In a country with short-lived corporate excellence and a handful of centenary companies, hitting 130
years is undoubtedly a significant milestone for Nigeria’s premier financial institution, FirstBank.
GEOFF IYATSE writes.
Experience, they say, comes with age. Nothing else aptly defines the consistent growth of First Bank of
Nigeria Limited (FirstBank) and its consistent reinvention as the conscience of corporate Nigeria in the
face of rising competition from traditional and other shadow banking brands.
Not many living Nigerians can list a single other existing Nigerian company founded in 1894, long before
modern Nigeria was created. But FirstBank has not only survived the long 13 decades during which it
etched itself into the socio-economic fabric of the country and created a niche as Nigeria’s banker, but it
has also pushed itself into the frontier of financial technology evolution, making an inroad into the
consciousness of tech-savvy Nigerian youths and the upwardly mobile banking public.
For an organisation that has stuck to Nigeria through thick and thin and enjoyed the monopoly of
banking the country from the cradle, long before Africa tasted the beauty of financial system evolution,
FirstBank could have been a dinosaur. That would have been easy. But it has chosen the tougher option;
challenging traditions, breaking new ground, and constantly refreshing its operational template to stay
ahead of the curve.
Established in 1894 as British Bank of West Africa (BBWA) by the late Sir Alfred Lewis Jones, a shipping
magnate, FirstBank has been at the forefront of Nigeria’s economic growth and development through its
superior banking services and social investments across sectors – manufacturing, small and medium
scale enterprise (SMEs), agriculture, oil and gas and just about every other sector that has contributed
to the country’s economic discovery.
The history of FirstBank is the history of Nigeria. At some point in its history, it even served as Nigeria’s
Central Bank. Today, as the undisputed leader of the country’s brick-and-mortar banking, its nearly 800
business locations across the country give it robust presence in every local government across the
nation.
Of course, in an era of ‘click’ banking, no financial institution is assessed by the strength of its physical
banking network alone. Interestingly, the premier institution understands this logic, hence it has
emerged as a force in continuously investing in cutting-edge financial technologies. For one,
FirstMobile, its digital banking application, has also become a household name in the financial
technology ecosystem. In 2015, when the platform was still at its infancy stage, its user base was about
60,000, a number that has soared to over six million (a growth of over 10,000%) as of last year. That has
contributed immensely to its changed perception from traditional bank to innovative digital bank.
Today, about 85 per cent of its transactions are initiated via digital platforms, according to insights
provided by the bank in its public statements.
FirstMobile appears to have hit the bull’s eye in the bank’s reinvention drive and efforts to appeal to
younger demographics. But the platform itself is only one of the potpourri of telecommunications-
driven initiatives it has taken on to get young depositors on board. FirstOnline users have also grown
from about 90,000 to over one million in less than a decade just as its USSD banking, which targets
feature phone users, is even more successful with users increasing by close to 3,000 per cent in the last
eight years, to about 15 million.
Last year alone, its Firstmonie Agent banking services processed over ₦1.1 trillion in transactions, more
than double the amount handled by seven other big banks. Some of its strategic investments in
technology include the development of its smart and interactive transaction banking platform known as
FirstDirect2.0 and the introduction of the humanoid robot to the banking ecosystem in the country. The
smart banking initiatives have been complemented by its Digital Xperience Centres (DXC) which are
currently located in Lagos, Ibadan, and Abuja with plans to open more across the nation.
Overall, its digital banking has evolved in both volume and public perception even with artificial
intelligence-driven commercials complementing its digital imprints. Ease, convenience and reliability
created in recent years have moved the customer base from 0.6 million in 2015 to well over 42 million
customer accounts as of 2023. This number, according to the Chief Executive Officer of FirstBank Group,
Dr Adesola Adeduntan, during an interview with The Guardian last year, would double in no distant
future as the organisation migrates aggressively to transaction-led banking. In September 2023 the
bank’s non-interest income hit ₦293.0 billion, up 111.6% in comparison to September 2022 at ₦138.5
billion validating the bank’s commitment to a transaction-based era.
In addition, the number of users on the Bank’s digital channels has grown from about 600,000 users in
2015 to over 23.2 million users in 2023.
