The Central Bank of Nigeria
(CBN) has approved the change in the licence of Diamond Bank Plc from an
international bank to a national bank with immediate effect. The approval is,
however, subject to the conclusion of the sale of Diamond Bank United Kingdom.
The move follows Diamond Bank’s
decision to sell its international operations, which included the disposal of
its West African Subsidiary in 2017 and Diamond Bank UK, the sale of which is
in its final stages. With this approval, the bank will cease to operate as an
international bank.
Diamond Bank at the weekend
indicated that the re-licensing as a national bank supports its objective of
streamlining its operations to focus resources on the significant opportunities
in the Nigerian retail banking market, and economy as a whole.
According to the bank, the
change to national bank status also enables the bank to maintain a lower
minimum capital requirement of 10 per cent as against 15 per cent required for
international banks. This creates room for the bank to deploy more capital for
stronger growth in the quarters ahead through additional investment in
technology platforms, customer acquisition and expansion of loans to the
critical sectors of the economy.
The bank’s Chief Executive
Officer, Mr. Uzoma Dozie said the move to a national banking license marks a
continuation of the bank’s strategy to focus on Nigeria’s significant
fundamental trends, including a large underbanked population and Africa’s
biggest economy.
According to him, by focusing
and optimising its resources towards Nigeria and the priority area of retail
banking, the bank will be better positioned for longer term growth and greater
profitability.
“The reduction in minimum
capital requirement also increases our capacity to expand the quantum of business
and product services we can offer consumers, as well as representing a key step
in strengthening our financial position,” Dozie said.
He noted that this development,
however, does not affect the bank’s ability to offer services to its clients in
international locations.
According to the bank, with
focus on its domestic business being priority, the bank also intends to pay
down in full, the Eurobond loan of $200 million at maturity in May 2019. There
will be no refinancing of the loan as the intent to pay down with foreign
exchange generated from its internal operations, a reflection of the solidity
of its operations and funds flow in the last few years
The bank pointed out that top
quality services to international customers will continue through its digital
channels and network of correspondence banks.
Meanwhile, Diamond Bank has
formally introduced its premium lifestyle subscription service, XclusivePlus,
for its affluent banking customers.
Speaking on the product, Head,
Consumer Banking, Diamond Bank Plc, Kari Tukur, said the bank has seen a rise
in customer spend in the past few years for luxury travel, luxury experiences
and luxury products among the emerging affluent client segment.
She said the new product is well
positioned to further enhance customers’ lifestyles and provide them with the
most satisfying rewards.
According to her, XclusivePlus
membership comes with an automatic card upgrade to the Diamond Visa signature
naira debit card.
“Diamond Bank is the first bank
in Nigeria to go to market with this card. This is a naira card with higher
spend limits and enabled for international spend. With this card, our customer
will enjoy lots of world class travel and lifestyle benefits such as free
access to over 800 Premium airport lounges globally, great discounts and VIP
treatment at luxury hotels around the world, free travel insurance cover for
them and their family for medical emergencies, lost luggage, flight
cancellation and much more anytime they travel. This insurance is also valid
for foreign visa applications,” Tukur said.
She added that there are also
benefits closer to home, including free cinema tickets all year around for the
movie lovers, free premium events tickets such as concerts, comedy shows and
art exhibitions and lots of great offers and discounts from a wide range of
merchants across the country ranging from restaurants, bars, hotels, shopping
and much more
XclusivePlus subscribers are
also invited to various seminars, conferences and round table discussions
covering a wide range of topics such as wealth management & investment,
economic outlook, financial planning, assess to finance and lots more. These
events will give them the opportunity to acquire knowledge from industry
experts and network with like minds.
“With the XclusivePlus, Diamond
Bank is always available to the customer wherever and whenever you need us
through the mobile app. With over three million users, the mobile app is loaded
with exciting features such as local and foreign currency transfers, bill
payments, airtime top-up, esusu, events and movie tickets purchase,” Tukur
said.
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