Slow but assuredly, Polaris Bank has continued to confound bookmakers and analysts in its short but eventful existence in Nigeria’s banking space.
When Polaris Bank was created in September 2018, the banking industry did not expect much in terms of performance from the management of the Bank, given its historical challenges. The most optimistic view then was that the CBN-appointed management team, led by Tokunbo Abiru, would stabilize the bank.
Polaris Bank has, however, defied these challenges and skepticism by posting a very profitable financial performance at the end of its first full year of operations, which ended December 31st 2019. According to the audited financial results of the bank for the period, the bank recorded Profit Before Tax (PBT) of N27.342 billion.
The bank achieved customers’ deposit of N857 billion and total assets in excess of N1.4 trillion. The above indices, in addition to capital of N82.9 billion, is well above the regulatory minimum of N25 billion.
Beyond the Steller financial performance the bank recorded in its first year of operation, the Bank has also made immense impact on Nigerians as it continues to churn out innovative products that respond to the needs of the average Nigerian. Two of these life-impacting products are: The Polaris Bank Agency Banking called the SurePadi, and the fast lending facility, called Polaris Salary Advance.
Polaris Bank’s Agency Banking initiative, SurePadi, has, within a short period of time, serviced over half a million customers, impacting directly an estimated two million households nationwide since its introduction. Beyond the direct impact on customers and households in Nigeria, the sheer volume and value in financial numbers on the gross earnings of the bank has been significant as the service recorded giant strides in the number of services and transaction volumes it processed, which was valued N10 billion within 100 days of operations.
The Chief Digital Officer (CDO) of the Bank, Mr. Dele Adeyinka, disclosed recently that in the first 100 days of introducing SurePadi, the Bank carried out, through its network of Agents across the country, more than 500,000 services, and transaction volume above N10 billion, directly servicing over two million households, giving them easy access to cash for businesses and family needs.
Consequently, following this milestone, SurePadi was ranked fifth in the first quarter of 2020 by the Shared Agent Network Expansion Facility (SANEF) report -an indication that it is bridging the gap and helping people to meet their needs of accessing funds; as well as sending money to their loved ones.
SurePadi is also helping Polaris Bank’s ongoing effort to drive financial inclusion among the under-banked and unbanked in line with the Central Bank of Nigeria’s (CBN) regulatory mandate
Another transformational product that has strong impact on the general public is Polaris Bank pay Day loan called Salary Advance product.
In a strong showing that defy what obtains in the banking industry, the Pay Day loan changes recorded huge milestones. In a space of four months of its introduction, the Bank had reportedly disbursed more than N1 billion to customers and is said to be unrelenting as it has continued to disburse more funds to customers and prospects. Polaris Salary Advance enables employees to get up to 50 per cent of their net monthly salary to meet basic needs before the next pay day.
The service, which is available on all telecommunication networks, has helped many families secure short-term finance to meet their urgent needs, which otherwise would have left them vulnerable. Polaris Salary Advance service could be accessed via mobile phones by dialing *833*12# smart code. Polaris Bank also offers array of products such as auto loans, mortgages, holiday loan, rent loan, etc.
Transformation for a greater future
Corporate Transformation Plan implemented by the Tokunbo Abiru-led management:
Driven by the focus to build the foundations of a bank for the future, as well as the conviction that the future of banking would be shaped by technology, with banks significantly dependent on technology for mobilising savings, extending and administering loans, payments analytics and management decision making, the Tokunbo Abiru led management commenced the implementation of a strategically crafted Corporate Transformation Plan to position the bank for retail banking dominance through digital technology. This led to the adoption of a predominantly retail market focus in line with the strengths and competencies of the bank.
The transformation plan also defined new customer value propositions with focus on: Convenience and customer excellence; Creation of opportunities and provision of empowerment for selected sectors: Youths, SMEs, Women and the Underserved.
Polaris Bank’s digital first strategy is aimed at providing easy and simple banking service. The objectives of the Corporate Transformation Plan include sustainability; profitability and capital preservation. ation plan, the management of Polaris Bank in 2Thus, in line with the critical pillars of the transform019 focused on refreshing and upgrading the bank’s IT infrastructure, which led to huge investment in human capital.
Assured by the managerial acumen of the Bank’s leadership led by Mr. Abiru as well as its product penetration strategy, especially for the unbanked and underbanked, many analysts believe very strongly that the recent turnaround in Polaris Bank has the footprint of sustainability.