The Central Bank of Nigeria (CBN) has granted a non-interest banking licence to Lotus Bank Limited.
This follows Lotus Bank’s plan to deliver an alternative option to interest-based banking and cater to the needs of the banked, unbanked and underbanked.
This disclosure is contained in a statement titled ‘CBN grants Lotus Bank licence to commence non-interest banking operations’ issued by Lotus on Thursday.
READ: Sterling Bank hints on non-interest banking license
What Lotus Bank is saying
The bank’s statement partly reads, “Lotus Bank seeks to pursue the mission of creating value and growth for all through digital innovation and best-in-class customer experience for Nigerians.’’
It stated that non-interest banking was geared towards supporting the real sector and Lotus Bank aimed to improve financial inclusion in the country adding that it would operate transparent pricing models as it was the norm in non-interest banking.
The statement further says, “Our values are deeply rooted in partnership. A critical component of our mission is the provision of innovative solutions that drive ethical prosperity for all stakeholders. We pride ourselves on digital solutions that provide our customers with the convenience of unlimited access to our services and products.’’
READ: CBN issues new licence and capital requirements for FinTechs
It also states that Lotus Bank is managed by a team of seasoned professionals and financial experts led by the Managing Director/Chief Executive Officer, Mrs Kafilat Araoye, who has over 25 years of commercial banking experience.
Araoye pointed out that Lotus Bank’s focus and guiding principle is to deliver an alternative option to interest-based banking and to cater to the needs of not just the banked but also the underbanked and unbanked population.
She stated that the bank’s products and service offerings will include non-interest business financing, deposit products (current, savings and investment accounts) and personal financing.
What you should know
Founded and Chaired by Mrs Hajara Adeola, who is also the founder and managing director of Lotus Capital (the pioneers of non-interest finance in Nigeria), the bank said it was starting its operations on a solid foundation of experienced leadership and a strong advisory council of experts.
Lotus Bank is the first non-interest bank to commence operations from South-west, Nigeria with a focus to serve people of all faith.
With its flagship branch located at Victoria Island, Lagos, the bank will open its doors to customers from July 2021.
Ok
I happily and sincerely commend your foresight and fortitude to pursue what seems impossible. This step is aimed at alleviating commercial transactions among Nigerians. More prosperity for the bank in shaa-ALLAH.
Can someone please explain how non-interest banking works?!
Is it like islamic finance?! Where the bank invests (eg purchases an asset for a client) and agree to share the profits or loss in a specific manner?
Yes. You’re correct.
I’m interested in being a poineer client to Lotus bank , Do they have a branch in Abuja ? Do they requir Collateral to grant facility to their customers ?
Good morning to you and your team. I will be happy if you can give me Grant to improve and expand my farm.
This is a giant step!
Kudos to the founders of this great bank.
I look forward to partner with the bank, provide useful and lives transforming concepts toward total financial stability for all Nigerians.
I will also support by introducing workable strategies that will bring millions unbankeable Nigerians to open accounts and enjoy the numerous benefits the new bank is going to bring on board.
Am proud to associate my self with the bank at this takeoff point.
May Allaah make it easy and grow your Halal option to the benefits of all. I hope you also work on staff pensions window to save workers from some activities that are against their spiritual interest
Am interested in your non interest banking project. Can you extend it to Delta state? I will give you all the support you may need to be established here.
Brilliant! I’ve been looking forward to this day!
Congratulations Mrs. Hajara Adeola on this test.
Indeed,,Lotus bank has come to stay.
Yes Nigeria is regaining her straight back after covid19 I mpact.
Can we access loan to get by to Agric work.
What does this mean, does it mean if I apply for loan from lotus bank I will not be given on interest only pay the capital I borrowed?
You should try and bult that in North East part of the country.
Kudos to this organisation. I am from Edo state.
Please see to it that you extend your tentacles here.and let me know the moment this is done.
Thanks
09074008440
Moses Ikponmwen
It worth joining… please you guys can open a branch in Port Harcourt. I’m even enjoying Jaiz bank which has similar policy.
I just want to say a big kudos to the founder, Adeoloa Hajara and the management. Allah reward you all. Amin