Every mustard seed sowed grows to become a gigantic tree in the forest. This is the story of one of Ghana’s successful company, Om- niBank Ghana Limited, which started some 27 years ago from a humble beginning as a “tier 2” Bank. Having been operating in the banking sector as a savings and loans company, Union Savings and Loans Ltd. acquired a deep understanding of financial inclusion and SME banking in Ghana. The firm’s sudden presence in the savings and loans industry became evident some four years ago when it embarked on major restructuring and recapitalization that made it a trusted brand and a very solvent banking institution serving thou- sands of individuals and businesses across the country.
THE TRANSFORMATION PHASE
The company’s acquisition took effect in 2009 when a group of investors saw an opportunity to provide Banking services to the SME market which appears neglected by the “tier 1” Banks– universal banks in Ghana. “The whole of this acquisition was to support indigenous SME’s in Ghana. So, when that opportunity brought itself, a deal was struck to acquire an existing savings and loans company in Kumasi” the Board Chairman, Abdullah Baba Issah, reminisced.
Union Savings and Loans Ltd. at the time of its acquisition was known to be operating with three branches with very poor financial standing and as such required significant recapitalization to boost its operations. The new shareholders took the steps to inject huge funds into the firm to improve its infrastructure and also invest in people so they could achieve their objective of supporting the SME sector.
STRATEGIES ADOPTED TO OUTWIT THE COMPETITION AFTER THE ‘FACE-LIFT’
The acquisition of the firm obviously came with various challenges as it was difficult for the firm to clearly define its area of operation in distinguishing itself as a savings and loans firm and not a micro finance company. This challenge, however, has found itself eating into the fabric of the savings and loans sector as majority of people misconstrue the operations of savings and loans institutions with that of micro- finance institutions. “Since the acquisition of Union Savings and Loans Ltd, we have been at the forefront of distinguishing between savings and loans sector and micro finance sector to help instill customer confidence in the savings and loans industry” Caroline Reindorf, a Board Member, explained.
Considering the stigma associated with the micro-finance institutions, the company needed to re-strategize to clearly define its niche by branding itself as a “mini bank”. In other words, the firm “dared to be different, branded and positioned itself as a small bank and not as a savings and loans company. So, the public– our clients, always perceived us as a bank”, Mr. Philip Oti-Mensah, the CEO, averred. Aside this underlying strategy, there was also the firm’s passion to make an impact in the banking landscape and moreover contribute to the development of the SME sector in Ghana by creating an SME clinic to handle their operations. These, the firm aspired to achieve through its values of Godliness, Discipline and Integrity.
Besides the SME clinic, one other strategy adopted was having a well-trained team of Clients’ Relationship Officers who interacted with customers on regular basis at their business premises hence, providing door to door SME- related services.
THE PRIME SUCCESS FACTOR
Notwithstanding the strategies enumerated above as essential factors to outwitting the competition, Union Savings and Loans Ltd. considered its staff a principal contributor to its success. The firm can boast of well trained and dedicated staff as the foundation that constantly kept it ahead of the competition. “In 2013, when we started restructuring the company, what we looked out first, which has been the basis for the success, was the quality of the people. So, we took our time to go to the market to identify and hire the best of people. We have a policy we call the 60/40 policy i.e. 60% of our staff are hired directly from the universities and 40% are taken from other banks and we make sure that the 40% influence the 60% positively. We believe that if you hire the right people, you don’t only get the brains to develop the right products and services to serve the market but also when it comes to the day to day interactions with clients, you also have the right type of people with the right attitude. So, for me and my team as well and the Board, it’s all about people. Aside people, all the other things are secondary,” the CEO established.
ACQUISITION OF PROVISIONAL BANKING LICENSE
In 2013, after the restructuring, the company set out with a new vision to be at the top of the “tier 2” banking space by 2015 and to become a universal bank by 2017. Two years afterwards, the company under the leadership of Philip Oti- Mensah, the CEO, was issued with a universal banking license by the BOG by 2015, meeting its goal two years earlier than the anticipated date. This achievement was viewed by the CEO as a total contribution from the staff who collectively withstood the challenges and saw the possibility of achieving the feat. Currently, Union Savings and Loans Ltd. has been issued a banking license to operate as a universal bank and thus, has switched to become one of the universal banks in the country, OmniBank Ltd.
