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Tag: Zenith Bank

  • Businessman in court over N4.4m fuel fraud

    A 47-year-old businessman, Abdulfatai Adewale, on Friday appeared before an Ikeja Chief Magistrates’ Court over alleged N4.4 million petrol fraud.

    The accused, who lives at Olodi Apapa, Lagos, however, pleaded not guilty.

    The prosecutor, Insp. Simeon Imhonwa, had told the court that the accused obtained N4.4 million from Mr Adeyinka Imam on the pretext of supplying him 33, 000 litres of petrol.

    He said that the fraud occurred in January 2016 in Olodi Apapa.

    “The accused collected the money and promised to supply the goods to the complainant but never did. Rather, he converted the N4.4 million for his own use,’’ he said.

    Imhonwa said that the accused also issued a dud Zenith Bank cheque with number 26430724 to the tune of N4.4million in favour of the complainant.

    “The cheque was dishonoured on presentation due to insufficient funds in the account,” he said.

    Imhonwa said that the accused absconded after committing the fraud but was later apprehended by the police.

    According to the prosecutor, the offences contravene Sections 285, 312 and 319 of the Criminal Law of Lagos State, 2015 (Revised).

    Chief Magistrate B.O. Osunsanmi granted the accused bail in the sum of N400, 000 with two sureties in like sum.

    She said that the sureties must be gainfully employed and show evidence of two years tax payment to the Lagos State Government.

    The case has been adjourned until June 17 for mention.

  • JAMB Registration: Candidates decry stressful, complex process

    JAMB Registration: Candidates decry stressful, complex process

    The prospective 2017 Joint Admission Matriculation Board (JAMB) candidates in Ilorin have decried the rigorous process of registering for the Unified Tertiary Matriculation Examination (UTME).

    The candidates, who were seen in long queues in Banks and registration centres, including JAMB Office, told the News Agency of Nigeria (NAN), in Ilorin on Friday that the registration process was frustrating, stressful and beyond human comprehension.
    A candidate, Biola Adams, told NAN in EcoBank, Ilorin, that he had being queuing under the sun since Wednesday to make payment and acquire pin code.
    “It is becoming unbearable as the process is tough. Every bank in Ilorin here is filled up with JAMB candidates under this hot weather as the process is very slow.
    “Just because we want to write JAMB and we are subjected to this kind of stress. It is unfair on the path of our leaders in this country.
    “They don’t care about the consequence of the stress,” he said.
    Another candidate, Folaranmi Oyekunle, who was in a queue in Zenith Bank at Unity, Ilorin, said she took ill when started the registration process.
    “I have being surviving on drugs as the stress of queuing for long under the sun is affecting me. The banks officials are too sluggish and are taking us for granted,” Oyekunle said.
    Similarly, Azeez Ibrahim, told NAN that he began the registration on Monday and was yet to achieve anything tangible because of the surging crowd at the banks.
    “We don’t know why it is like that this year. The process is too complex and stressful. One of us even collapsed on the queue on Thursday following the unbearable stress,” Ibrahim said.
    An official of Zenith Bank, who pledged anonymous, said the banking hall was congested with JAMB candidates, adding that it was not good for the security of the bank.
    “It is dangerous for the Bank to be filled up with this uncontrollable number of people queuing up inside and outside the bank.
    “I even pity their situations as the weather is too hot for young people to stand in it for hours,” the official said.

    JAMB staff in Ilorin, who pleaded anonymity, appealed to students to bear with the organisation and endure for a time being, adding that success doesn’t come easy.

    He said Jamb offices and banks are working hard to speed up the registration process in order to reduce the stress students are passing through at the moment.

    “JAMB wants a perfect and authentic registration this year. We don’t want any dubious registration. We are sorry for the inconveniences,” he pleaded.

     

  • Why Zenith Bank suspended IPO

    Why Zenith Bank suspended IPO

    Most deposit money banks are anxious to place initial public offer (IPO) to raise fresh capital injection into the system. This is justifiably so considering the credit crunch which is assailing most sectors of the economy, including banks.

