Can we say that the New Category-King is now evident? I think in the FUGAZ world, Zenith Bank has clearly overtaken GTBank as Nigeria’s leading financial institution. The impressive ascension of Zenith Bank is a case study for everyone: service excellence will win trophies in banking. Zenith’s technology leapfrogged and the balance sheet responded.
And there is a historical perspective to that: the best of Nigerian banking began when the new generation banks imposed new or higher fees – commission on turnover (COT) – and accelerated service in early 1990s. They reduced what used to be three hours of wasted time, in bank halls, to fifteen minutes – and Nigerians responded. Yes, Nigerians paid the fees but got out of the bank halls faster!
From that experience, it is evident that the most profitable bank customers want service, not just low costs. In other words, if your fees increase marginally and you deliver value, good moments will come.
Zenith Bank’s FY 2020 results broke records: the Profit After Tax (PAT) of N230.6 billion, a 10.4% increase compared to 2019’s N208.8 billion, made it the first Nigerian bank to cross N200 billion on PAT. Hail the new king!
Now, everyone wants to be at the zenith now that Zenith is there; expect new playbooks from other members of FUGAZ.