GTBank’s CEO; Segun Agbaje disclosed the Bank’s plan to restructure as a holding company in order for it to take on fintech.
Nigeria’s banking sector being the second-largest in sub-Saharan Africa behind South Africa is one that has experienced a lot of changes and restructurings as different banks progressively leap forward to boost capital level, performance and sustainability.
The Nigerian Banking sector has journeyed from what it used to be with the advent of mobile money and other technological reforms. It can be deduced that the sector is one with much more untapped potentials.
GTBank rather than restructure to proffer more banking solutions is venturing into fintech.
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According to the Seun Agbaje:
About 10 years ago, we made a decision then looking at the operating environment, that we were going to shed all our subsidiaries and become completely bank-focused,
“Everything we have seen over the last 2, 3 years, has told us that it’s time to have a bit of a rethink.”
“Most banks are growing 5% to 7%. We don’t think that’s sustainable.
Seun Agbaje believes despite the encouraging progress the bank has made, there are more untapped potentials for the bank to plunge into.
When you take GTBank, which has one of the best valuations in the banking industry, it is valued at a one-time book,” he said at a recent social media event in Lagos. “Then you come to the payment space where fintechs and payment companies are being valued at 30x earnings. What is there not to like about this space?
He believes that the restructure would expand the bank’s capacity to pursue new profitable horizons beyond just banking operations; this outlook is focused on Fintech.
There are other lines of businesses that are doing very well.
If you look at our financial statement, you will see that our payment business is growing by about 60%. So, that is an area we like.
