's report which indicates that over 80 million Nigerians, representing 65percent of the country's active population, are currently not being served by the formal financial institutions, lends credence to this fact.
To be able to service these micro enterprises, MFBs are not supposed to compete with conventional commercial banks. This is because MFBs are structured to serve the poor. For us to be able to make the desired impact, we will never compare ourselves or competewith commercial banks given the fact that our major objective of going into business is to bridge the gap between the rich and the poor because microfinance banks are structured to champion poverty eradication.
Value addition strategy
Our vision is to provide responsive financial services and to be the definition of best standards as an organization and maintain corporate identity that is socially responsible in any environment (foreign or local) that we operate in. Our mission is to always deliver according to industry's best practice, constantly exploring ways of setting new standards with a disposition of maximizing value to all stakeholders. Our unique value-added approach to providing quality service to the diversified clientele we service enables us as financial service providers make land mark and enduring contributions to the development of these customers. Our operations and business philosophy are based on cardinal principles of customer service, customer focus and total quality management. We as a company have decided to look at the broad picture of maximizing value for all stakeholders.
We are focused on helping micro, small and medium entrepreneurs and differentiate ourselves in the market place.
Currently, we have a strong authorized share capital of over N150 million; we intend to increase our liquidity level in order to accommodate more facilities.
We have a mix of diversified employed specialists, coupled with a strong corporate Governance structure, thereby ensuring that our values and professional competence are maintained.
Our Marketing strategy incorporates the use of diverse network of marketers to ensure full coverage of all the suburbs in the city.
To ensure accessibility and full coverage for our customers we currently have correspondence with Oceanic Bank International and Access bank Plc. Our management team is made up of seasoned professionals from diverse academic background that ensures effective and responsive delivery of services to our clients and produce a socially responsible company, which is run in the most cost-effective manner and in line with government regulatory policies and stakeholder satisfaction.
We have adopted strong insurance schemes that would provide full cover for all services rendered. Gapbridge Microfinance Bank is composed of select, versatile professionals, who have diverse business exposure across many global professional services
With the transformation of over 600 community banks into Micro Finance Banks, more players have come into market. The transformation of these community banks into microfinance banks will deepen the sector. The market for micro finance banks is so large that the number of micro finance banks that we have now cannot satisfy the banking needs of the populace in country where over 80million out of the total population of 140million have no access to banking services. So, the current increase in the number of micro finance banks in Nigeria will provide micro entrepreneurs several options in terms of access to credit, which ultimately will help transform most Small and Medium Scale Enterprises (SME) into mega- businesses.
Competition
Naturally, competition comes when there is saturation in a particular market, or when people offer the same generic products or services. Currently, about 85 per cent of Nigerians live below the poverty level. So, the market for micro finance business is so big to engender healthy competition among players in the industry. The task before microfinance banks is how to focus their resources in terms of helping the common people have easier access to fund his micro business. If you look around, you will discover that there are millions micro entrepreneurs who do not have access to credit facilities. The Central Bank of Nigeria 's report which indicates that over 80 million Nigerians, representing 65percent of the country's active population, are currently not being served by the formal financial institutions, lends credence to this fact.
To be able to service these micro enterprises, MFBs are not supposed to compete with conventional commercial banks. This is because MFBs are structured to serve the poor. For us to be able to make the desired impact, we will never compare ourselves or competewith commercial banks given the fact that our major objective of going into business is to bridge the gap between the rich and the poor because microfinance banks are structured to champion poverty eradication.
Value addition strategy
Our vision is to provide responsive financial services and to be the definition of best standards as an organization and maintain corporate identity that is socially responsible in any environment (foreign or local) that we operate in. Our mission is to always deliver according to industry's best practice, constantly exploring ways of setting new standards with a disposition of maximizing value to all stakeholders. Our unique value-added approach to providing quality service to the diversified clientele we service enables us as financial service providers make land mark and enduring contributions to the development of these customers. Our operations and business philosophy are based on cardinal principles of customer service, customer focus and total quality management. We as a company have decided to look at the broad picture of maximizing value for all stakeholders.
We are focused on helping micro, small and medium entrepreneurs and differentiate ourselves in the market place.
Currently, we have a strong authorized share capital of over N150 million; we intend to increase our liquidity level in order to accommodate more facilities.
We have a mix of diversified employed specialists, coupled with a strong corporate Governance structure, thereby ensuring that our values and professional competence are maintained.
Our Marketing strategy incorporates the use of diverse network of marketers to ensure full coverage of all the suburbs in the city.
To ensure accessibility and full coverage for our customers we currently have correspondence with Oceanic Bank International and Access bank Plc. Our management team is made up of seasoned professionals from diverse academic background that ensures effective and responsive delivery of services to our clients and produce a socially responsible company, which is run in the most cost-effective manner and in line with government regulatory policies and stakeholder satisfaction.
We have adopted strong insurance schemes that would provide full cover for all services rendered. Gapbridge Microfinance Bank is composed of select, versatile professionals, who have diverse business exposure across many global professional services
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