Accion MFB Shaping a Bright Future through Digitization for her Customers and Stakeholders

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Thursday, August 06, 2020 / 02:40 PM /Accion MFB /Header Image Credit: Accion MFB


 

Accion Microfinance Bank Limited, held her 14th Annual General Meeting (AGM) for the 2019 financial year on Tuesday, August 4th, 2020 by 12:00 pm. This year's AGM was teleconferenced from the boardroom of the company's head office at 322A Ikorodu Road, Anthony, Lagos State.

 

In line with compliance to the regulatory guideline for measures to curb the spread of the novel coronavirus, the crucial caucus was virtually held and concerned parties were communicated with access to join the AGM.

 

Accion Microfinance Bank has stood out in its operations and remained a leading microfinance institution with over ninety (90) branches and cash centers in five (5) geo-political zones in Nigeria.

 

In line with the vision of the bank to be the market leader in the provision of microfinance and related financial services at world-class standards, Accion MfB is bound by the core values of integrity, customer service, leadership, innovation, and teamwork. The bank has been in operation: offering quality financial service and solutions to the financial needs of individuals, businesses, and corporate entities since its inception in 2006.

 

During the meeting, while announcing the result for the 2019 financial year, the chairman of the board of directors: Mr. John Fischer supported by the MD/CEO Accion Microfinance Bank: Mr. Taiwo Adesina Joda, and other board directors declared that the number of active burrowers grew by 18.2%, loan portfolio had a rise of 15.4%, deposit accounts increased by 13.5%, the number of savers recorded a growth of 3.9% and customers deposit increased by 42.8% growth. He further mentioned that due to the heavy investment in digital optimization in the said financial year, the bank had a lower profit after tax of N915 million as against the N1.05 billion recorded in 2018. He affirmed his confidence, that the investment in digital transformation would yield the desired impact on the business.

 

Mr. Fischer, was happy to announce that shareholder's fund grew to N5.24BN in 2019 resulting in a 12% growth. With this feat, Accion MfB has crossed the new capital base of N5Bn for a national microfinance bank.

 

He rounded up his statement by itemizing activities of the bank concerning the economic environment, regulatory environment, leveraging on technology, corporate social responsibility, our people, and future outlook of the bank.

 

Communicating the performance of the bank for the year, the MD/CEO, Mr. Taiwo Joda highlighted the significance of the year as it relates to deepening the financial inclusion drive. He stated, "the year ushered in a series of new business directions and corporate focus - all pivotal the achievement of the financial inclusion goal of the bank. He further mentioned the progress made on some key imperatives such as the boost in our national expansion drive as a licensed national Microfinance Bank with our presence in Kano state".

 

He further emphasized the significant event that shaped the operating environment during the year under review which was the global and domestic economic review. He added the bank increased her outlets from 80 in 2018 to 93 in 2019 and deepened our reach to the bottom of the pyramid as we grew our active customer base by 18%.

 

He highlighted that loan disbursed for the 2019 financial year totaled to N26.8 billion above the N23.22 billion which indicates a 15.6% growth. The cumulative number of loans disbursed closed at 522, 303 from 440, 406 in the previous year. Finally, he mentioned the total loans disbursed as at the end of the 2019 financial year from inception of the bank was N131.3 billion.

 

On the gross earnings of the bank, Mr. Joda stated an increase in 15.3% of N6.1 billion over the 5.3 billion earned in 2018. He itemized a significant improvement in the portfolio at risk (PAR) of the bank. The PAR closed for both PAR>1 and PAR>30 at 8.7% and 6.6% respectively as against 10.5% and 7.1% of 2018.

 

With regards to the digital journey, Mr. Joda reiterated that "we issued a total of 31,382 debit cards in the year and 27,042 were activated on our various channels. Cumulatively, the number of ATM cards issued to our customers closed at 104,150 as at December 2019 compared to 72,768 in 2018. The bank grew in banking agents from 340 in 2018 to 539 agents in 2019. Our digital channels in 2019 included USSD, Debit Cards, Mobile Banking App, NIP, Agent banking. Our call center was remodeled and repositioned to improve customer experience".

 

Focusing on the future, the MD/ CEO indicated that the Bank has supported and will continue to support her customers and stakeholders during the pandemic towards the actualization of their holistic financial aspirations. He further emphasized on the actualization of the digital transformation journey. "Our direct sales agency deployed in 2019 will be sustained.

 

The Bank will continue to afford the needed support to her staff by providing the needed work tools and enabling environment to support customers on their life's journeys and will be intentional about having human-centered solutions while shaping a brighter future through digitization.


 

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