    Like most banks, Zenith Bank had initially announced plans to raise N100 billion fresh funds. But the management soon made a volte-face at its 26th Annual General Meeting (AGM) held in Lagos thus aborting the plan at the meeting.

    Expectedly, shareholders of the bank approved the request of the board to step down the plan to raise fresh capital.

    Justifying the suspension of the plan, Chairman of the bank, Mr. Jim Ovia, at the meeting said the bank decided to suspend the idea because of macro-economic challenges in the country and also that the time was not right for such scheme.

    The bank had expected market conditions to improve when it announced plans to seek approval for the funds last month, said Zenith’s Head of Investor Relations, Michael Anyimah, but the lender cancelled them due to the struggling economy.

    In its annual report, the bank said: “That the directors be and are hereby authorised to raise, whether by way of a public offering, rights issue or any other method(s) they deem fit, additional capital of up to N100 billion or its equivalent whether locally or internationally or a combination of both, through the issuance of shares, convertible securities or non-convertible securities, global depository receipts, medium term notes, loan notes, bonds and or any other instrument(s).

    “Whether as a standalone transaction or by way of a programme; unlisted or listed locally or internationally in such tranches, series or proportions, at such coupon or interest rates, within such maturity periods, at such dates and time and on such terms and conditions, including through a book building process or other processes all of which shall be determined by the Directors; subject to obtaining the approvals of relevant regulatory authorities.”

    During the year, the bank said it incurred some contraventions of the regulation of the Banks and Other Financial Institutions Act, 1991. In all, the bank paid a total of N16 billion as penalties for contraventions in the year under review.

    These include N2 billion penalty on returns of foreign currency transactions, N4 billion as penalty for contravening DMO Act of 2003 on lending to tiers of government and N10 billion as penalty for incomplete customers’ documentation.

    There were mixed reactions among shareholders of the bank on the decision not to go ahead with the offer.

    A shareholder activist and Chairman of the Progressive Shareholders Association of Nigeria, Boniface Okezie, said there was no crime in the decision of the bank to stand down its decision to raise the fund, as he added that it is better  that the bank did not go for it than for it to end in a disaster.

    “I think the decision of the bank should be respected. It is better that it did not go ahead with the offer than to lose out at the end. A bank like Zenith Bank cannot afford to fail at this time because they are the leader in the sector as of today. I will not dwell too much on the issue because it is both safe for the bank and the shareholders,” Okezie said.

    Meanwhile Shareholders of Zenith Bank Plc are smiling to the banks has the bank  approved final dividend of N55.573 billion, bringing the total dividend for the year ended December 31, 2016 to N63.422 billion. Lagos.

    While approving the dividend, the shareholders commended the board, management and staff for growing its profit after tax by 23 per cent from N105.531 billion in 2015 to N129.65 billion in 2016. The bank ended the year with gross total assets N4.739 trillion, up from N4 trillion in 2015.

    Addressing the shareholders, Ovia said despite the challenging operating environment, the bank was able to fully exploit the available opportunities to post the impressive results.

    According to him, in line with its commitment to delivering superior returns to its much-valued shareholders, the bank ensured that a good chunk of the profit is set aside for them.

    “In this regard, we have declared and paid you an interim dividend of 25 kobo per share in the course of 2016 financial year. We hereby propose a final dividend of 177 kobo per share. This brings the total dividend for the year ended December 31, 2016 to 202 kobo per share as against 180 kobo per share paid the previous year,” Ovia said.

    He stated that even in the face of a very challenging operating environment, Zenith Bank has maintained its culture of outstanding performance and industry leadership.

    “As a bank, we are monitoring developments both in the local and global economy and applying pragmatism and dynamism as appropriate. Our strategy and approach to the pursuit of financial inclusion and sustainability gives us a lot of competitive advantage to explore even new frontiers in the market,” he said.

