Why CBN approves changes in banks’ names, structures, others (Full List)

*The First Bank of Nigeria, Sterling Bank and Zenith Bank banks have significantly rebranded and repositioned to strengthen their leadership positions in the financial sector of the Nigerian economy

Isola Moses | ConsumerConnect

The First Bank of Nigeria Limited, Sterling Bank, and Zenith Bank Plc have all announced changes in their names, structures and other operational areas in recent times.

This development attests to the fact that several Nigerian banks and other financial institutions are undergoing significant changes in name, organisational structure, and operations to better position themselves for higher returns on investment (RoI), better product offerings, and increased competition in the financial market.

Zenith Bank, for instance, recently received approval in principle from the Central Bank of Nigeria (CBN) to restructure and operate as a financial holding company in the country.

The Deposit Money Bank (DMB) bank also plans to change its organisational structure to have a banking subsidiary and other subsidiaries in the financial services sector, according to report.

Likewise, Sterling Bank is transitioning from a financial institution to a holding company.

Sterling Bank has completed an essential step in its ongoing efforts to shift from a financial institution to a holding company.

The bank plans to delist, transfer and relist all shares to the Sterling Financial Holding Company on the floor of the Nigerian Exchange (NGX) upon completion of the transition.

Sterling Holdings Company will begin operations with two banking subsidiaries, according to report.

One will be operating as a conventional commercial bank, and the other as the Alternative Bank Limited, which will operate as a non-interest bank.

Nigeria’s oldest bank, First Bank Limited, as well changes name of its African subsidiaries recently.

It was learnt the name change aligns with the subsidiaries of the parent brand, and enjoys the strong heritage and brand equity built by FirstBank Nigeria in its 129 years of existence and industry leadership.

The name change also affects its operations in several African countries where the leading financial institution operates.

Implications of name changes on banks’ operations, consumer perceptions

While the banks’ changes of names do not affect their core operations and responsibilities, they will impact public perceptions and consumers’ acceptance cum acceptance in the financial market.

Meanwhile, following the banks’ decision to rebrand and reposition, it is noted that the move is fast becoming an ongoing trend in the Nigerian banking industry.

Other banks have significantly rebranded and repositioned to strengthen their leadership positions in the industry.

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