The 2023 audited annual financial results of Access Holdings have shown that the financial institution is already reaping the benefits of its huge investment in technology and digitalisation. BAMIDELE OGUNWUSI writes.
One sector that has benefited immensely from technology is the finance sector and through the power of technology, the sector is now at the forefront of digitalisation and innovation. Access Holdings is a significant player in this regard.
The benefits of this digital transformation journey are numerous. The opportunities abound exist for individuals, small businesses, and large corporations including banks.
Digital transformation gives organisations access to emerging technologies such as blockchain, data science and analytics, complex algorithms, Artificial Intelligence and Machine Learning, which facilitate industry-altering growth.
In addition, these advanced digital technologies allow for financial processes to be completed with minimal human intervention.
One financial institution that has taken the lead role in digital transformation is Access Holdings as its banking arm, Access Bank, is leading the pack as it has shown exemplary leadership.
Though, there are moves by some banks at attempting digitalization of their process, it was the COVID-19 pandemic that really brought to the fore the need to digitise and most banks keyed into it.
Before the pandemic, the standard order of business in financial industries involved physical interaction, which COVID-19 disrupted. As the world watched, only a few financial service providers like Access Bank could get past the limitations and tribulations brought about by the pandemic.
Through digital solutions and a mandate as a digitally-led international organisation, Access Bank was able to soar above the challenges of the pandemic.
The pandemic opened up the realisation that a lot could be done outside the walls of physical buildings and offices.
This factor prompted many financial institutions to begin their digital transformation journey, and to accelerate the journey for those who have already started.
Access Bank has tested and incorporated digital tools in every business area. While the physical operations are still important, there has been a clear adaptation to digital processes and more intensive use of technology which promotes collaboration and innovation.
In a bid to think ahead, the bank also invested in emerging technologies and other ground-breaking tools and models, to enable business operations to be carried out in new, flexible, and improved ways.
In 2022, Access Bank further transformed existing digital applications and services.
The bank has also developed new digital products and services, in line with the commitment to maintain top position as a digitally-led financial provider in Africa and the world.
It achieved this by staying abreast of the needs of clients and the market, which are constantly changing.
One of such is Access More which is the bank’s mobile banking super application, unlike any other banking app on the market.
By incorporating state-of-the-art features for modern living as well as analytical tools and technologies, Access More has given its 40 million-plus customers the best mobile banking experience possible.
The bank has also deployed Access More to its African subsidiaries such as Zambia, Kenya, South Africa, Sierra Leone, Guinea, Rwanda, The Gambia, Cameroon, and Ghana.
Being a digitally-led bank, the bank developed Access Africa, Africa’s Payment Gateway, a funds transfer product intended to streamline international payments made by Person-to-Person (P2P), Business-to-Business (B2B), Person to Business (P2B), Government to Person (G2P), and any other payment activities/flows.
In addition to instant transfer to nations where it has subsidiaries, the bank has expanded it each to roughly 15 nations, including the UK, France, Germany, China, Benin, and others, by utilising its wide partner network. By supporting fast Pan-African payments and enabling cross-continental transfers, this promotes borderless digital interaction across Africa.
Significantly, in a bid to make transactions more streamlined, Access Bank designed and developed a biometric payment solution called FacePay. As the name suggests, FacePay uses AI and ML to carry out transactions using facial recognition.
With FacePay, customers at physical branches and merchant locations no longer need to wait in line for service. This digital service allows customers to transact with an innovative face authentication mechanism in the form of a selfie.
Access Bank also provides Business to Business (B2B) digital solutions. The leading initiative in this realm is known as PrimusPlus, a web application that simplifies cash and cheque payments across multiple banks for corporate users.
The bank in its quest to ensure an additional digital channel to manage and carry out uninterrupted daily transactions recently unveiled its innovative offline banking platform, www.901. ng to provide customers with new experience.
With this innovative solution, Access Bank is redefining convenience and security in banking, ensuring uninterrupted access to financial services even in the absence of internet connectivity.
Speaking on the product, Victor Etuokwu, Deputy Managing Director, Access Bank, said: “In today’s fast-paced digital age, connectivity is often taken for granted. However, millions of individuals worldwide still face challenges accessing online banking services due to various reasons such as poor internet infrastructure, remote locations or security concerns”.
