From the beginning of 2019, Access
and Diamond banks have not relented in their efforts of consolidating the
merger deal initiated in 2018. By the mid-2019, the banks are expected to
finalise the deal, which would pave way for many surprises in the banking
industry in Nigeria and Africa as a whole.
During many media and public
engagements in 2018, the two banks assured the customers and other stakeholders
of the deal that would benefit every stakeholder, revealing specific value
customers and shareholders will capture after the consummation of the deal.
As the banks continue
engaging at different levels ahead of the deadline, check has revealed that the
two banks are considering the existing economic of scales, how to improve
management of Diamond bank, complementary resources, business relations
closeness, friendliness of the merger and financial status. These are
imperative towards the creation of values that would retain the stakeholders.
It has reached a stage where
the two banks need to appraise the functions they can perform differently. It
is good that Diamond bank has a strong retail banking channel, while Access
bank possesses a strong culture of risk and capital management expertise with a
clear strategy for sustainable growth. A report indicates that “Access Bank has a strong financial profile
with attractive returns and a robust capital position with 20.1% CAR on 30
September, 2018.” In the same year, “Diamond
Bank profit before tax fell from N4.7 billion in 2017 to N3 billion.”
Analysis suggests that customers
believe that customer services of Diamond bank are better than Access bank. They
doubt the continuation of the existing products and services of Diamond bank by
Access bank after the merger.
This is an indication that
Access bank needs to improve its CRM and value creation process if it’s truly
ready to retain Diamond bank’s 19 million customers and 10 million mobile users.
The narrative that the two banks’ shared focus on innovation, financial
inclusion, and sustainability would bring benefits to customers, staff and
shareholders would be tenable when they are walk through the innovation,
financial and sustainability processes before the deal finalisation.
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