    Echoing similar sentiments, Group Managing Director/Chief Executive Officer of Zenith Bank, Mr. Peter Amangbo said as an institution of well-primed people, the bank relied on a its pool of exceptional staff to make sound and timely decision and addressed issues in a manner that anticipated developments and demonstrated excellent understanding of the dynamics of the market and economy in 2016.

    He assured that “We shall continue to demonstrate extraordinary commitment to our customers while maintaining focus on all the areas fundamental to adding value to our partnership.”

    Looking ahead, he said although 2017 will come with its challenges, and opportunities, “but I am confident that our determination, resolve and rare commitment to customer s well as our adaptive ability will ensure resounding results.”

  • Market operators urge CBN to reduce interest rates to accelerate growth

    Market operators urge CBN to reduce interest rates to accelerate growth

    Some capital market operators on Monday advised the Central Bank of Nigeria (CBN) and Debt Management Office (DMO) to reduce yield rates on Treasury Bills (TBs) and bonds to accelerate economic growth.

    They told the News Agency of Nigeria (NAN) in Lagos that the two agencies should bring down TB and bonds yield rates to encourage banks to lend to the real sector.

    Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd. in Lagos, said commercial banks had abandoned their core banking duties to seek haven in bonds and TBs due to their high yield rates as high as 18 per cent.

    Kurfi said that banks should be compelled to lend to the manufacturing sector to accelerate economic growth by reducing the bonds and TB yield rates.

    According to him, interest accruable to these instruments should be reviewed down to 13.01 per cent as it is the case with the Federal Government savings bonds that closed on March 17.

    Kurfi also urged the apex bank to pursue positive economic policies that would sustain the current gains in the foreign exchange market and inflation rate.

    He suggested that the Monetary Policy Rate (MPR) should be lowered to 13 per cent in the near future with the appreciation of the naira and further drop in inflation rate in view.

    Kurfi expressed optimism that stock market activities would close on the upbeat this week with investors’ anticipation of positive 2016 earnings from commercial banks.

    He said that more banks were expected to release their results this week to beat March 31 deadline stipulated by the Nigerian Stock Exchange (NSE) for companies whose financial year ended on Dec. 31.

    NAN reports that only three banks namely – Zenith Bank, Access Bank and Guaranty Trust Bank-  have released their 2016 audited results so far.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., advised policy makers to embrace friendlier policies to sustain economic growth.

    Omordion said that transaction of the NSE would likely oscillate this week due to profit booking and reactions to expected good earnings as more financial results were expected in the market.

    He urged investors to combine technical and fundamental analyses in trading decisions to know the support and resistance levels.

    NAN reports that a turnover of 1.03 billion shares worth N7.98 billion were exchanged by investors in 13,441 deals on the NSE last week against 1.02 billion shares valued at N12.46 billion `traded in 16,400 deals in the preceding week.

    The Financial Services Industry led the activity chart with 853.41 million shares worth N4.27 billion in 7,904 deals, thus contributing 82.91 per cent and 53.50 per cent to the total equity turnover volume and value terms, respectively.

    The Oil and Gas Industry followed with 80.25 million shares valued at N1.15 billion traded in 1,443 deals.

    The third place was occupied by Conglomerates sector with turnover of 45.77 million shares worth N83.47 million achieved in 596 deals.

    The NSE All-Share Index appreciated by 415.15 points or 1.64 per cent to close at 25,653.16 against 25,238.01 achieved in the preceding week.

    The market capitalisation, which opened at N8.734 trillion, appreciated by N144 billion or 1.64 per cent to close at N8.878 trillion

  • Delta govt paid N24million into Justice Ajumogobia in 2011 – Witness

    Delta govt paid N24million into Justice Ajumogobia in 2011 – Witness

    An Ikeja high court heard Friday that the Delta State Government credited the current bank account of Justice Rita Ofili-Ajumogobia twice in August 2011 to the tune of N24 miilion.

    A former customer relations officer with Access Bank Plc, Clement Okaranwolu who disclosed this at resumed proceedings before Justice Hakeem Oshodi said on Friday that the state credited the judge’s account with N15million on August 5, 2011and with N9million on August 29, 2011.

