Pioneer underwriting firm, Royal Exchange plc, has been granted approval-in-principle by the Central Bank of Nigeria (CBN) to operate a microfinance bank in the country, a move that is expected to deepen access to financial services by the informal and under-banked segments of the economy.  Having satisfied all the statutory requirements for the opening of a microfinance bank, Royal Exchange was granted approval by the CBN recently and is currently making elaborate preparations towards a commencement of operations in the next few months.

The new venture, the first by an insurance company in the country, according to Allan Walmsley, the company’s Group Managing Director, is in line with the company’s mission of evolving into one of the leading financial services firms in the world over the next few years.

According to Walmsley, the vision of the Group is to become a world-class operator by 2012. “That vision has seen us strategically restructure our operations while a comprehensive and integrated rebranding project also is currently underway.”

Other components of Royal Exchange’s strategic direction, says Walmsley is to “include ongoing technology upgrades, human capital development, risk management, product enhancement and diversification, etc. We will also be positioning ourselves to be a major insurer in the oil and gas sector, and we also envisage a number of strategic acquisitions to assure our future in the non-banking, financial services industry.”

The new micro finance bank will significantly enhance access to banking and financial services, especially to millions of people in the lower income targets and the rural areas, and in so doing, contribute to deepening the growing impact of Nigeria ’s financial services industry.

Having made a name in corporate Nigeria as the country’s premier insurance company, Royal Exchange is expected to deploy experience spanning over 90 years to nurture the new venture into a resounding success. For instance, the microfinance bank will be powered by robust technology to offer real time online banking and to offer an efficient banking service that guarantees safety, security and integrity of the entire banking operation system.

“Technology alone has never been known to deliver success in any organisation and as such we have engaged the services of some of the best hands in commercial banking and specifically, in microfinance banking in the country. We have invested substantially in manpower training and will continue to train and retrain in order to keep our best hands”, added Walmsley

One critical competitive edge which the new microfinance bank will enjoy is the wealth of financial knowledge with which it will be availed by the Royal Exchange Group. A long-established and virile financial services group, Royal Exchange is a repository of immense experience and expertise in financial services, all of which will be deployed to help ensure that the new microfinance bank quickly attains market leadership, concluded Walmsley.

Royal Exchange is a leading Insurance company established in Nigeria: http://www.royalexchangeplc.com