The Managing Director and Chief Executive Officer of Citibank Nigeria Limited, Mr. Omar Hafeez, has advised Nigerian banks to respectively develop niche markets so as to have competitive edge in the industry.

Hafeez gave this advice in an interview with THISDAY in Lagos on Wednesday. He stressed that a bank should not be everything to everybody, saying that banks must identify their strength and target market.

The Citibank boss said: “I think that there is definitely a categorisation between the very large banks in Nigeria and the relatively small banks in Nigeria. I think banks would have to ensure that they have a niche that they play. I don’t think banks would have and can be everything to everybody because the big banks would dominate as they have the brick and mortal presence which makes them very well placed to take advantage of opportunities.

“So I think each bank needs to identify who it wants to be and to play to those strengths and I think as long as they do that, it would be good for them. I think the competitive landscape would change, not only because of the three banks (Keystone Bank, Enterprise Bank and Mainstreet Bank) that would be back in the market, but also for others that are now looking for entry into Nigeria.

“So I think it would be a more competitive landscape which goes back to my first point which says you better know who you want to be and what you want to play at, otherwise you get marginalised. If your focus is purely to be on the top tier, it would get over-banked. So you must identify your niche and play to your strength. Generally, I think the banks are in good position to take advantages of the opportunities that would come up.”

Commenting on the reforms in the banking sector, Hafeez argued that the financial institutions were now out of the crisis that had plagued the industry. According to him, banks are now stronger both from a capitalisation point of view and also in terms of governance.

This, he argued had trickled down to every part of the industry, adding that risk management policy; compliant standards have also been strengthened.

Responding to enquiries on the qualities whoever will succeed the present Governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi, next year should posses, he said: “As far as the central bank is concerned, I believe it has played a huge role in the banking sector. I think anybody that comes at the helm of the central bank; one would expect that the policies are so well ingrained into the policy framework of the central bank. I would say that we would expect the sustainability of policies.”



http://www.thisdaylive.com/articles/nigerian-banks-must-create-niche-markets-says-citibank-ceo/151757/