    Okaranwolu, who said he was the account officer to the judge, further stated that N15million was paid into the account with an Oceanic Bank cheque while the N9million was lodged in with a Zenith Bank cheque.

    Justice Ofili-Ajumogobia, a serving judge of the Federal High Court, is facing a 30 count charge offence before the court for alleged bribery and unlawful enrichment alongside a Senior Advocate of Nigeria (SAN), Chief Godwin Obla.

    The Economic and Financial Crimes Commission (EFCC) had accused the judge of receiving a total of $793,800 in several tranches from different sources between 2012 and 2015 “so as to have a significant increase in your assets that you cannot reasonably explain the increase in relation to your lawful income.”

    Led in evidence by the EFCC prosecutor, Rotimi Oyedepo Okaranwolu is the fourth prosecution witness told the court that apart from the naira account, the judge also owned two dollars accounts into which lodgments were constantly made by herself and other individuals.

    The witness said one Ken Mozia paid in $20,000 on May 7, 2008 into the judge’s domiciliary account, numbered 0002130929; Tony Iwobi, who paid $10,000 into the account on April 16, 2008; Ali D, who paid in $10,000 on June 16, 2007;  Subedetu, who paid in $3,000 on April 12, 2011; and AB/GT which paid in $9,900 on April 30, 2013.

    The witness, who was presented with the judge’s statements of accounts, also pointed out to the court several $10,000 lodgments which Justice Ofili-Ajumogobia made by herself and by sending others, including the witness himself and one Donald Ofili adding that $10,000 was the maximum daily deposit allowed.

    He said that the two dollar accounts received a total credit of $693,000 deposited by the judge and other individuals between 2007 and 2011.

    The witness also pointed out names of individuals who credited the judge’s account to include one Ayegba Abdullahi who credited the account with N1million on August 17, 2011; Mrs. Bola Latinwo who paid N700,000 and N500,000 into the account on October 5 and November 20, 2011 respectively.

    Justice Oshodi has adjourned further proceedings in the matter till April 28, 2017.

     

  • Etisalat Nigeria dispels rumor on takeover by Banks

    Etisalat Nigeria dispels rumor on takeover by Banks

    The Head of Public Relations, Etisalat Nigeria, Ms Oluseyi Osuntedo, on Thursday dispelled the rumor that banks had taken over the company.

    Osuntedo told the News Agency of Nigeria (NAN) in Lagos that talks were still ongoing between the banks and the company.

    She said that the company was not being picketed as rumored by some people, adding that whoever was giving the information was not telling the truth.

    “Discussions are going on; nobody is taking up the company.

    “It is not true that we are being picketed, whoever gave the information is not telling the truth,” she said.

    A NAN correspondent who visited the company’s Head Office at Banana Island also confirmed that the scenario at the office was calm and business going on as usual.

    NAN reports that Etisalat on March 8 was reported to have been taken over by three banks because of their alleged N541.8 billion debt.

    Despite the intervention of the Nigerian Communications Commission (NCC) to broker a peaceful resolution between Etisalat Nigeria and a consortium of banks, it appears the effort may not have yielded a truce.

    It said that the consortium of some foreign and Nigerian banks, including Guaranty Trust Bank, Access Bank and Zenith Bank, have been having a running battle with the mobile telephone operator, over a loan facility totaling $1.72 billion (about N541.8 billion) obtained in 2015.

    NAN reports that the loan, which involved a foreign-backed guaranty bond, was for Etisalat to finance major network rehabilitation and the expansion of its operational base in Nigeria.

    However, Etisalat failed to meet its debt servicing schedule, agreed since 2016, for which they were reported to the banking sector regulator, the Central Bank of Nigeria, and its communications sector counterpart, the NCC.

    Etisalat was said to have blamed its inability to fulfil its obligation to the banks on the current economic recession in Nigeria.

