The Bank Expansion Strategy And Management

1354 Words6 Pages
Beta is a “new generation banks” in Nigeria, incorporated in 1990 and commenced operations in 1991 as a private limited liability company. The bank evolved and witnessed a rapid growth to attain the universal banking status in 2001 as a result of a policy of deregulation in the Nigerian banking sector allowing Nigerian banks to operate foreign subsidiaries. The same year Beta became the first Nigerian bank to establish foreign retail banking subsidiary in the region to respond to the bank 's customer’s needs in the ECOWAS region, particularly in WAEMU. Especially as it had been, the strategic goal and management vision of BETA to established foreign subsidiaries in various countries, to support Nigerian businesses abroad (BETA_g2…show more content…
As illustrated by the bank Executive:

… actually when the shareholder 's fund of Nigerian banks moved to N25 billion... we also embark on recapitalisation moving our shareholders from 2 billion to 25 billion and in the process too, we also acquired another bank… to join us to also increase not just beyond our capital base but also increase our network as we tried to emerge as a leading retail bank in Nigeria (Beta_g2 December 2015)

Subsequently, with the successful recapitalisaion programme and the acquisition of another bank in 2005 and equity increased, the bank embark on rapid domestic expansion as the competition in the sector intensified in the domestic market. With the increased capital the bank growth strategy was to diversify their operations into new business areas to strengthen their market positions at home and abroad as explained by the interviewees: With the additional capital that the bank brought from the recapitalisation program, it also strengths our ability to expand our business beyond our first point of call which was Benin ((Beta_g2 December 2015). The bank expansion strategy is enhanced specifically through its business and retail banking strategy for example the strategy entails the
Get Access