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Business News

Wema Bank steps up ALAT campaign as total advertising spend nears N2 billion

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Wema Bank Plc reported it spent a total of N556.4 million on advertising in the first half of 2018 a 78% increase from the N311 million spent a year earlier. The bank has steadily increased its advertising spent since it launched its flagship digital online banking platform, ALAT. 

In 2017, the bank spent a total of N1.21 billion on advertising and marketing about three times the N421 million spent in 2016. In total, the bank has now spent about N1.7 billion on advertising in the last 18 months. Wema Bank launched ALAT in May 2017 and since then the bank claims it has enrolled about 200,000 new customers, who have carried out almost 900,000 transactions totaling N12 billion.  

ALAT by Wema Bank has led the way in the digital banking space in Nigeria and is available on the Google and AP store. According to data from the Google Playstore, ALAT has over 100,000 downloads same with the Wema Bank app owned by the parent company. Wema Bank embarked on a massive rebranding exercise in 2015, introducing a new logo and pledging to remain innovative. ALAT was its first major innovative products and since then the bank has spent billions on technology and promotional activities for the application. 

In March the bank released two new features for ALAT that allows it to offer quick short-term loans and a virtual dollar card for paying online internationally. The ALAT Virtual Dollar Card is a non-physical, dollar-denominated debit card designed for online payments. Like ALAT Loans, the card is available to all the bank’s customers through its apps. The ALAT application was recently named ‘Best Digital Bank in Africa’ at the 2018 Asian Banker Awards 

A recent Nairametrics article indicates Nigerian Tier 1 banks spent about N35.7 billion on advertising in the full year ended December 31st, 2017. This amount is slightly above the N31.1 billion spent for the same purpose in 2016. Wema Bank’s advertising spend is still significantly lower than that of other Tier 2 banks such as Diamond Bank and FCMB, who spent about N3.2 billion and N2.1 billion respectively on advertising and promotions.  

Whilst most banks spent more than Wema Bank in absolute terms, the tier 2 bank dwarfed others in terms of year on year growth. For example, Diamond Bank slashed its spending on advertising by over 50% while Zenith Bank Plc, the highest spender, incurred N8.8 billion on advertising cost compared to N9.5 billion in 2016. GTB also slashed its advertising spend from N7.4 billion to N7 billion last year.  

The FINTECH revolution in Nigeria has led the rave for faster, innovative mobile-driven financial inclusion. Several FINTECH applications have been launched over the last three years as developers look to leverage on the nearly over 100 million mobile phone users in Nigeria.

A recent Digital Trend report from Terragon Group indicates Nigeria is the most mobilized country in the world with most of the internet traffic coming from mobile devices. Banks are leveraging on the strength of this and churning out competing mobile banking applications to power mobile payments. ALAT is however, the first fully digital banking application.

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Latest result from the bank for the period ended June 2018 showed net interest income of N9.09 billion for the period ended June 2018 compared to N8.48 billion reported for the period ended June 2017. This represents a 7% increase for the comparative period in 2017. Pre-tax profit was N1.81 billion for the period ended June 2018, a 27% increase from N1.43 billion reported for the period ended June 2017. 

 

  

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

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Billionaire Watch

How young Elon Musk started and sold 3 businesses for $1.9bn before Tesla

We look at the 3 successful businesses Elon Musk founded and sold for a collective $1.9bn before starting Tesla.

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Elon Musk needs $20 billion wealth gain to clinch world's richest man title

Success is never an accident. It is most times the result of many years of hard work and consistent effort. Elon Musk is popular today for his electric car company Tesla and his space project SPACE X. But long before these, he was already a multi-millionaire and had founded 3 successful companies which he sold for a collective $1.9bn.

The purpose of this article is to paint a clear picture of what it takes to be among the top 1% of any field. It takes years of consistent hard work to get there. Elon Musk is the perfect example of an individual with a very strong work ethic. His story below will prove that to you.

This article will briefly look at the 3 successful businesses Elon Musk founded and sold for a collective $1.9bn before starting Tesla. Let’s go!