    The banks said their attempt to recover the loan by all means, was fueled by the pressure from the Asset Management Company of Nigeria (AMCON), demanding an immediate cut down on the rate of their non-performing loans.
    .
    NAN also reports that NCC appears not to be favorably disposed to the takeover proposal, as it believed that Etisalat is not only a viable going concern, but also willing and able to negotiate the servicing of its loans.

    Etisalat is Nigeria’s fourth largest telecoms operator, with about 21 million subscribers as at January 2017, according to the NCC.

    The company commenced business in Nigeria in 2009.

     

  • GTB, Access Bank, Zenith Bank’s directors meet over dividend payment

    The boards of directors of Guaranty Trust Bank (GTB) Plc, Access Bank Plc and Zenith Bank Plc have scheduled meetings later this month to approve the audited financial statement and accounts of the banks for the year ended December 31, 2016. The meetings will among others consider final dividend recommendation to be made to shareholders.

    In separate regulatory filing, the three banks indicated that their directors would be meeting to review and approve the earnings report and accounts for the 2016 business year, preparatory to sending the accounts for the clearance of the Central Bank of Nigeria (CBN) before release to the investing public at the Nigerian Stock Exchange (NSE).

    Under the enhanced listing rules at the NSE which took off on January 1, 2017, quoted companies are expected to submit their annual audited account to the Exchange not later than 90 calendar days after the relevant year end, and published same in at least two national daily newspapers not later than 21 calendar days before the date of the annual general meeting. They are also required to post same on their websites with the web address disclosed in the newspaper publications. Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the publication.

    The three leading banks had paid interim dividend of 25 kobo to shareholders based on their half-year results. The share prices of the three banks rose at the weekend at the NSE as expectant investors sought to take positions ahead of the meetings and announcement of the final dividends by the banks. GTB’s share price rose by 7.0 kobo to close weekend at N23.54. Access Bank added 14 kobo to close at N6.28 per share while Zenith Bank’s share price rose by 27 kobo to N14.77 per share.

    Key extracts of the interim report and accounts of GTB for the nine-month period ended September 30, 2016 had shown that gross earnings rose by 43.6 per cent to N329.28 billion by September 2016 as against N229.37 billion in comparable period of 2015. Operating income rose by 59.3 per cent from N174.42 billion to N277.85 billion. Profit before tax grew by 53 per cent to N140.84 billion as against N92.06 billion while profit after rose by 59.6 per cent from N75.16 billion in September 2015 to N119.93 billion in September 2016. Earnings per share closed September 2016 at N4.24 as against N2.65 in September 2015.

    Also, key extracts of the nine-month report of Access Bank for the period ended September 30, 2016 released at the weekend showed that profit before tax rose by 19 per cent to N72 billion in third quarter 2016 as against N60.4 billion in comparable period of 2015. Also, net profit after tax rose by the same margin from N48.1 billion in third quarter 2015 to N57.1 billion in third quarter 2016. Gross earnings had risen from N257.6 billion to N274.5 billion. The growth in gross earnings was driven by 17 per cent increase in interest income on the back of continued growth in the Bank’s core business. Operating income rose to N199.3 billion in third quarter 2016 as against N178.1 billion in corresponding period of 2015.

    Access Bank also improved on the supporting balance sheet for its business. Customer deposits also grew by 25 per cent to N2.1 trillion by September 2016 as against N1.68 trillion recorded at the beginning of the year. The capital adequacy ratio (CAR) of the bank stood at 19 per cent as at September 2016, well above the regulatory minimum. The bank’s asset quality ratios remained well above the regulatory benchmark of 5.0 per cent as the percentage of Non-Performing Loans (NPL) to total gross loans stood at 2.1 per cent. The NPL coverage ratio also remained strong at 209.5 per cent.

  • Zenith Bank records N121b profit in Q3

    Zenith Bank Plc grew its top-line and bottom-line in the third quarter as the bank’s pre-tax profit rose by 16.6 per cent to N121.3 billion within the nine-month period. Zenith Bank’s share price rose by 25 kobo to N15 at the Nigerian Stock Exchange (NSE).

