Tekedia Capital Syndicate is beginning the next investment cycle. We have amazing startups coming, covering most industrial sectors. We invite citizens, companies, investment clubs, etc to join – and co-invest in the empires of the future. We’re seeding the foundations of the next African economies through entrepreneurial capitalism. Startups in our portfolios have gone to Techstars, YCombinator, etc.
To join our Syndicate, membership (or four investment cycles) is $1,000 or N550,000 . You do not need to invest in all cycles.
Visit Tekedia Capital and join dozens of other members to own a piece of the great companies of tomorrow which are seeded today. Begin here and let’s join the rocket ship.
In case you missed it: Tekedia Institute and Nnamdi Azikiwe University Nigeria have signed a big strategic partnership. Read more here
Also, Tekedia Mini-MBA continues registration for the edition beginning Feb 7. The 12-week program costs $170 or N90,000. Beat the early bird and unlock many early benefits including my books, Facyber course, and more. Register here.
Tekedia Institute offers Tekedia Mini-MBA, an innovation management 12-week program, optimized for business execution and growth, with digital operational overlay. It runs 100% online. The theme is Innovation, Growth & Digital Execution – Techniques for Building Category-King Companies. All contents are self-paced, recorded and archived which means participants do not have to be at any scheduled time to consume contents. Besides, programs are designed for ALL sectors, from fintech to construction, healthcare to manufacturing, agriculture to real estate, etc.
The sector- and firm-agnostic management program comprises videos, flash cases, challenge assignments, labs, written materials, webinars, etc by a global faculty coordinated by Prof Ndubuisi Ekekwe. It will run from Feb 7, 2022 to end May 7, 2022.
Ndubuisi Ekekwe receiving award in Kampala . Uganda
The Nigerian banking sector seems extremely competitive. But that competition may not be deep if you see how banking is done in America. In other words, despite the competition for commercial banks in our land to get the next deposit, there is indeed a great opportunity for a neobank to deliver a new basis of competition on service delivery. This service delivery is not just responding to emails or complaints, but going beyond customer needs, expectations to perceptions.
Why am I writing this? Last week, I received an email where my US company bank was blasting introductions to companies, telling them that it has a great customer they need to assist on global shipping. I did not make that request but I did tell them when we spoke on Tuesday that I hate delays on our goods to Peru, Canada, Romania and other places where we ship things.
The delay was not their fault; it was custom related but the bank is doing all it can to fix that problem for us. In all the emails, it began thus: “Business sells farming electronic equipment to customers outside of the USA.”
Now, think of it: can your bank help you fix the Apapa dreadlock? If not, can a neobank go ahead, identify some critical customer issues, and use its capabilities to help customers solve those issues? We’re an engineering company. We like designs. Logistics and delays at customs should not be our problems. I am happy the bank is helping to fix those for us.
Banking for the future will go beyond managing customers’ deposits: you need to vertically integrate into how the customers generate the cash.
A neobank that can deliver those other intangibles will win opportunities in Nigeria. Yes, structure the supply chain, assist on warehousing, etc, in addition to what banks do. And you do those things by making it clear that you know this customer. Our banks in Nigeria do not know us: they never demonstrate that because they have never offered any credit even though we have never asked. But the US bank uses algorithms to offer credits, adding a button on the dashboard in the app. If you click the link, the money will drop in 24 hours.
Essentially, they use the knowledge of your business to entice you to take credit without you even asking for it. They have memory and they simplify your frictions at scale. Doing those in Nigeria will open opportunities for neobanks.
Zenith Bank is now the most valued bank in Nigeria at N810.030 billion. GTCO, the holding company which controls Guaranty Trust Bank is now at N759.324B. OPay remains the most valued financial institution at $2 billion (N1 trillion) according to data from its last raise.
Today, we are learning that Japan’s mega fund, SoftBank, is leading a $400 million raise in OPay, pushing the company to a valuation of $2 billion: “The company, founded in 2018, had an exclusive presence in Nigeria. It provided various digital services ranging from mobility and logistics to e-commerce and fintech at cheap rates for consumers.” Yes, within 3 three years, OPay has a market cap that is bigger than more than 80% of Nigerian banks. This shows the impact of technology in an industrial sector.
