First Bank Pioneers Digital Banking through Strategic Growth and Innovative Solutions

Olufemi Adeyemi 

Allied with other technological advances, it is granting millions of people access to payment and even credit services for the first time. Banks that already offer digital savings and payment services are adding loan applications and other new functions in the face of growing competition and although the picture is mixed, it appears that the density of physical bank branches has already begun to fall.

African banks are generally driven to invest in digital platforms by a desire to meet customer demand, the savings available and the potential of new technology to increase market share. The cost of constructing, maintaining and having expertise in digital banking is far from insignificant, but it is less expensive than maintaining branch networks and their staff. Specific savings can be achieved and operational efficiency improved by digitising back-office operations and by automating onboarding and credit applications.

The adoption of digital banking platforms by both financial institutions and consumers in Africa is revolutionizing the accessibility of financial services across the continent. Coupled with other technological innovations, this shift is enabling millions to access payment and credit services for the first time.

Banks that currently provide digital savings and payment options are expanding their offerings to include loan applications and additional features in response to increasing competition. While the overall situation is varied, it seems that the number of physical bank branches is already on the decline.

African banks are primarily motivated to invest in digital platforms to satisfy customer needs, capitalize on cost savings, and leverage new technologies to enhance their market presence.

Although the expenses associated with developing, maintaining, and acquiring expertise in digital banking are considerable, they are still lower than the costs of sustaining branch networks and their personnel.

Digitizing back-office functions and automating processes such as onboarding and credit applications can lead to specific cost reductions and improved operational efficiency.

In recent years, First Bank of Nigeria has undergone a major transformation, reshaping its operations to align with the demands of a swiftly changing financial environment. This transformation has been characterized by strategic growth and an innovative approach to digital banking.

Adoption of Digital Transformation

In light of the increasing need for convenient and accessible banking options, First Bank has made substantial investments in technology. The launch of the FirstMobile app has revolutionized the banking experience, providing customers with a wide range of services readily available on their mobile devices. This digital platform enables users to conduct transactions, view account details, and manage their finances effortlessly.

Furthermore, First Bank has introduced several additional digital solutions, such as online banking and automated services, which have greatly improved operational efficiency. By harnessing technology, the bank has enhanced customer satisfaction, optimized processes, and expanded its presence throughout Nigeria.

Business Expansion Strategy

Every thriving business or startup eventually encounters the dilemma of whether to pursue expansion. Expanding a business can offer numerous advantages to owners, including enhanced market share, a broader customer base, reduced costs, and improved operational efficiency. The potential benefits of expansion are significant.

First Bank's growth strategy has focused on broadening its reach both domestically in Nigeria and on an international scale. The bank has launched new branches and secured a foothold in significant global markets, enhancing its status as a prominent financial institution. This expansion enables First Bank to serve a wider array of customers, providing customized services that address various requirements.

Advancing Financial Inclusion

The progress of contemporary technology has facilitated effortless access to financial services for consumers in developed markets

A fundamental aspect of First Bank’s digital strategy is its dedication to promoting financial inclusion. Through the adoption of digital technology, the bank has successfully connected with underserved communities, granting them access to vital financial services. This effort is in harmony with Nigeria’s overarching objectives of enhancing financial literacy and inclusion, enabling a greater number of individuals and businesses to engage in the economy.

In the previous year, the Firstmonie Agent banking services processed transactions exceeding N11 trillion, which is more than twice the volume managed by seven other major banks. Key technological investments include the creation of the innovative and interactive transaction banking platform, FirstDirect2.0, as well as the introduction of a humanoid robot into the country’s banking landscape. These smart banking initiatives are further supported by the establishment of Digital Xperience Centres (DXC) in Lagos, Ibadan, and Abuja, with plans for additional locations nationwide.

Overall, the evolution of its digital banking services has significantly increased both transaction volume and public perception. The integration of artificial intelligence-driven advertisements has enhanced its digital presence. The focus on ease, convenience, and reliability has resulted in a remarkable growth of the customer base, expanding from 0.6 million in 2015 to over 42 million accounts by 2023.

A Visionary Outlook for the Future

Recent advancements in technology have set the stage for a future characterized by ongoing innovation that will redefine our world. With developments in areas such as artificial intelligence and biotechnology, the future of technology is poised to bring about significant changes across all facets of life.

First Bank's strategic growth and digital evolution exemplify a progressive vision for the banking sector. The bank's continuous commitment to technology and customer-focused solutions places it at the leading edge of the industry.

As First Bank embraces innovation and responds to shifting market conditions, it reinforces its position as a premier financial institution devoted to customer service and the advancement of Nigeria's economic landscape. Through these efforts, First Bank of Nigeria is not only improving its internal processes but also establishing new standards for the banking industry, showcasing how traditional banks can effectively adapt and prosper in the digital.

Spearheading Economic Advancement and Inclusive Financial Solutions

With a distinguished history spanning over a century since 1894, FirstBank has firmly established itself as Nigeria’s foremost and preeminent provider of financial inclusion services.

Today, it stands as more than just a bank; it is a significant financial force driving economic growth and development across the African continent.

The bank's dedication to fostering economic advancement and enhancing financial empowerment has been fundamental to its operations, influencing millions of Nigerians and transforming the nation's economic environment by leading initiatives in economic development and advocating for financial inclusion throughout the country.

Last year, FirstBank demonstrated its unwavering commitment to Africa’s economic prosperity by proudly sponsoring the Africa International Trade Exhibition (A.I.T.E 2023) held in New York, USA.

Advocating for Economic Growth

First Bank plays a significant role in fostering economic development by supporting essential sectors including agriculture, small and medium-sized enterprises (SMEs), and infrastructure. Its specialized financing programs for agricultural initiatives enhance food security and generate employment opportunities. Additionally, the bank's lending efforts for SMEs empower local entrepreneurs, promoting innovation and stimulating economic growth.

By offering customized financial solutions and capital to vital sectors, First Bank is crucial in driving industrial growth and advancing national development objectives. Furthermore, the bank's investments in infrastructure projects and collaborations with government entities strengthen its influence in shaping the economic landscape of Nigeria.

Promoting Financial Inclusion:

The effort to provide formal financial services at a reasonable cost to individuals and businesses that are often overlooked—known as financial inclusion—has garnered considerable global focus in recent years, due to its essential role in fostering economic development systematically.

Financial inclusion stands as a fundamental component of First Bank’s strategic approach. The bank has achieved notable progress in reaching out to underserved and unbanked communities through innovative banking solutions and community engagement initiatives. The introduction of the FirstMobile App and FirstOnline banking platform has enhanced the accessibility of financial services, enabling customers in remote locations to conduct transactions and manage their accounts with ease.

Furthermore, First Bank’s commitment to educating and involving communities through financial literacy programs is essential in promoting a culture of savings and prudent financial management. By collaborating with microfinance institutions and launching financial education initiatives, the bank effectively narrows the divide between conventional banking and the unbanked demographic.

Impact and Future Outlook:

The influence of First Bank's initiatives is evident in its substantial role in promoting economic stability and growth. By aiding businesses, encouraging financial inclusion, and facilitating infrastructural advancements, the bank significantly improves the quality of life and economic prospects for Nigerians.

Looking ahead, First Bank is steadfast in its commitment to fostering economic development and enhancing financial inclusion. The bank intends to innovate its financial offerings, broaden its outreach to underserved communities, and maintain its support for sustainable development initiatives.

As First Bank of Nigeria continues to set a benchmark in the industry, its commitment to economic advancement and inclusive financial services underscores its lasting legacy and progressive vision.