Savings mobilisation is an area Skye Bank plc has deliberately focused on, as its branches are been isolated to grow deposits.
The bank’s target for this year is to grow savings to about 15 percent of the total deposit after it recorded 4.2 percent customer deposit from N790.1 billion in December 31, 2012, to N823.3 billion in its financial year ended December 31, 2013. Meanwhile, the resources required to achieve this are already been put in place.
“We are very optimistic that the expected growth is going to be achieved. We are a retail bank and that is what we do, we set up 260 branches; we are also involved in the CBN’s drive for financial inclusion and a lot of products that are coming out are products that would promote savings. We are also involved in promoting savings culture in schools, and all these would contribute in growing our figures,” Timothy Oguntayo, group managing director/CEO designate of the bank, said.
On strategies to lower the bank’s cost of funds, he said the bank had designed new retail banking strategies that would aid the mobilisation of cheap deposit, pointing out that the financial inclusion scheme gave banks the opportunity to do this.
“I think last year we recorded Cost Income Ratio of about 67 percent, the focus this year is that in spite of inflation we should be aiming at 60 percent and this is because we have introduced low-cost management processes in the system. We are going direct to medium providers of services, we are also looking at alternative sources of power, we are introducing a lot of measures,” Oguntayo said.
The bank’s strategy and initiatives include upgrade of software, ‘Flexcube,’ from version 6.2 to version 12.0, which will be completed in Q2 2014; automation of operational processes to support Information and Communication Technology (ICT) Transformation Project; deployment of stringent control measures to effectively manage operational cost; balancing of deposit mix; improved channel accessibility where 8,114 PoS terminals and 593 ATMs have been deployed with capacity for more, and improved IT security and user-friendliness on its internet banking and other related platforms.
In terms of growth strategy, the bank has raised a total of $150 million tier 11 capital as part of the measures to beef up its equity and working capital, with part of the money in the coffers of the bank. The additional capital is expected to be finalised by the end of July this year. The bank intends to deepen the retail and commercial business and access to low-cost deposits via selective branch expansion, among other initiatives.
Skye Bank is known for its leadership in e-channels, e-business, and has demonstrated this over the years. It has one of the best and efficient Automated Teller Machine (ATM) network in the country. The bank has also distinguished itself in the area of real estate development and oil/gas.
Oguntayo said: “In the country today, we are number one in the real estate development financing, in the oil/gas, especially in the upstream, we rank as one of the first in the system. So, if you are looking for specialist in the real estate and the oil/gas sectors, the operators in those industries know Skye Bank. But beyond that, we are known for good relationship management, we partner with our customers, we go the extra mile to understand their business and we give them the financial advisory services that they require.”
HOPE MOSES-ASHIKE