    Key extracts of the nine-month results for the period ended September 30, 2016 released yesterday at the NSE showed that gross earnings rose by about 13 per cent while pre and post tax profits rose by 16.6 per cent and 20.4 per cent respectively. The balance sheet of the bank also appeared stronger with total assets rising to N4.65 trillion.

    Gross earnings rose by 12.9 per cent from N337.9 billion in third quarter 2015 to N380.4 billion in third quarter 2016. Net interest income had grown by 17.6 per cent from N161.4 billion in 2015 to N189.8 billion in 2016. Profit before tax rose from N104 billion in September 2015 to N121.2 billion in September 2016. After taxes, net profit grew by 20.4 per cent to N100 billion as against N83 billion recorded in comparable period of 2015. Earnings per share rose from N2.64 to N3.18.

    Against the audited position by the 2015 year-end, the bank’s balance sheet has grown over the past nine months. Total assets rose to N4.654 trillion by September 2016 as against N4.0 trillion recorded by the year ended December 31, 2015. Deposits rose from N2.557 trillion in December 2015 to N2.692 trillion by September 2016. Loans and advances grew from N1.841 trillion to N2.425 trillion.

    Market analysts generally commended the performance of the bank, noting that the results were above market estimates. Analysts at FBN Capital said the nine-month profit before tax of N121 billion indicates possibility that the bank will surpass the N123 billion projection made by the management for the full year ending December 31, 2016.

    “On the back of these results, we would expect consensus profit before tax for 2016 to move up strongly, from N123 billion currently, given that the nine months result is N121 billion,” FBN Capital stated.

    Analysts however noted that operating expenses and interest expense figures were disappointing and could draw some scrutiny from the market.

    Analysts at Exotix Partners said they would retain their buy recommendation with a target price of N27 on the bank given the performance in the third quarter. This indicates that the bank’s share price could still rise by about 80 per cent on its opening price today.

    “The bank’s headline earnings per share and profitability are trending significantly ahead of our estimates. However, that is being driven by the significant revaluation gains, the source and sustainability of which remains unclear to us. We are also disappointed by the bank’s shrinking deposit base in real terms and declining margins – we think many investors will start questioning the bank’s traditional investment profile of being able to generate significant returns in a high interest rate environment by virtue of its ability to mobilise low-cost deposits. The bank’s unwillingness to build non-performing loans cover ahead of potential asset quality deterioration also disappoints,” Exotix stated.

    Exotix stated that it remains buyer of Zenith Bank’s shares, although the investment profile is not as strong as it used to be.

  • Fayose’s accounts remain frozen till November 7

    Fayose’s accounts remain frozen till November 7

    The two private accounts of Governor Ayo Fayose of Ekiti in Zenith Bank will remain frozen until November 7.

    This followed the adjournment till Nov. 7 of the suit in which the governor sued the EFCC for freezing his accounts.

    At Friday’s hearing, Fayose’s lead counsel, Chief Mike Ozehkome, and that of the EFCC agreed on the adjournment date.

    The News Agency of Nigeria (NAN) reports that the accounts had been frozen since June by the EFCC.

    At the resumed hearing, Ozehkome, who led 10 other lawyers, argued that the EFCC lacked the constitutional powers to so apply punitive measures on a governor that still enjoyed immunity until the end of his tenure in 2018.

    He argued that the freezing of the governor’s accounts based on mere hearsay and unsubstantiated allegations of fraud lacked the backing of the law.

    The counsel said only a declarative evidence of court of competent jurisdiction could act in the way of EFCC.

    He said blocking the governor’s accounts without being found guilty by a court amounted to convicting the governor before putting him on trial.

    The counsel said the exparte order which the EFCC claimed to be relying upon in blocking Fayose’s two accounts had been grossly abused, adding that such an order was not expected to last longer than few weeks.

    “My Lord, my client’s accounts were frozen in June and we are now in September, making a total of four months altogether.

    “As far as we know, the principle of exparte order which is meant to last for a while has been grossly abused here.