Recognising this gap, Access Bank has developed this solution to empower our customers to bank securely, anytime, anywhere, irrespective of internet availability.
We are committed to leveraging technology to enhance the banking experience for all our customers.
With the introduction of our offline banking platform www.901.ng, we are breaking barriers and empowering individuals and businesses to manage their finances with confidence, even in offline environments.
Some of the key features of this offline banking platform includes: A simple way to send money, buying airtime, payment of bills whilst incurring no extra fees or hidden charges and no internet subscription is required and no session fees.
2024: Another good year
Access Holdings Plc, Nigeria’s largest finance holding company, has reported a profit after tax of N612.4 billion, marking a 300 per cent increase from the previous year.
This represents the largest profit ever recorded by the company, under the leadership of the late Herbert Wigwe.
According to the financial statements, Access Holdings reported Gross Earnings of N2.6 trillion, an 80 per cent increase from the N1.4 trillion reported the year prior.
A significant portion of this revenue was attributed to fair value and foreign exchange gains of about N628.9 billion, compared to N335.5 billion reported a year earlier.
The substantial growth in pre-tax profit can be attributed to the significant growth in gross earnings, driven by growth in interest income and non-interest income.
The group attributes the growth in interest income to a higher yield environment supported by a 62 per cent year-on-year (YoY) expansion in earning assets.
However, the bank’s interest expense continued to be elevated due to interest paid on deposits, probably due to the surge in interest rates.
It is worth mentioning that, in contrast to some banks where foreign exchange gains significantly bolstered gross earnings, Access Holdings saw a relatively modest foreign exchange gain of N17.254 billion in 2023, marking a decrease of 49.9 per cent compared to the figure for 2022.
Loans and advances expanded by 60.5 per cent YoY to N8.9 trillion accompanied by an improvement in the Non-Performing Loan ratio, which decreased to 2.8 per cent from 3.2 per cent in 2022.
The group closed the year with N2.18 trillion in shareholders’ funds, marking a significant 77.5 per cent growth from N1.23 trillion in FY 2022.
Commenting on the performance, Bolaji Agbede, Acting Group Chief Executive Officer, Access Holdings Plc, said, “The Group’s strong performance in 2023 reflects our commitment to delivering value to our shareholders and stakeholders amid challenging operating environments.
“The significant growth in our earnings is a testament to the resilience, strategic focus, and efficiency of our team, and reflects the diversity of our offering across banking, pension, insurance, and payments driven by robust risk management, best-in-class corporate governance, and cutting-edge technology.
“As we look ahead, we remain committed to driving sustainable growth, consolidating our footprint, and accelerating the attainment of our 2027 strategic objectives.”
Access Holdings’ regulatory ratios strengthened in 2023 as Capital Adequacy Ratios for the Group, and its flagship subsidiary, Access Bank, stood at 19.01 per cent and 21.09 per cent, respectively. The Liquidity Ratio remained robust at 51.8 per cent, well above the regulatory threshold.
Roosevelt Ogbonna, Managing Director/CEO Access Bank, said, “As we reflect on the results of 2023, characterised by robust growth, strategic acquisitions, and expansion into key trade hubs, I am excited about the prospects for Access Bank.
“Our relentless focus on customer-centricity, digital innovation, and operational excellence has positioned us strongly to capitalise on emerging opportunities. As we enter the consolidation and efficiency phase of our Africa and international expansion strategy, we remain committed to driving sustainable growth, enhancing shareholder value, and delivering exceptional banking experiences to our customers across Africa and beyond.”
Access Holdings’ other subsidiaries also posted strong results, as Access Pensions Limited recorded a 75 per cent growth in gross revenues, amounting to N12.3 billion, while Hydrogen Payment Services posted an operating income of N2.1 billion and a PBT of N161 million.
Access Holdings Plc acquired Megatech Insurance Brokers Ltd. (now known as Access Insurance Brokers Ltd.) and successfully completed a $300 million capital injection into Access Banking Group, which acquired several entities including Finibanco Angola S.A., and select Standard Chartered Bank operations in Africa.
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