The Central Bank of Nigeria has granted a non-interest banking licence to Lotus Bank Limited, further opening up a very important and niche market in the banking sector.
Lotus Bank joins a growing tribe of Non-Interest Nigerian Banks. The Bank is deeply rooted in ethical banking and committed to ethical investing and ethical prosperity. A statement on its website asserts that the Bank is “committed to deepening financial inclusion and broadening the array of non-interest products available to the banked, unbanked, and under-banked population.”
The statement continues: “Our values are bold, ethical, and birth new ideas. They are a testament to our desire to deliver a differentiated customer experience that supports Nigerian businesses and supplies shareholder value. We’re proud to partner.”
A press statement released last Thursday confirmed the news that CBN has granted Lotus Bank licence to commence non-interest banking operations. The statement affirmed that “Lotus Bank seeks to pursue the mission of creating value and growth for all through digital innovation and best-in-class customer experience for Nigerians”.
Founded and Chaired by Mrs Hajara Adeola, who is also the founder and managing director of Lotus Capital (the pioneers of non-interest finance in Nigeria), the bank said it was starting its operations on a solid foundation of experienced leadership and a strong advisory council of experts.
Lotus Bank is managed by a team of seasoned professionals and financial experts led by the Managing Director/Chief Executive Officer, Mrs Kafilat Araoye, who has over 25 years of commercial banking experience.
According to the managing director, Lotus Bank’s focus and guiding principle is ‘to deliver an alternative option to interest-based banking and to cater to the needs of not just the banked but also the underbanked and unbanked population.
Non-interest banking was geared towards supporting the real sector and Lotus Bank aimed to improve financial inclusion in the country, it stated.
The bank said it would operate transparent pricing models as it was the norm in non-interest banking.
“Our values are deeply rooted in partnership. A critical component of our mission is the provision of innovative solutions that drive ethical prosperity for all stakeholders. We pride ourselves on digital solutions that provide our customers with the convenience of unlimited access to our services and products,” the statement said.
Araoye stated that, “Our products and service offerings will include non-interest business financing, deposit products (current, savings and investment accounts) and personal financing.