    “This is because as you can see, my client has been unjustly subjected to both psychological and mental torture, as if to say judgment must come before trial,’’ he said.

    He demanded that a sum of N5 billion be paid by the EFCC to the governor as aggravated damages.

    The counsel also asked the court to vacate an earlier order of a similar court which empowered the anti-graft body to block the governor’s accounts.

    But EFCC lead counsel, Rotimi Oyedepo, insisted that the decision of the anti- graft agency to freeze Fayose’s accounts followed due process.

    He pleaded with the court to give him enough time to study the counter argument of Fayose’s lead counsel which was presented to the court for more than three hours.

    Justice Taiwo consequently adjourned ruling in the case till November 7.

  • Zenith Bank drives mobile banking with technology

    Zenith Bank drives mobile banking with technology

    Zenith Bank Plc is one of the banks that see mobile banking as a viable means of meeting customers’ needs and creating seamless transactions. Its Eazybanking platform and other products have been developed to take banking to more people across variuos market segments in support of the Central Bank of Nigeria’s (CBN’s) cashless policy and enhance financial inclusion, writes SIMEON EBULU.

    At Zenith Bank Plc, developing the right e-payment products and services remain a priority. The lender knows that e-payment is where the future lies and is committed to new product development to ensure that banking needs of its customers are met.

    Zenith Bank is aware of the latest worldwide market study by Juniper Research, which showed that one billion people globally, or one in seven people on the planet, had used their phones to perform at least, one banking transaction as at the end of last year.

    The research authority projects the figure to grow to two billion by 2020, representing 37 per cent of the global adult population. As internet penetration continues to deepen in Africa, the use of mobile phones as the new and preferred banking channel is expected to take the centre-stage.

    Already, almost all banks in the leading countries on the continent have published mobile apps that enable a myriad of transactions such as bills payment, funds transfers, travel bookings and lots more.

    In Nigeria, banks have taken it a bit further by unveiling USSD banking (Unstructured Supplementary Service Data) to ensure that the populace that presently do not own smart phones are not cut off and suffer financial exclusion.

    The USSD is a Global System for Mobile (GSM) communication technology used to send texts between a mobile phone and an application program in the owner network.

    Zenith Bank Plc is a major promoter of this channel, with the bank betting that its *966#USSD banking solution will help drive the nation’s financial integration programme being championed by the Central Bank of Nigeria (CBN).

    Zenith Bank’s *966# USSD banking solution is themed the ‘Easy Way to Bank’ and the solution embodies every word in that statement by enabling people perform financial transactions on all known mobile phones (Feature, Smartlite or Smart), without having to go on the Net or download a mobile app. A statement from the bank explained that to open a Zenith Bank account, people only need to dial *966*0# and follow the prompts.

    “An account number is automatically generated for the customer and they can start running the account after a short visit to any of the bank’s branches. To perform transactions with the solution, the bank’s customers are required to perform a one-time registration by dialing *966*00# and following the prompts,” it said.

    After registering, customers can easily carry out a myriad of banking activities 24/7, such as account balance enquiries; airtime purchase, funds transfer among others. The transactions can only be performed from the phone number registered against a customer’s account with Zenith Bank and require a four-digit Personal Identification Number for transaction authentication.

     Eazybanking

    Interestingly,  Eazybanking by Zenith Bank is a convenient, fast, secure, and affordable way to access one’s bank account 24 hours a day, seven days a week through the mobile phone without internet connectivity. It is a session- oriented service unlike SMS which is a store and forward based service. This service is available to all individual account holders (except ZECA and Premium account holders) with any phone that runs on the GSM platform.

    According to the bank, Eazybanking is different from other technologies as it provides an interactive browsing experience, its available on all GSM handsets, it has an in built USSD encryption and “no store just forward” facility for performing secure transactions and ensures faster service, as network latency is low.

    In terms of security, Eazybanking platform is very safe as it has various levels of authorisation that ensures that one’s banking transactions and information remains private. Verification using Debit card (MasterCard, Visa and Verve) PAN and PIN to authorise transaction and BVN. The  service can only be accessed from the number registered with the bank for transactions notification (Alertz).

