Segun Agbaje provides a unique insight into GTB’s digital strategy


Guaranty Trust Bank is currently Nigeria’s most profitable bank and largest by market capitalization. It is also the most efficiently run bank boasting of the lowest cost to equity ratio since the post banking consolidation era.

The bank’s expansion strategy has enjoyed remarkable success, with businesses outside Nigeria now accounting for 15 percent of total deposits, 11 percent of its loans and around 8.2 percent of its profit. The bank’s customer base has grown from around two million to over 10 million, and we have built a very strong e-business as well.

However, in terms of income from mobile banking it is way behind especially when you compare it to the rest of the FUGAZ (FBNH, UBA, GTB, Access bank and Zenith Bank). It appears though, that GTB is again positioning itself to dominate this space.

In an email statement made sent to Nairametrics, Segun Agbaje talked about GTB’s plans to go digital.

On going digital with GTB

“Encouraging as these projections are, we know that there’s a lot more to be done. This is why, at GTBank, we are keen to leverage digital technology to expand the reach of our products and services. Mobile has become very, very big and we have begun to see people doing a lot using their mobile phones. When I look at our mobile technology compared to a lot of developed economies, I think we’re a lot further ahead. You know, I actually think that the African banking sector is very much ahead in terms of mobile banking. And I think African banks are probably embracing disruptive technologies a lot quicker, because we don’t have as many legacies.”

Making banking more mobile

“The world is changing around us and the future of banking is digital. To protect our traditional business and maintain our social relevance, we are incorporating another model, which involves mobile phones, use of data, partnerships and collaborations. Simply put, we are creating a platform to support our traditional business model by leveraging digital solutions.”

Competing beyond just banks

“Core to our digital strategy is both our understanding that the future of banking is digital, and our determination to lead that future…….We know, because digital technologies have dissolved the boundaries between industry sectors, that our competition is no longer just banks. It now includes fintechs, telcos and tech companies that can provide speed and flexibility to customers as we can. This creates tough challenges for the banking sector, but it also creates ample opportunities to extend our footprint.”

 

Insight into how the bank innovates

“We are also tackling the innovation challenge. We now operate an open innovation policy, through which we invest significantly in building our in-house digital capabilities. At the same time, we are seeking effective partnerships and alliances to drive operational efficiency and boost our competitive advantage.

“We want to become a fully digital bank that offers everyday banking services outside of traditional bank walls, but more than that, we want to create digital touch points that ensure we are constantly interacting and playing a deep role in the lives our customers. This of course requires a sustained commitment, and we have repositioned our business structures in such a way that makes us very confident in our continued leadership of Africa’s digital frontier.”

 

 

 

Nairametrics

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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