BANKING SECTOR IN NIGERIA

Then and Now
Once upon a time, the banking landscape was dominated by “the big three” namely, First Bank, Union Bank and Afribank. There were other players like ACB, Bank of the North etc. Going to withdraw money from the bank involved taking half a day off work. To get quick service, you needed to know one of the tellers. It was the days of the infamous tally number. Some housewives dropped their cheques or passbooks, collected their plastic tally, and proceeded to the market to shop. Going to a banking hall was a nightmare.

Enter the “new generation” banks, led by Zenith, GTB and co. Suddenly, you can now cash your cheque in thirty minutes and you are out of the banking hall. Then wonder of wonders, you can transact business from any branch.

The landscape has changed dramatically. The then “big three” were left panting and out of breadth. Today, membership of the “big three” is now a game of musical chairs, with Union Bank and Afribank conspicuously missing. Customer service had changed the game. However, it was not yet Uhuru.

The Nineties
To enjoy this new level of customer service, you need to be loaded. You needed a princely sum of five hundred thousand naira to go near any Zenith branch in Victoria Island to open a current account. Others like Ecobank and co demanded fifty thousand naira to open a current account. New generation banking was not for the masses. Customer service officers in mini skirts sized you up as you stepped into the banking hall, to determine if you are worth attending to. Banking with a new generation bank in the nineties was a sign that one has arrived.

The wave of banking distress in the nineties, and the advent of universal banking poured cold water on the banks and mellowed them down. Like the Berlin wall that came down, the doors were finally opened to the working class, and branches are opened in "masses joints".

Post Consolidation
With the mad dash for the top occasioned by the banking consolidation of 2005, the doors were finally opened to the masses. As a matter of fact, you no longer need to go to the “new generation” banks to open an account. Marketing officers now come to your office to give you the forms, and come back for your passport photograph when they become available. If possible, they may come with a camera to take your picture to speed up the process. All they need is your name and address, and maybe where you work. No amount is required as an opening deposit. Just agree to open an account, and you have one. For current accounts where you cannot readily come up with references, you are told not to bother. They will get one in-house for you. Gone are the arrogant looks and nose in the air mien. You are welcomed with a smile.

Times have indeed changed. Marketing offices are given targets, and some employ some creative tactics and feminine wiles to mobilize deposits. Some lose their jobs for not meeting their targets. Traditional esusu practitioners that mobilize funds from traders and artisans are being given a run for their money. Bank marketing staff have invaded the market place and mopped up the deposits. The market women do not need to go to the banking hall to deposit their proceeds. The banks come to them.

The stiff competition in the banking industry has driven customer service in Nigerian banks to world-class levels. Nigerian banks can hold their own anywhere in the world. Nigerian banks have realized that their customer base is their most prized asset, and to stay ahead of the competition, they need to introduce world-class products, and deliver on their promises. They are also aware that the average Nigerian now maintains accounts with more than one bank. Voting with your legs has never been easier. All you need do is use your ATM card to clean out your account, and allow it to go dormant.