On my way to work today, I heard a promo on the radio from First Bank giving bank depositors the chance to win prizes such as cars, cash, fridges, if the customers deposits a minimum sum of N20,000 for at least 30 days. It got me worried as it brought back memories of similar promos from almost all banks that littered our airwaves in the months and days leading to the banking crisis of 2008/2009.  Back them every bank jostled for deposits and offered all sort of prizes akin to what the telco’s and Fast Moving Consumer Goods people would do. But then, it’s First Bank and I believe they have century long track record which one can at least rely on. However, is the promo working? Let us check.

Bua group

At the end of the Financial Year 2011, First Bank had deposits of N1.94tr which has increased to just over N2tr in the First Quarter of 2012. The increase though marginal was higher than that of the big five (as the table below indicates). Whilst Access saw a slight dip in customer deposits in Q1 compared to the year end 2011, Zenith, GTB and UBA saw a slight increase respectively.

 

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Coronation Research

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As per Savings Deposit, the core focus of the promo deposits was about N495.7b at the end of December 2011. By the end of the First Quarter of 2012 this has increased 3.67% to N513.9b an increase of about N18b. Quite commendable when you put into context the cost of running the promo which I do not consider expensive at all. Whether this is a perfect metric to measure the success of the promo is left for the bank to inform analyst but one thing is for sure, their deposits have risen far above  all the banks in their set combined and success can also be seen in the level of Savings Deposits that have risen.

 

6 COMMENTS

  1. Well done bro!
    Such promos had been the known means used by bank to shove up their deposit base, but I can predict that most of the deposits will lay idle in the bank’s vaults without it being channelled to those who need them if there is no govt ( state or Fed) to sell bonds. Most of these banks find it difficult to lend to genuine borrowers even if they have the best proposal submitted to them.

  2. I won a car on save and excel First bank Promo. I thank the Bank, management and staff.
    My concern is that not a note or letter was given to me on collection of the prize. So i have no idea of obligations and terms of parties governing the use of the branded car. The terminal date is not known. Maintenance and responsibilities during the tenancy of promo with subsisting warranty is not spelt out. In short, First Bank can only do better by spelling out terms, conditions and maintenance back-up to safeguard the live of the asset and the good image of the Bank. Other Banks co-sponsor vehicle operating expense on a fixed rate while the customer parades the brand???
    Thank you.

  3. Help! Firsbank save and excel promo. My mum participate in the just concluded promo of 2012, and she won an LCD. Television down here in Toro brach, bauchi state. But till date she have recieve not her won price, please help us… It will be of great joy if my little complain is been given a clear concise please.

  4. I could remember the first bank SAVE & EXCEL PROMO was good then but the only thing that I find strange is that almost all winners are saying that they have not receive the item won or they do not receive detailed information on how to receive their won item.
    It will be good for the bank to shed more light on it.

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