Nigerian banks are currently undergoing significant changes to improve their operations, increase profitability, and better position themselves in a highly competitive industry.
Major Nigerian banks, such as First Bank, Sterling Bank, and Zenith Bank, have recently announced significant changes in their name, organizational structure, and operations.
Zenith Bank to Operate as a Financial Holding Company
Zenith Bank has received approval in principle from the Central Bank of Nigeria to restructure and operate as a financial holding company.
This move will enable the bank to change its organizational structure to have a banking subsidiary and other subsidiaries in the financial services sector.
By doing this, Zenith Bank is positioning itself to better serve its customers while also increasing its profitability.
Sterling Bank Transitions to a Holding Company
Sterling Bank is shifting from a financial institution to a holding company, resulting in a significant change in its organizational structure.
The bank plans to delist, transfer and relist all shares to the Sterling Financial Holding Company on the floor of the Nigerian Exchange.
Upon completion of the transition, Sterling Holdings Company will begin operations with two banking subsidiaries, one operating as a conventional commercial bank and the other as the Alternative Bank Limited, which will operate as a non-interest bank.
First Bank Changes Name of African Subsidiaries
First Bank, Nigeria’s oldest bank, has also undergone a corporate name change for its African subsidiaries.
The name change aligns with the subsidiaries of the parent brand and enjoys the strong heritage and brand equity built by FirstBank Nigeria in its 129 years of existence and industry leadership.
The name change affects its operations in several African countries where it has a presence.
Impact on Banks’ Operations and Customers’ Perceptions
Despite having no impact on their core operations and responsibilities, the changes in the banks’ names and organizational structures may affect how customers perceive them.
The banks’ decision to rebrand and reposition is consistent with the ongoing trend in the Nigerian banking industry.
Several banks have recently undergone significant rebranding and repositioning efforts to strengthen their leadership positions in the industry.