This plot created by Nairametrics shows the numbers as at the end of December 2021.
We will get to this destination as this redesign evolves.
In this videocast, I discuss the need to build a truly pan-African digital remittance/transfer banking product which is agnostic of location or currency in Africa. None of the products we have today meets that standard. Largely, I envisage a situation where all you need to buy and sell across Africa is one bank account in just one African Union country. With that, you do not have to even think about the specific currency of that account as technology will seamlessly make it possible to access other African markets for payments, transfer, etc. The banks or fintech companies must still comply with all regulations related to international transfers, forex, etc. The only difference is that customers will not see them as they will be hidden with technology.
In not too distant future, technology will overturn those banks.
The funding for “fintech” is not coming from banks but foreign inflows, this supports the notion that Nigerian banks are not really growing business but only those that are already established.
No matter your good business ideas, banks will not come to your aid when you are starting. When they start to see your growth trajectory, all the bank relationship officers/managers will want to be associated with you. You will see all sorts of Christmas gifts even from those you are not banking with, all in an effort to woo you and get a share of your sweat.
One of the best ways to improve customer retention and build brand trust is to ensure that whatever products a business is producing, it has to have a very good equality. No one would want to patronize a business that produces low-quality products. After not being satisfied at the first trial people will be forced to look elsewhere to ensure they get the best of what they want.
Almost everyone would agree that the quality of a product is important, but not everyone has the same ideology as to what constitutes high quality. For some people what they consider a product of high-quality, is if the product is luxurious or durable while for others they consider a product quality if it is efficient or easy to use.
Regardless of the definition, product quality greatly affects a companies’ profitability. There are several things that constitute product quality;
Is the product easy to use?
Is it efficient?
Does it solve a problem at all?
Is it tailored to your customers?
But then let’s look at the reasons why product quality is important.
It brings recommendations: No one uses a quality product and wouldn’t want to recommend it to others who are also in search of similar products. When a product has very good quality, it fuels recommendations from friends and family above all other forms of advertising because of first-hand experience. Recommendations are very persuasive because people who have used the product will give a very detailed review of it. The higher quality product a company has to offer the higher the chance they will have at driving positive reviews, and recommendations from consumers.
It builds customers’ trust: Without getting customers’ trust, most businesses won’t succeed. A business can’t expect high patronage if customers can’t trust them. Countless potential sales are lost when brands fail to make deeper connections with prospective buyers. One very good benefit of gaining the confidence and loyalty of consumers is that even when the price of the product is raised, they wouldn’t mind purchasing it, because they have earned their trust. This is why businesses should ensure that they produce high-quality products because it is one way to get customers to have trust and believe in what they offer. Customers always come back when a product is good even if the price is high.
It produces a higher return on investment( ROI): There is no disputing the fact that high-quality products bring about a high return of investment. A quality product creates unshakable customer loyalty that generates increased leads. Some brands in a bid to cut costs, produce low-quality products, thinking they have done the wise thing. They only sold themselves short because when people buy the product and are not impressed, it will definitely lead to low sales turn-out for the business. Also, improvements in performance, such as improved features or increasing any other dimensions can lead to increased sales and also give a boost to the ROI.
There are fewer complaints and returns from Customers: We might have had an experience where we bought a certain product and we weren’t impressed with the product, only for us to return the product disappointed. This is what happens when a brand produces low-quality products. It is usually followed with complaints and returns from customers. Every brand ought to spend more time and money upfront perfecting a product before it hits the market because it will minimize customer complaints and returns. The more successful companies are at pleasing customers during their initial experience with a product, the more likely they will be to see repeated purchases from those customers and experience little or no returns.
Conclusion
No one is ever pleased using a low-quality product because it doesn’t give them the satisfaction they expected. People always go for what gives them satisfaction no matter how high the price may be.
This is why businesses should ensure that any product they are producing for public use, should be of top quality. It doesn’t matter how much they spend in ensuring that they make the product top quality. One thing is sure that when the products reach the market it is sure to get massive sales.