EXPONENTIAL GROWTH
The company grew its total assets from a base of GHc10 million at the end of 2011 to GHc240 million at the end of 2015. This meant that on the average for the four years, total assets doubled. This was driven by an increase in deposit of customers; customer deposits grew from GHc6.6 million at the end of 2011 to reach more than GHc150 million at the end of 2015.
This exponential growth led to the firm receiving numerous awards from various stakeholders pointing and proving their undeniable excellent performance in the industry. “We also received many awards, about nine of them. We were the emerging brand of the year in 2014. Even in 2013, when we started rebranding, we were nominated for this award which for me was very impressive. Again, at Ghana club 100, we were given the award as the fastest growing company in Ghana. We also got the award as the No. 1 savings and loans company and overall, the No. 5 most prestigious company in Ghana,” Mr. Philip Oti-Mensah revealed.
COMPETITIVE ADVANTAGE
Businesses in the 21st century, in order to outwit their competition, must clearly have a unique advantage over their competitors. Union Savings and Loans Ltd. (now OmniBank Ltd.), understanding this concept, employed the use of modern technologies and also designed products that were simple and easy to understand and distributed via convenient channels. “We believe in simplicity. We believe in speed. We believe in serving our customers through the use of cutting-edge technologies. Now, to provide these services, we’ve deployed various platforms that our customers can interact with us. Currently, we have 21 branches and have deployed 16 ATM’s to serve our customers,” Mr. Harrison Ahorgba, E-banking manager, narrated.
Also, considering the market competitiveness, the firm needed to churn out products which were unique to enable them stand-out of the competition. One of such products was the OmniBanking. The OmniBanking was designed to provide financial services to under banking communities which made it possible for customers to make bill payment via mobile phones and other convenient services at any of their branded booth anywhere at any time without necessarily visiting their banking halls. These booths perform such functions as you walk in to do your mobile money transactions. It enabled customers to pay their water and electricity bills, refuse collection bills and even made enquiries on one’s personal account.
THE TRANSITION
The brand name Union savings and loans bank played a significant role in driving the strategic growth of the firm. In view of transitioning from a savings and loans industry, “tier 2” bank, to a universal banking industry, “tier 1” bank, the company needed to change its name to reflect who they are and being mindful of their philosophy as being a trusted and valued financial partner. Thus, the new brand name OMNIBANK that also exemplifies the core values. The objective of this transition: is to have a seamless rebranding which connects their successful past to their current status and then to the future. The new brand logo is made up of two components– the icon and the company name. The icon has some elements from the Union logo which is the power switch and then the O from OMNIBANK. The O is also a universal symbol which represents “all or totality or wholeness”. The company name ‘OMNI’ is derived from a Latin word which means all and every. So these two items put together represent OMNIBANK. Thus, OMNIBANK simply means bank for all, bank for everyone, all in all bank and a limitless bank.
NEW VISION, NEW DIRECTION, SAME MANAGEMENT
NEW VISION, NEW DIRECTION, SAME MANAGEMENTVision plays a vital role in steering the affairs of every organization. The success of any organization is inherent on the vision in place. The vision of Union Savings and Loans Ltd., “to be among the three top savings and loans companies by 2015 and a dominant universal bank by 2017”, admittedly became the driving force for the firm’s success before the transition.
Hence, in switching to OMNIBANK, the firm took recognizance of the power of vision and as such postulates its new vision as: “to be the No.1 bank for entrepreneur development in Africa, creating value for our customers, our employees, our communities and our shareholders”. With this vision in view, the firm is positioned to become the substantive bank for supporting and driving entrepreneur development across the continent of Africa.
This, notwithstanding, poses a great task ahead for the firm as Africa is seen to be the next destination for economic boom and entrepreneurial upsurge. Having acquired enormous experience in dealing with the SME sector from which it originated as Union Savings and Loans Ltd. – to respond specifically to the business needs of the Ghanaian entrepreneur, OmniBank is carefully positioned to better understand the operations of entrepreneurs who apparently are within this sector, SME.
OmniBank, through its predecessor, Union Savings and Loans Ltd., is known to be an adventurous firm that dares where no other company wishes to. This has carefully shaped the firm to achieve its tremendous success story today, after its rebranding and restructuring strategy. In going forward, OmniBank is determined to support the SME sector and entrepreneurs by providing the necessary funding required to bolster business growth in the country and the continent as a whole.
