NIGERIAN banks must rethink their operating models to provide more value to customers, drive inclusive economic growth, and boost investor confidence, says Subomi Plumptre, CEO of Volition Capital Investment Limited, an SEC-licensed African asset management firm.
Speaking on the future of banking in Nigeria, Plumptre highlighted that most commercial banks have relied heavily on low-risk strategies, primarily investing depositors’ funds in government bonds and treasury bills.
“Nigerian banks don’t work for you; you work for them,” she said. “They take cheap deposits, make secure investments, and pass on only a fraction of the returns.”
Plumptre stressed that the reluctance of banks to issue unsecured loans stems from systemic inefficiencies in Nigeria’s legal system.
“If a borrower defaults, banks rarely get justice. So they focus lending on companies with reclaimable assets,” she explained. This leaves individuals and small businesses underserved, paving the way for loan sharks and unregulated lenders to fill the gap.
To unlock value, she recommends banks explore smart lending through AI-driven credit models, piloting loans to individuals statistically likely to repay—even without collateral. “Also, consider venture debt with profit-sharing components and subsidize access to business plan development and financial services for SMEs,” she added.
Another key reform, according to Plumptre, is overhauling dispute resolution. “If the Securities and Exchange Commission can run a tribunal with clear timelines, banks can too. Adjudication should not be a nightmare.”
Retail banking, she said, has also evolved. Plumptre urged banks to scale agent networks and adopt intuitive tech. “Stop rolling out tech upgrades without proper communication. Make your apps so simple a child can use them.”
She also proposed rethinking customer engagement through inclusive local enterprise fairs, farmers markets, and community-focused events. “Only your customers should occupy vendor stalls—and only your POS machines should be used. It is a win–win,” she said.
“Empower your account officers to be financial advisers, not just customer reps. Deliver value, not just transactions.”
These practical strategies, Plumptre concluded, could help Nigerian banks stay competitive, grow customer trust, and contribute meaningfully to national development.
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