Banking in Ghana, the story of Nilla Selormey
Nilla Selormey (NS), Managing Director and Chief Executive Officer of Universal Merchant Bank, is among the very few courageous women at the helm of affairs of universal banks in the country. Charles Benoni Okine (CBO) caught up with her to share some perspective about the industry and her progress so far.
Advertisement
CBO: What is your assessment of competition within the banking sector?
NS:We are definitely in a hypercompetitive market as the banking sector currently has 28 banks and the number is increasing. If you compare this to countries like Nigeria that are significantly larger than Ghana in terms of population but have just about 25 banks, it is clear that we are operating in a very competitive market.
As the number of banks continues to grow, we each have to work doubly hard to make sure that our financial product and service offering remains competitive and relevant among so many remarkable industry players. Although we collaborate among ourselves, it is time to either identify new niches in the market where we each can play efficiently and still achieve good growth despite our various individual sizes, otherwise we will need to have or become bigger banks and this could well happen by way of forced mergers and acquisitions.
A welcome for the industry as we would be adequately sized to ensure we can cater for the financial needs of the larger economy with the size of projects that are required to support growth and industrialisation. A situation like this will also make for more efficiency and dynamism.
CBO: How is that shaping your bank?
NS: Innovation ensures we remain relevant to our evolving population, and innovation definitely on the back of technology is what could potentially differentiate you from your competition. How quickly and efficiently this is developed and deployed is ultimately the winning formula. I can tell you that innovation is fundamental to the DNA of the UMB brand and it is reflected in every undertaking that we pursue.
The more we innovate and introduce new products and services, the more we can distinguish ourselves in this competitive market. In keeping with our mission, we can blaze a trail as Ghanaians and also as Africans as we have significant resources to pull together to change how banking is done on this continent.
We recognise that banking is no longer about providing a home for your money and giving you access to it when you need it, nor is it just about being the conduit for financing. It is about being a value-adding partner if you want to stay ahead of the game, and that is how we view ourselves.
CBO: Some banks are proposing a raise in the minimum capital requirement for the banks to pave the way for bigger ones to swallow the smaller ones. What is your take on that?
NS: While the public finance risk profile of larger banks can be a positive reason to do this, we need to be clear on other costs and benefits associated with systemic size i.e. size relative to the national economy.
Let’s look on the broader optimistic side for the country. It could be good in terms of ensuring that the newer larger banks have the muscle to support and can take on the risk associated with the transaction sizes needed in a developing market such as ours.
It could also be good as possibly with the right capital and structure some of our indigenous banks could now look beyond Ghana, thereby growing and taking indigenous brands regionally and internationally. However, we need to be careful we do not create situations that make it a seller’s market from the perspective of the consumers and clients.
We also need to ensure that we do not stifle the growth of smaller local businesses that have a higher risk profile against the larger transactions from lower risk sectors.
CBO: It’s a year since the changeover of ownership of the bank. How has the bank fared so far?
NS: The bank has come a long way and we are excited about the progress that we have made. I believe I can speak for my team when I say we are looking forward to 2015.
The focus of this last year was to restrategise, retool and re-energise. What that meant essentially was a focus on putting in place the right foundation and infrastructure to support the direction of the business we are looking to develop.
We did this amid maintaining and growing our business. Our customers have been loyal and very supportive and the growth that we have seen this year has been phenomenal. No doubt we have had our challenges, but that is normal in the course of any business.
Of course, in keeping with our strategy for 2014, we have leveraged all the opportunities that have presented themselves. With the hard work and dedication of my talented and capable team, we are emerging as a bank that is reborn and committed to achieving continued success.
CBO: How have customers (corporate and retail) received the bank?
NS: Our customers are truly behind the new direction of UMB. The reception has been above our expectations. Several reasons from our perspective: Our platform is customer-centric as represented in our “you first” philosophy. I believe that this resonates with our customers as they understand that we are working hard to provide them with the necessary conveniences and value in the financial products and services that they deserve.
There has been a lot of change and these have all been embraced by our customers as these changes were predicated on our customers and their needs. You will see that after our rebranding, which by the way was done to match the renewed spirit and ethos of the bank, we have tidied our internal processes so these are more customer friendly and generally we are more responsive.
We have also reviewed our products and services and indeed added quite an array of new and relevant products. Finally and equally importantly, we have made ourselves more visible and accessible with an addition of 6 new branches and we have also added over 40 ATMs across the country.
CBO: Which sectors of the economy is your bank most dominant?
NS: We have always been very strong in the corporate banking sector and we continue to build on that expertise with our experienced professionals in our Multinationals, Local Corporates, Financial Institutions, Government Business & Parastatals and Non-Profit Organisations units. We are also growing in the retail sector as we intend to translate the strength of our relationship management excellence to the retail sector.
We have launched many new products that address key financial needs of the retail sector, including our unique Future Generation Accounts, which are savings products segmented for different stages in a child’s life. Our Future Generation Accounts include our ABC Account for newborns to five year olds, Piggy Bank Account for 6-12 year olds, Smart Teen Account for 13-16 year olds and Young Adult Account for 17-19 year olds. We have also created a fantastic student account called the Aspire account that focuses on the financial concerns of tertiary students.
When you look at the sum of our product offering, we have created products that cover the full circle of one’s life from the very beginning with our ABC Account to their golden years with our Silver Saver Account. Our aim is to be more than just a financial institution, but a partner to our customers in their journey of life.
CBO: What should customers of the bank expect next year?
NS: Many new exciting developments from UMB. We are continuing our branch expansion so that we can provide added convenience and value to our customers by having more branches in key locations across Ghana. We are also adding more ATMs to our ATM network to provide customers with 24-hour access to their funds in safe and convenient locations.
Additionally, our product development team is diligently working on several new products that will be launched next year.
CBO: As a woman, how difficult has it been handling such an important position?
NS: Steering the direction of a major financial institution that is undergoing a fundamental cultural and strategic shift is a major challenge for any individual, regardless of gender. Nonetheless, I concede that there could perhaps have been a few minor complexities due to my gender. I see these as I always have, as opportunities to excel.
As an individual, I continue to approach my role focusing on my ability to do the job at hand, rather than focusing on any perceived difficulties that my gender may or may not present. Handling the position therefore has been an interesting and fulfilling challenge on many fronts. Giving all glory to the divine, I am proud if what is perceived as my success as a woman, inspires many more women to reach for the highest and greatest.
CBO: What is your message to your customers during the Yuletide?
NS: I want to wish all Ghanaians a wonderful and very merry Christmas and a very blessed and prosperous New Year. To our customers, UMB is so thankful to all of our customers for choosing us as their bank of choice and we look forward to providing them with continued excellent service in the New Year.
