UBA LAUNCHES N3BN MICROFINANCE BANK

May 14 2008

United Bank for Africa Plc, West Africa’s largest bank, has launched a microfinance subsidiary known as UBA Microfinance Bank Limited, in furtherance of its retail banking strategy and leadership role in the industry.

The establishment of the UBA Microfinance bank was revealed to financial journalists, at a press launch in Lagos, Tuesday 13th May 2008 by the bank’s Group Managing Director/CEO Mr. Tony Elumelu accompanied by senior members of the UBA management team. According to Elumelu, the formation of the microfinance outfit is predicated on the need to support the growth of micro and small scale enterprises.

UBA Microfinance Bank, the first stand alone subsidiary of its kind in the Nigerian banking sector is capitalised to the tune of N3billion and has commenced operations in Lagos from its maiden branch in Oke-Arin. “We opened to a very enthusiastic and greatly valued reception by the market. We have since commissioned several customer contact centres equipped with dedicated agents, spread over strategic locations in Lagos in a bid to get to our customers’ door steps” said Lizzy Osunde, MD/CEO UBA Microfinance Bank Limited.

Stating that an application for additional six branches is before the CBN for approval, Osunde explained that microfinance is not about giving handouts but by creating an enabling environment where people with legitimate business ideas, a vocational attitude and a burning desire to succeed can acquire the financial resources to actualise their dreams.

Mrs. Osunde said the bank will further address the finance related challenges being faced by micro and small businesses in Nigeria and Africa by banking the poor and low-income earners. “The un-banked and under-banked members of the public constitute a critical part of the society in most African economies and represent vast potentials for economic growth, but lack access to finance. In line with our vision, UBA Microfinance Bank is set to become the biggest financial partner of the poor in Nigeria and Africa” she proclaimed.

Specifically UBA Microfinance Bank will provide increased access to financial services for micro and small business owners as well as stimulate and promote family and rural businesses with emphasis on women-owned businesses. Specialised services to be rendered include micro deposits, micro lending, micro investment and small-business advisory services. In addition to these services, the subsidiary will also seek to collaborate with the public sector and relevant parastatals and agencies at all levels through partner funding arrangements in their various economic empowerment initiatives.

UBA Plc is the largest banking group in West Africa with a balance sheet of approximately US$15bn and more than 6 million customers across the region. It is a full service financial services institution, offering retail banking, corporate and investment banking, private equity, asset management, stockbroking and custodian services through its over 700 business offices. UBA Microfinance will leverage on the vast retail distribution size to take microfinance banking to all corners of the country and ultimately Africa.