Despite its transition from a savings and loans institution to a universal bank, OmniBank remains under the same ownership and there shall be no change to its brand networks, products and services or the management structure as the result of the name change. The bank considers the dynamism in the industry globally and as such, it is also evolving to serve its clients better.
PRODUCTS AND SERVICES AS A BANKING INSTITUTION
As it commences its operations as a full banking institution, OmniBank is expected to differentiate and define its market by developing products and services that shall be appealing to consumers. The banking industry in Ghana is inundated with various products and services that makes some banks lead in some operations. As a result, to carve a niche in the industry, OmniBank is introducing an innovative product on the OmniBank Mobile Banking platform called Freedom. Why freedom? The question begs asking: “Freedom because we believe you don’t need to be limited doing your financial transactions. Freedom because you don’t need to be bound by where you are to have access to your banking information. Now with freedom mobile banking, you have the opportunity to access your account on the go just at your fingertip”, Mr. Harrison Ahorgba clarified.
With this platform one doesn’t need to bother about how much it will cost to transfer money from his/her wallet to his/her account. With one’s initial account opening deposit, all transfer transactions from the mobile wallet to the account are borne by the telecommunications firms. Another platform the firm considers enhancing, is more remittance platform. The firm intends to increase its coverage and reliability in the offering of mobile money services as well as maximizing the internet platform that is very simple and secured to be able to pay bills, school fees, buy airtime, transfer money to loved ones and above all have the convenience of getting to know what happens to one’s personal account. For existing customers, the firm assures them of better services and for prospecting customers, they are assured of high quality services experience. The company intends to expand its SME platform and make sure that every customer and even non customers can benefit from the quality training they offer. “We want to build capacity of businesses. We want Ghanaian businesses to outlive and outgrow their owners. We want them to grow beyond the borders of Ghana. We want them to be the high fliers in the coming years as other countries have done”, Mr. Dominic Donkor, Head of Business, emphasized.
NEWNESS OF OPERATIONS
The transitioned Union Savings and Loans Ltd., OmniBank has assured its customers to expect a more rapid service delivery as a result of the massive investment in technology the company has undertaken as well as higher level of products designed. The firm’s new status enables it to perform transactions that formerly were banned from its operations such as offering foreign transactions but currently, in its new status, has the mandate to perform all transactions including forex transactions.
5YEARS FROM TODAY…
In the next three to five years, the firm intends to grow its non-portfolios significantly to more than GHc 2billion. More than 80% of this will be targeted at SME customers who are the backbone of the economy and who provide more jobs to the many teeming youth in the country.
STRONG ASSURANCE OF SOLID PARTNERSHIP
Having been operating for over 25 years, OmniBank– the transitioned Union Savings and Loans firm, exhibits a symbol of stability in the financial sector. This simply denotes that considering its consistency in operations over the period, everyone can trust the firm as a credible banking partner to deliver the best of products and services through its understanding of the Ghanaian market.
Mr. Philip Oti-Mensah CEO, OmniBank Ltd.
I will like to welcome everyone to OmniBank. We used to be a savings and loans company and now we’re a bank and we’re happy that we’ve come this far with your support. Now we do understand that most of you have experienced different banks. Currently, we have about 30 banks in the country and you’re probably not happy with the services of your bank. I assure you that when we say we’re coming into the banking sector with a difference, we really mean it as we’ve always done even as a savings and loans company, chalking many successes resulting to about 10 awards within a space of two years. Now we’re coming into the banking sector with two main concepts that will make banking very easy and simple and less expensive for everyone. First we’re coming with a concept called the “free bank account for all”. What this simply mean is that, you open an account, you run the account for free: no maintenance fees, no charges, no commission on turnover, your current account is absolutely free. The second concept we’re entering the market with is “convenient banking for all”. What this means is that, unlike some of our competitors, you open a bank account, we set you up on mobile banking platform for free; it means you can do all transactions, pay your bills, transfer money from account to account for free and we promise that this is going to be an exciting banking experience for you”, Mr. Philip Oti- Mensah, CEO, OmniBank Ltd. guaranteed.