    The product is available to all Zenith bank individual customers. Target customers are low income earners with non- feature phones who should have a Zenith Bank account, GSM phone and alertz number. The customer is expected to simply dial *966*00# with one’s Alert Z number.

    This will be subsequently followed by the four digits of your debit card number. Then the next page will display customer account name and will be prompted to create a four digit PIN, which will be confirmed.

    The product has a cumulative transfer limit of N100,000 daily and cumulative transaction limit on airtime top-up is N3, 000.00.  Balance enquiry, funds transfer, airtime top up, bills payment and account opening are some of the functions performed through the platform.

    Equally, for balance enquiry, customers are to dial   *966*00# with the short code sent using the alertZ number which must be a GSM phone. For first time service, you will be prompted to register by entering the last four digits of your Debit Card (MasterCard or Visa) or Bank Verification Number, create four digit PIN, confirm PIN. You will see a message “Retrieving balance. You will receive an SMS shortly. The customer then gets an SMS with balances on his account,” the bank said.

    The lender also explained that during transfers, customers are to dial *966*amount*account number#. “Then select beneficiary bank by entering the corresponding number, followed by a confirmation page will be displayed showing beneficiary name, bank and the amount. You will be prompted to enter your 4 digit PIN. If successful, the following message will be displayed “You have successfully transferred “amount” to “beneficiary account no”. Your new balance is “amount,” it said.

    For airtime top up, the customer dials *966*amount*mobile number#, which is followed by selecting a network to which the number belongs by entering the corresponding number. After selection, a confirmation page will be displayed showing mobile number and the amount. Enter your four digit PIN to confirm. If successful, the following message will be displayed: You have successfully purchased airtime of “amount” for “mobile number”

    During account opening, the customer is to dial *966*0#. “You will be asked for your first and last name, create four digit PIN, confirm PIN. If successful, you will get a message thanking you for choosing Zenith bank. An SMS will be sent immediately with your new account number,” it added.

      Mobile banking dynamics

    Zenith Bank Plc launched the *966# Eazybanking solution, into the Nigerian market to enable it complement the CBN’s effort to build a cashless economy and enhance financial inclusion.

    The USSD banking solution enables people to perform financial transactions on all known mobile phones (Feature, Smartlite or Smart), without having to go on the net or download a mobile app.

    The lender said the simple solution allows mobile phone users buy airtime, transfer money, pay bills, check their account balance and even open a Zenith Bank account, anytime and anywhere.

    It positions the bank for future growth as internet penetration continues to deepen in Africa and the use of mobile phones becomes the new and preferred banking channel.

    The USSD banking solution will complement the Zenith Mobile Banking application, already well accepted among its discerning customers. “Customers register by dialing *966# from their registered mobile numbers and following a simple set-up as prompted by a string of instructions after which they can easily carry out banking activities anytime, anywhere, from the comfort of their mobile phones,” it said.

    To open a Zenith Bank account, potential customers are required to dial *966*0# and follow the prompts, following which an account number is automatically generated for the customer and they can start running the account after a short visit to any of the bank’s branches.

    The introduction of this banking solution will further enhance the lender’s reputation and excite its stakeholders. The commitment that Zenith Banking brings to electronic payment has earned it several awards from the stakeholders who continue to see the lender as a leader in the e-payment space.

     CBN’s endorsement

    Zenith Bank Plc, established in May 1990, is today recognised as one of the most innovative financial institutions in the country.

    Speaking at the maiden edition of the Electronic Payment Financial Incentives Scheme (EFIS) Efficiency Award, the CBN Deputy Governor, Operations, Suleiman Barau, said mobile money is where the future of banking lies. He praised the performance of Zenith Bank Plc at the award, adding that the lender has done exceptionally well in the e-payment space.  Zenith Bank won in the Cashless Bulk Payment Award and Point of Sale (PoS) Transaction Acquirer categories among others.