On the back of the extensive technology infrastructure overhaul FirstBank embarked on under
Adeduntan’s leadership, its digital banking channels have become the most dominant delivery channel
with the percentage of customer-induced transactions processed via digital channels increased from
about 20% to over 90%. FirstBank has equally been consistent in its profitability. Its Group profit before
tax (PBT) has climbed steadily from 10Billion naira in 2015 to 362.24Billion naira in 2023.
For an organisation that has not only created Nigeria’s banking industry but also dynamically shaped it,
there is no reason the brand would not attract the best professionals. It attracted a blend of top
Nigerian bankers and became the training ground for young professionals who have contributed to its
rich history of corporate leadership. Despite this, Adeduntan who assumed office with a touch of
dynamism, clearly understood the meeting point between institutional legacy and modern ‘click’
banking. In close to a decade since he first took over the reins at the Bank, he has brought this to bear,
rejuvenating the rich corporate culture of the bank, competing actively in the youth space in both
employment and business.
Nigerian banks have grown to become international brands, competing for businesses across Africa,
(which they have dominated), Europe, Asia, and other Continents. With its United Kingdom subsidiary
(which has a representative office in Paris, France) celebrating its 40th anniversary in 2022, FirstBank
has led the revolution. Other subsidiaries of Nigeria’s premier financial inclusion services provider
include FirstBank in the Democratic Republic of Congo, Guinea, Sierra Leone, and The Gambia; FBNBank
in Ghana and Senegal as well as a Representative Office in Beijing, China.
Indeed, local banks have done well in recent years in opening offshore operations except that most of
them are cost-centres, hence the promoters are often accused of ego-seeking and extroversion. And it is
true because most of the subsidiaries’ operations have created a gaping hole in the bottom lines of the
consolidated accounts of many of the institutions. But FirstBank turned the tide. In 2022, its overseas
operations contributed a combined 21.3 per cent to the group’s pre-tax profit. Adeduntan has
repositioned the financial institution from purely a Nigerian company to a multinational brand with
African focus but a Nigerian nucleus.
Beyond its name, it has recorded several firsts in the industry it single-handedly created. Some firsts
include – the first to be listed on the stock exchange, the first – amongst the existing banks – to adopt
the use of ATM and the first Nigerian bank – and second in Africa – to reach the 10 million ATM cards-
issued milestone. In addition, FirstBank is leading in AI and robotics with regards to the deployment of
Humanoid Robots, in the financial services space in Nigeria. The robots are equipped with Video
Banking and Artificial Intelligence (AI), taking on the role of friendly branch staff. The financial institution
is the first to foray into arts, food, music, and other lifestyle sponsorships as part of the brand value
proposition for clients of all ages.
Speaking on the resilience of the bank at a recent function Adeduntan disclosed what he called the
bank’s secret of success: “At FirstBank, our purpose is to enable success, putting our customers and
stakeholders at the heart of our business.
“For the years of our existence, we have focused on providing excellent financial services to meet the
needs of our esteemed customers. We continue to improve on our products and create new ones that
suit their specific needs. The reason why we have been successful is our ability to invent and reinvent
ourselves. You can only be successful like that when you make your customer the centrepoint of all your
actions. That is the secret of our success.”
The bank has demonstrated it is a responsible corporate citizen, playing a catalytic role in the economic
and social development of the country. FirstBank’s sustainability/ESG focus, and commitments are in
three key areas: Responsible Lending, Procurement & Climate Performance; Financial Inclusion &
Diversity; as well as Education, Health, and Welfare.
Customers of the financial institution remain a vital element of its business. So, the bank constantly
seeks responsible ways to provide lending and investment products and services that meet the
customers’ needs, while ensuring that it manages the environmental social and governance (ESG)
impacts in the process thus contributing to and promoting overall sustainable growth and development.
About N5 Trillion worth of transactions were screened for ESG risks in 2023.
The bank has shown its commitment to playing a key role in the transition to a global net-zero economy
by decarbonising its operations and value chains, driving climate finance, and promoting climate
thought-leadership. For example, its partnership with Nigeria Conservation Foundation has seen the
financial giant begin 50,000 trees planting with this year 2024 set as target year for this audacious goal.
