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The Managing Director/Chief Executive Officer of Wema Bank Plc, Moruf Oseni, recently discussed the bank’s journey and growth as it celebrated its 79th anniversary. In an interview with TEMITOPE AINA, Oseni highlighted Wema Bank’s transformation from a regional bank to a national institution, emphasizing the critical role of technology in delivering optimal banking services.
What has sustained Wema Bank over 79 years in Nigeria?
Resilience, innovation, strong leadership, a dedicated workforce, customer-centricity, and a passion for empowering lives have been the pillars of Wema Bank’s longevity. Our journey started during the first banking boom, a period marked by failures and disruptions in the banking industry. Despite numerous challenges over the decades, Wema Bank has not only survived but thrived, demonstrating resilience and a commitment to innovation. We have evolved from Nigeria’s oldest indigenous bank to its most innovative, driven by a workforce of exceptional experts. Our internal culture, fortified over the years, has enabled us to expand our portfolio, establish powerful partnerships, and build a robust customer base. This unwavering commitment has made us a top-tier institution, continuously striving to exceed expectations.
Impact of ALAT, Nigeria’s first fully digital bank
Wema Bank’s launch of ALAT in 2017 marked a significant milestone. Before ALAT, our identity was primarily tied to being Nigeria’s oldest indigenous bank. ALAT transformed us into a national institution, showcasing our ability to innovate and serve a diverse range of customers across Nigeria. It introduced Wema Bank to the digital and innovation space, providing 24/7 seamless and reliable solutions tailored to the needs of Nigerians and connecting the diaspora to their homeland. ALAT has redefined financial services standards in Nigeria and positioned Wema Bank as a pioneer in the digital era.
Progress towards Tier 1 status
We are well on track to achieving Tier 1 status. Over the past decade, Wema Bank has grown at an impressive rate, transitioning from a regional bank to a leading national financial institution. Our impact is reflected in our numbers: in 2023, we more than doubled our profits and recorded our best financial performance yet. Our customer base, reach, and portfolio are expanding rapidly, demonstrating our capacity to achieve Tier 1 status sooner than expected.
Challenges faced as CEO
The most challenging aspect has been surpassing the high standards set by my predecessors. Having spent years within the bank, I have witnessed our growth and evolution under various leaders. My goal is to raise the bar even higher, driving the bank to achieve more. Our dedicated workforce shares this mindset, and together, we are committed to making Wema Bank even stronger.
Capital raising efforts and the role of technology
Last year, we raised N40bn through a rights issue to existing customers and N21bn in AT1 quasi-equity capital. To meet the N200bn capital requirement set by CBN for banks with national licenses, we are adopting a comprehensive approach, leveraging private placements, rights issues, and public offers. Technology will play a crucial role in our capital-raising efforts. We plan to utilize digital platforms to reach a wider audience, implement digital investor relations tools, and leverage data analytics to identify potential investors and enhance their experience. This approach aims to create value for both the bank and its investors.
Anti-fraud campaign and fraud prevention
Our anti-fraud campaign is designed to combat fraud end-to-end, educating customers on how to avoid scams while rooting out perpetrators. We conduct frequent checks on third-party wallet accounts and have made significant progress, disengaging seven fintech partners found guilty of fraud. Our goal is to ensure a safe banking environment for our customers, and our anti-fraud measures are effectively reducing fraud rates.
Future of Nigeria’s banking sector post-recapitalisation
The CBN’s recapitalisation programme will strengthen the banking sector, fortifying it against inflationary pressures and enhancing financial stability. This initiative will create an advanced banking sector capable of safeguarding shareholder investments and meeting the needs of Nigerians nationwide. I am confident that the sector will emerge stronger from this exercise.
Plans for raising funds on the international capital market
As we aim to become a Tier-1 bank, we are considering various options, including the international capital market. We are committed to exceeding expectations and achieving our goals in the years ahead. Stay tuned for Wema Bank’s continued growth and success.
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