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The Managing Director/Chief Executive Officer of Wema Bank Plc, Moruf Oseni, speaks with TEMITOPE AINA on the lender’s journey as it turned 79 years recently. While delving into the journey of the past decade when the bank metamorphosed from a regional bank to a national institution, he highlighted the lender’s use of technology in providing optimum banking services
To have been in existence for 79 years, operating in Nigeria is no mean feat, what do you think has kept the bank going all these decades?
I would say a strategic fusion of resilience, innovation, good leadership, a determined workforce, unrelenting customer-centricity, a passion for empowering lives and a drive to exceed expectations. Our journey dates back to the first banking boom; an era rife with failures and disruption in the banking industry. Despite the challenges faced through the evolving eras of transformation in the banking industry and the business world, Wema Bank survived and is today, thriving, despite all anyone could have expected from an indigenous bank of Wema Bank’s age. Our resilience helped us weather all the storms and today we still stand strong at 79. Our commitment to innovation pushed us to grow from being Nigeria’s oldest indigenous bank to Nigeria’s most resilient bank and today, Nigeria’s most innovative bank. Our passion for customer-centricity has driven us to pioneer a myriad of solutions tailored to the needs of all. However, none of these impressive results would be a reality without our people, and by our people, I mean everyone in Wema Bank’s ecosystem. Our internal culture has, over the years, been fortified with the finest quality of dedicated experts governed by exceptional change-makers who have led us to various victories and great milestones. Through the exceptional contributions of these dedicated employees, we have expanded our portfolios over the decades with innovative solutions, powerful partnerships, extensive reach, profound impact, and the healthy customer base that we boast today. We have become the bank that works for all because we have remained resilient, we have continued to innovate, we have built a strong workforce of outstanding experts dedicated to driving the bank’s goal of providing optimum value for all stakeholders and exceeding all expectations, and we have proved that we are a top-tier institution. We have continued to innovate new and improved ways to thrive and today, we are standing strong. This is how we have done it and by sustaining this winning formula with more intensity, you can rest assured that each new moment will be our strongest.
Wema Bank is home to Nigeria’s first fully digital bank, ALAT, how much impact has the platform had on the bank?
Wema Bank is Nigeria’s oldest indigenous bank, a testament to our resilience and more so, proof of our ability to adapt to changing circumstances, constantly innovating for growth and sustenance. While innovation has played an indispensable role in our 79-year journey, we were nowhere near being called Nigeria’s most innovative bank, until we launched ALAT in 2017. Before ALAT, our identity was tied largely to our heritage – being Nigeria’s oldest indigenous bank. With the birth of ALAT, Wema Bank launched into a new era of multifaceted impact that has today, made us home to millions of Nigerians of different ages and demographics across the different parts of Nigeria. ALAT shook the financial services industry, showcasing Wema Bank in a fresh light, corroborating our status as a national bank fully equipped to serve Nigerians and launching Wema Bank officially into the digital and innovation space – a space which we are currently dominating. ALAT is essentially our breakthrough innovation through which we have changed the narrative for Wema Bank in alignment with our metamorphosis from a regional bank to a national bank and extended our roots beyond traditional banking into the futuristic landscape of the digital world. We have built an ecosystem with ALAT, providing 24/7 seamless, reliable, and convenient solutions tailored to the needs of Nigerians, connecting Nigerians in the diaspora to their home and vice versa; and redefining the standards of financial services in Nigeria; reintroducing Wema Bank as a pioneer across futuristic areas of impact.
At the last anniversary celebration of the bank, you said you were eyeing Tier 1 status in the banking sector, how far have you gone in actualising that vision?
I am proud to confirm that we are right on track, and it’s not rocket science. Over the past decade, Wema Bank has grown at an almost unbelievable rate. During the banking boom and the eras that followed, expectations pointed to the extinction of all indigenous banks, but Wema Bank exceeded all expectations and is thriving today. We survived the advent of the Internet and continued to thrive even when evolving customer needs made it seemingly impossible. A decade ago, we were still a regional bank with limited reach and in just 10 years, we have metamorphosed into a national bank, a leading financial institution and a pioneering enabler in the innovation, tech and digital space, not just creating direct solutions but also empowering lives, businesses, the Fintech industry and other groups with tailored solutions for their success and sustenance. It took us less than a decade to reach the forefront of the banking and financial services industry and because we did not walk alone, we cannot back down. Our exceptional impact is also increasingly reflected in our numbers. With our robust range of banking options, our customer base is fast increasing; our reach is deepening, our portfolio is strengthening, and our financials are growing at an impressive rate. Within just one year – 2023 precisely – we more than doubled our profits and recorded our best financial performance yet, and we’re off to a great start in 2024. The evidence is clear, and the progress speaks volumes. We have been able to sustain our streak of exceeded expectations from as far back as the 1950s to 2024; where we now stand stronger than ever.
Is Tier 1 status so difficult?