READ: Blue Origin Vs Space X: Bezos and Musk’s subtle battle for supremacy

Blaster ($500)

A 12-year-old Elon Musk facing bullying in high school and a not so friendly dad taught himself how to code. According to the Inc. Magazine, he mastered BASIC a general-purpose coding language making use of a commodore PC he acquired himself. He later that year, sold the code for his PC game Blastar to a PC magazine for approximately $500.

This was his first business endeavour which he started and sold.

READ: Tesla investor sues Elon Musk for causing problems with his tweets

ZIP 2 ($340m)

After the sale of Blastar for $500, Elon Musk and his brother Kimbal took a $28,000 seed money from their dad and started another internet venture, Zip 2. They rented an office and slept in it because they couldn’t afford a house.

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Zip 2 was a web software startup that created online city guides for newspapers. The software was patronized by the New York Times and other notable media companies.
Elon Musk and his brother Kimbal sold Zip 2 to PC giants Compaq for $340m. The year was 1999 and Elon Musk was 28 years old.

READ: Reinvestment: The powerful strategy used by the 2 richest men in the world

X.com/PayPal ($1.5bn)

Elon Musk continued on his journey of starting companies and selling them. He took $10m out of his earnings from the Zip 2 deal and joined the internet boom.

He founded x.com an online platform he envisioned to be the future of internet banking. In 2000 X.com merged with a Fintech startup, Confinity, founded by Peter Thiel, another would-be billionaire. Both companies combined to become what we know as PayPal today. Elon musk was named CEO of PayPal and had the highest number of shares in the company.
In 2002 PayPal was acquired by eBay for a whopping $1.5bn.

READ: Elon Musk gains $25 billion in a day, as Tesla surges by 20%

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What you should know

Elon Musk has often stressed the need to be consistent and have strong work ethics. In a graduation ceremony by the USC Marshall School Of Business, Elon Musk shared his opinion on work ethics according to CNBC.

You need to work super-hard. Work hard every waking hour,” Musk said in 2014.

“If you do the simple math, and say if somebody else is working 50 hours [a week] and you’re working 100, you’ll get twice [as much] done in the course of a year as the other company.”

We hope this Monday article will inspire you to work harder and strive to get more work done in record time.

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Business News

CAC sets 3-hour time line for company registration in 2021

The CAC is prioritising the reduction of the registration circle for new companies to just 3 hours before the end of the year 2021.

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CAC, Corporate Affairs Commission selects NIPOST as official courier partner

The Corporate Affairs Commission (CAC) has said that following the successful deployment of an end-to-end registration module, it was now prioritising the reduction of the registration circle for new companies to just 3 hours before the end of the year 2021.

This is coming after CAC had in November 2020, announced the implementation of new technology that will change the face of business registration including allowing customers to print their certificates with verifiable QR code from anywhere in the world.

This disclosure was made by the Registrar-General of the commission, Garba Abubakar, at a dinner in honour of the Chairman, Governing Board, CAC and Nigerian Ambassador-Designate to the Kingdom of Spain, Ademola Seriki.

READ: CAC to register companies within 48 hours, approve business name same day

In order to achieve this target, the Registrar-General said the commission was making arrangements to empower over 400 approving officers with working tools to process and approve registration applications either from home or anywhere necessary,” the agency stated.

Abubakar noted that the challenges of the Covid-19 pandemic had adversely hampered CAC’s delivery timeline.

He, however, pointed out that CAC was resolutely committed to serving its customers despite being forced to operate with less than 50% of its workforce.

READ:  CAC registration: 100,000 business names registered for free so far

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While bidding farewell to Seriki, the Registrar-General said he received the news of his appointment with mixed feelings as CAC was going to miss his tremendous support and guidance.

Also speaking at the event, the Minister of Industry, Trade and Investment, Niyi Adebayo, described the outgoing CAC Chairman as a man of immense pedigree and endowed with enormous potential to justify the confidence reposed in him by the president.

READ: CAC re-validation: payment accreditation is one-off

In case you missed it

  • The CAC recently announced the upgrade of its website and online registration portal to include features, which allow for the automation of some selected services and processes, in line with the Federal Government’s mandate of improving the ease of doing business in Nigeria.
  • The selected services and processes include Electronic search of company records, Upgraded Companies Registration Portal for Pre-incorporation filings and Post incorporation filings.

 

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