Olajide Ayeronwi

TBY talks to Olajide Ayeronwi, Managing Director & CEO of First Bank DRC, about reducing the unbanked population, opportunities for foreign investors, and trends in the financial sector.

One of the biggest challenges for the expansion of the financial sector in the DRC is reducing the unbanked population. How is FirstBank addressing this problem?

We at First Bank DRC have developed several strategies to reduce the unbanked population. In addition to implementing programs to educate people on banking services, financial literacy, and continuously highlighting the benefits of being banked, we have opened branches in far-flung locations in the hinterland while engaging with local leaders and communities in developing solutions to ensure the services we offer meet the specific needs of the population. In addition to the above, we have expanded our mobile banking services to reach rural and underserved populations, offering easier access to financial services without the need for traditional bank branch, what we call our agency banking service. Today, there is hardly anywhere in the entire country where one cannot find First Bank as we have close to 7,500 agents.

Does FirstBank have any plans for digital expansion?

We have developed several products as well as leveraged on First Bank group digital strength to address digital expansion that we have deployed via our Ebusiness department. We are offering a robust and user friendly mobile banking application that offer a range of services, including account management, transfers, bill payments, etc. In addition to the aboce, we have leverage on the USSD technology for customers without smartphones, allowing them to access banking services with basic mobile phone. These tools all allow our customers to open bank accounts at a distance making it less cumbersome than conventional account opening. We are also pilot testing a e-wallet which we are aiming de deploy shortly. Our focus on digitalization allows us to better service our customers while ensuring the highest level of protection of their data and information.

Does FirstBank have specific products or opportunities for international clients or investors in the DRC?

First Bank DRC offers various products and opportunities for international clients and investors, which includes foreign currency accounts, investment services, trade finance solutions, advisory service, corporate banking solutions, and many more services tailored to our clients needs. As you may know, we are an international bank with presence across Africa, including Nigeria, Ghana, Senegal, Gambia, Guinea, and Sierra Leone. We also have a subsidiary in the United Kingdom and representative offices in Paris and in China. Our footprint in different countries is allowing us to better cater to our clients operating in different countries while allowing them to access our services no matter their geographic location. We have a dedicated diaspora banking team which have significantly grown at our group level as well as our UK Subsidiary, we are therefore aiming to further grow this segment of clientele at FirstBank DRC. Our services to international clients also include private banking and wealth management wherein we offer advisory in terms of opportunities not only in the local market, but also internationally; we are even able to purchase eurobonds on behalf of our clients. Lets remember that FirstBank Group is a commercial enterprise of FBN Holdings, which includes entities such as FBNQuest, merchant banks, and others entities under its umbrella. For instance, if there a client in the DRC is seeking to go public to raise funds, we can assist them with a listing on an international market through a subsidiary of our group based in Nigeria, or in the UK for example.

What major projects is FirstBank currently financing?

First Bank DRC has financed projects in different sectors such as infrastructure development, mining and natural resources, energy, consumer, telecoms, etc. A recent example would be in the Mining sector where we have participated in several mining projects where we have made large investments in key strategic mining projects. As you may imagine, the ticket size for mining projects may go beyond the reach of one single bank; however, through syndications, we have been able to finance the expansion phase of one of the planet’s largest mining entity. In this specific situation, we were able to include some of our partnering financial institutions not present in DRC. Besides direct or syndicated financing, mining companies have benefited from our services and expertise.

FirstBank and a few other major banks recently agreed to help finance the government’s oil debt at over USD120 million. How does this act of goodwill reflect cooperation between private and state actors in the financial sector?

The agreement between First Bank and other major banks to finance the government oil debt demonstrates a commitment to working together for national economic stability, highlighting the importance of collaboration in addressing public financial challenges. The government was seeking support from banks to subsidize products from oil producers bringing in products into the country, and four major banks—FirstBank, Equity Bank, Eco Bank, and Standard Bank—came together. In the first phase, FirstBank was a major contributor, in fact only second to Equity in terms of contribution. This contribution demonstrates the fact that the financial sector is in perfect synergy with the government which signals alignment with national economic policies and priorities, reinforcing the role of the financial sector as key stakeholder in the country’s development. FirstBank has participated in almost every Ministry of Finance initiative, as we has not only financed the government oil debt, but also several other significant government projects for which due diligence have been conducted and have met our risk acceptance criteria. This mutual reliance strengthens relationships between the state and financial institutions, thus paving the way for future collaboration on development projects and financing needs.

The country uses the dollar, banks are cooperating, and the government does not cause a problem. What would you say missing in the financial sector?

In the financial sector of the Democratic Republic of Congo, despite the cooperation among banks and a stable currency environment, several key elements may still be missing: Financial inclusion as initially mentioned, as a significant portion of the population remains unbanked or underbanked, limiting access to essential financial services. Investment in technology, greater investments in fintech and digital banking solutions is key to improve accessibility and transactional efficiency. Enhancement of risk management tools to assist financial institutions manage risks efficiently, scoring tools or “Central de Risques” would be greatly beneficial to financial institutions. Additional funding capacity to allow financial institution to further contribute to the development of various sectors of the economy with higher amounts and longer tenors.