FirstBank’s community development initiatives are anchored on its strategic Education, Health, and
Welfare pillars. In 2023 alone, FirstBank executed various projects under the Start Performing Acts of
Random Kindness (SPARK) initiative with growing impacts across 8 countries, including 60 beneficiary
schools with over 150,000 secondary school students, and 30,000 underprivileged people and widows;
over N100,000,000 (one hundred million naira) donations covering books and infrastructure for
students, food items and clothing for the underprivileged, provision of capital for small and micro
businesses.
Its FutureFirst programme in partnership with Junior Achievers Nigeria (JAN) has impacted over
1,000,000 (one million) people across the regions of the country including Lagos, Port Harcourt, and
Abuja with the knowledge of financial literacy and entrepreneurship. It has also strategically driven
partnerships with over 100 Charities/NGOs including LEAP Africa; International Women Society; UNGC;
UN Women; Junior Achievement Nigeria.
Following the COVID-19 lockdown, FirstBank stepped in to donate cash (over 1 billion naira) and food to
support the government in the fight against the pandemic. It also provided an innovative e-Learning
initiative enabling the education of one million Nigerian students to drive sustainable efforts towards
improving education for all. In partnership with the Lagos State Employment Trust Fund (LSETF), it
launched a N5 billion LSETF-First Edu Loan scheme to cushion the impact of the COVID-19 pandemic on
low-cost private schools in Lagos State.
For 30 years, FirstBank has remained a sponsor of the annual Nigerian Economic Summit, organised by
the Nigerian Economic Summit Group, a think tank group with a mandate to promote and champion the
transformation of the Nigerian economy into a private sector-led economy.
It is known for other sponsorships including, the Kaduna Georgian Cup Polo Tournament, now in its
103rd year, which is perhaps the longest-standing sports sponsorship in the world. FirstBank is also a
long-standing sponsor of the Lagos Amateur Open Golf Championship at the Ikoyi Club, a property it has
faithfully sponsored for 62 years.
The bank has played a crucial role in empowering entrepreneurs, women, students and the rapidly
growing creative industries locally, which are gaining global recognition. Its strategic interventions
through DecemberIssaVybe, FirstGem, SPARK, FirstBank Women Network and numerous other
campaigns have been impactful, especially in addressing some key United Nations Sustainable
Development Goals (SDGs).
FirstBank has demonstrated its commitment to Diversity through policies, partnerships, and initiatives,
such as its employees’ ratio of female to male (39 per cent :61 percent); and 32 percent women in
management, and 11 women on the Board of Directors across the FirstBank Group as well as various
initiatives aimed at addressing the gender gap and increasing participation of women at all levels within
the organisation.
In addition, the Bank’s membership of the UN Women is an affirmation of a deliberate policy that is
consistent with UN Women’s Women Empowerment Principles – Equal Opportunity, Inclusion, and Non-
discrimination.
And there have been rewards via awards for its leadership and life-changing initiatives. The recent ones
include Best Corporate Bank at the recent Euromoney Awards for Excellence, Nigeria 2023; Best
Corporate Bank Western Africa 2023, by Global Banking and Finance; Best Internet Banking in Nigeria
2023, by International Business Awards; Most Innovative Banking Brand in Nigeria, by Global Brands
Awards; the Financial Institution of the Year 2023, by Afreximbank Pan-African Business and
Development; Best CSR Bank Western Africa 2023 by Global Banking and Finance Magazine; Market
Leader Nigeria in ESG – Euromoney Market Leaders 2022. For six consecutive years (2011 – 2016),
FirstBank was named ‘Most Valuable Bank Brand in Nigeria’ by The Banker Magazine of the Financial
Times Group and ‘the Best Retail Bank in Nigeria’ from 2011 to 2018, an award of the Asian Banker
International Excellence in Retail Financial Services Awards.
At the heart of FirstBank’s success story – which includes enabling the success stories of its customers
and other stakeholders – lies its ability to continuously reinvent itself. And the reinvention seems to
have started in earnest. For instance, its stock soared recently, pushing the Group into the exclusive club
of stocks with over one trillion (SWOOT) capitalisation. A few months after the remarkable feat, it went,
shoving other lenders aside to reclaim the most capitalised banking stock on the stock exchange.
It has been 13 decades of rising and growing with Nigeria. But FirstBank is obviously not slowing down in
its journey with the country its operation pre-dated.
Culled from The Guardian