Wema Bank is moving at an accelerated pace towards Tier 1 and you may be surprised by how quickly we will get there. Our passion for customer-centricity is necessitating our existence in the lives and businesses of millions. Our partnership portfolio is fast expanding to international levels, and across diverse verticals and areas of impact, we are gaining more and more global recognition. Again, we are well on track.
Wema Bank has seen many MDs before your tenure, what has been the most challenging part of your job thus far?
Honestly, I would say outdoing, the great work that my predecessors have done. Before becoming MD/CEO, I spent years within the bank, seeing first-hand the way we have grown and evolved over the years under different leaders, and in fact, a lot of excellent work has been done. The standards have been set remarkably high and my objective is to not only keep up the momentum but to raise the bar even higher. I wake up daily with the mindset of, ‘How can we achieve more?’ And I am grateful that my fellow knights – the workforce of Wema Bank also share this mindset. It has been a remarkable journey. Wema Bank is working, our workforce is one to be reckoned with, our impact is spreading, and our numbers are growing rapidly. Rest assured; it will only get much better.
The apex bank has asked banks to recapitalise. Before then, Wema Bank had started to raise funds, what ways is the bank set to adopt to raise these funds?
Just last year, we raised N40bn naira through a rights issue to existing customers and N21bn in AT1 quasi-equity capital. Our investors see the strong growth fundamentals, they acknowledge our growth trajectory, and they believe in our passion and capacity to consistently deliver good returns on their investments. We intend to raise the N200bn capital requirement set by CBN for banks with national licences which will allow us to continue operating across all parts of Nigeria. To raise the required capital, the bank is adopting a comprehensive approach by leveraging a combination of private placement, rights issue and public offer.
Technology looks set to play a major role in this current round of capital raise, is Wema Bank looking at incorporating technology or fintechs in its capital raising efforts?
We have in the past decade shown that we are at the forefront in the industry when it comes to technology and innovation. It is at the core of all we do and will definitely serve as a pillar in our capital-raising efforts. Firstly, we will utilise digital platforms to reach a wider audience of potential investors, increasing visibility and attracting more retail and institutional investors than otherwise relying on traditional channels alone. We are also working to implement digital investor relations tools to engage stakeholders in real-time and provide timely and transparent information about the bank and its capital-raising activities. We believe this will particularly be of interest to investors in the diaspora who are seeking investment opportunities in Nigeria. Furthermore, as we do in other areas of our operations, we will leverage data analytics and machine learning algorithms to identify potential investors, personalise marketing campaigns and enhance investor experience. For us, this process is about creating value for both the bank and its investors and yes, technology will play a significant role in achieving this efficiently.
Wema Bank recently launched an anti-fraud campaign to tackle fraudulent inflows into some wallet accounts operated by some of its fintech partners using its third-party wallet accounts. How far has the bank gone in ensuring its platform is free of fraud?
Our robust anti-fraud campaign was launched to combat fraud end-to-end, so, our strategy is to educate our customers and the public on how to avoid falling prey to fraud while also rooting out the perpetrators of these fraudulent activities and reporting them to relevant regulatory bodies. We conduct frequent checks on our third-party wallet accounts and since the launch of this campaign, we have made significant progress. So far, we have identified and disengaged seven fintech partners whose accounts were found guilty of fraud, and we are constantly on the lookout for more. Fraudsters have become afraid to carry out fraudulent accounts using our platforms and banking with us has never been safer for them.
Industry-wide, bank fraud is on the increase, what are some of the ways to curtail this trend?
Again, I’ll reference our anti-fraud campaign because it is working excellently. Combating fraud is a two-way exercise; so, not only do financial service providers need to be more intentional about monitoring account activities to detect fraudulent transactions, but Nigerians also need to be more aware and educated on how to spot fraudulent activities, avoid falling victims and steps to take for escalation. When the fraudsters have nowhere to go and the people are armed with insights to stay steps ahead of these fraudsters, fraud rates will naturally drop. This is our ultimate goal with the Wema Bank Anti-Fraud Campaign.
Nigeria’s banking sector has been described as resilient by Fitch Ratings which also predicted equity issuances as well as mergers as ways banks would use to meet the new CBN capital benchmarks, how well do you think the sector would be by the end of the capital raising exercise?
I believe that the CBN’s move for recapitalisation will not only strengthen the banking sector but also fortify our nation against inflationary pressures. The end product will be an advanced banking sector that is reinforced for financial stability, equipped to safeguard the investments of shareholders, and armed to provide the needs of Nigerians nationwide. The Recapitalisation programme is a step in the right direction, and I am confident that the sector can only come out stronger.
Are there plans to raise funds on the international capital market?
As mentioned previously, we aim to become a Tier-1 bank. We are thus mindful of what that entails. So, the international capital market is certainly an option we will consider, among others. At the risk of building suspense, I’ll urge you to watch and see how Wema Bank will exceed all expectations and goals in the years ahead.
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