Intercontinental Bank ventures into Micro finance
September 24, 2008 by ella
BLUE Intercontinental Micro Finance Bank Limited, a partnership product between Intercontinental Bank Plc and Blue Financial Services of South Africa, has commenced operations in Nigeria.
Speaking during a press briefing in Lagos recently to formally announce its commencement, the Group Chief Executive Officer of Intercontinental Bank Plc, Dr. Erastus Akingbola said the Micro Finance Bank is coming to market with a capital base of N3 billion.
Akingbola, who was represented at the occasion by an Executive Director of the Bank, Mr. Olayinka Adebiyi, said Intercontinental ventured into microfinance business in order to reach out to the informal sector, which is highly untapped.
He said the platform of Micro Finance Scheme could be used to empower the people, stressing that the overall objective is to develop the latent capacity of the people for entrepreneurship, mere used employment, create health, enhance household income and make them self reliant.
According to the Intercontinental boss, there was a huge window of opportunity in the Micro Finance sub sector, especially, with the emphasis government places on poverty alleviation.
He said with the technical expertise and wealth of experience of Blue Financial Services, the number of Micro Finance company in Africa, Blue Intercontinental Micro-Finance Bank was poised to bring micro finance to another level in the country.
He, however, formed at the present operations of Micro Finance in the country, stressing that they are not making the desired impact as traditional savings mobilisation strategies like Esusu and Ajoo are still very dominant in the country.
“For Micro Finance to succeed in the country, operations must deviate from the current wholesale application of traditional banking model. This makes access to funds cumbersome for micro borrowers and exposing operators to immitigated risk,” he stated.
Speaking also at the unreeling, the Chief Executive Officer of Blue Financial Services, Mr. Dave Van Niekerk said the new venture wil enable Blue to tag into the potential of a largely embarked market and loverage off the progressive reforms in the financial services sector
