A hard knock for GTB…..and the banks by Abimbola Akinkugbe

On Sunday I saw the GTBank advert for their upcoming food fair in the papers and I saw red. I decided to wait a few days before writing to be sure my emotions are reigned in.

I still feel the same way though….
I like GTBank architecture, they encourage professionals in the construction industry. They allow creative expression in the design of their branches. I like their internet banking platform as well. It has greatly reduced the amount of interface I need to have with their mostly impolite and untrained branch staff. So this is nothing personal. What is right is just right and what is wrong is just wrong.

Pray what is the business of a bank organizing a food fair that has already been staged by a Nigerian enterprenuer? If they were sponsoring another entrepreneur it would be fine(competition is good for the consumer), but by themselves? That is how they are now promoting the Autism awareness that they enabled one of their customers to do in the past.
When are Nigerian banks going to understand that their business is to help build the economy by building and encouraging businesses.

I tried to open a business account with HSBC in 1991. The account opening package came with a training package to teach me the documentation I needed to put in place to grow a successful enterprise. Complete with forms and diskettes. They didn’t open it in the end as I was Nigerian and domiciled in Nigeria. I don’t blame them. Our own banks are there 25 years after still clawing for COT that has never been charged on any of my checking accounts in the UK.
Is creativity so low that it is now to copy other people’s ideas that they have come to?

To get a loan from them , apart from the fact that the interest rates are prohibitive, the paperwork required are a project by itself, you probably still will not get it except it is for short term purposes, LPO financing, supplies etc.
If it wasn’t that our politicians and law makers are so compromised, building personal empires without giving to the larger community, forgetting that without the larger community these personal empires will not thrive. They should be making laws and policies that will force these banks to do the right thing.

China is a success story, no matter what the West sponsored media tries to put out there. They are a success story by design- purposeful planning.

In China, the government has a research and development unit. They identify growth areas in the world, write business plans, go to a local government and give the people money, technical support etc to run the businesses.

In China, if you want to build a factory by yourself, the land is free, the loan is interest free for the first 10 years…..who anywhere in the world can compete with that?

Is it me who had to get a loan from a finance house at 26.5% the same rate offered by GTBank, who had taken me on a merry-go-round of paying for valuations, applications, tender process only to still refuse the loan after 6 months. By the way I got cash value from the finance house in three days and shares were sufficient collateral not property as demanded by GTBank oh!

The government needs to enact a law that Nigerian banks must put a certain percentage of their profits to setting up new SMEs, especially in the manufacturing sector. These new entities must be visible and quantifiable. I know people will say they will give it to only their people, that’s okay as long as the entities are created and people are employed and the economy is actually growing in real terms.

GTBank has just been the catalyst for my write up. Nigerian banks are all the same. Growing Nigerian businesses is not on their agenda and it must be made to be. Why else would they have in-house property sections and undertake branch renovations. What effect does that have in the construction sector? Even Christmas decorations are in house. I understand the need to maintain competitive costs but not by throwing away the baby with the bath water. Insurance had to be wrestled from them. Very soon there will be GTBank hospital and UBA supermarket.

Food fair ko, food fair ni, Mschew!

(Taken from a Facebook post)