How Banks are Transforming Lives in Nigeria

Commercial Banks in Nigeria serve as a means through which Nigerians save money, pay funds, get loans, and subscribe for services. They are linked with debit cards, more known as ATM Cards, which can be used on an Automated Teller Machine (ATM) to withdraw funds and perform transactions, and also to pay for items online via payment gateways such as Interswitch Webpay, Paystack, Flutterwave, eTtranzact, and Remita.

Commercial banks play an important role in the financial system and the economy. As a key component of the financial system, banks allocate funds from savers to borrowers in an efficient manner. They provide specialized financial services, which reduce the cost of obtaining information about savings and borrowing opportunities. These financial services help to make the overall economy more efficient.

Banking in Nigeria includes the Central Bank of Nigeria (CBN), along with commercial banks such as First Bank Nigeria and Asset Management Corporation of Nigeria (AMCOM).

How Banks Work

Banks operate by borrowing funds – usually by accepting deposits or by borrowing in the money markets. Banks borrow from individuals, businesses, financial institutions, and governments with surplus funds (savings). They then use those deposits and borrowed funds (liabilities of the bank) to make loans or to purchase securities (assets of the bank). Banks make these loans to businesses, other financial institutions, individuals, and governments (that need the funds for investments or other purposes). Interest rates provide the price signals for borrowers, lenders, and banks.

Through the process of taking deposits, making loans, and responding to interest rate signals, the banking system helps channel funds from savers to borrowers in an efficient manner.

Guaranty Trust Bank (GTBank) is a bank that prides itself as a foremost Nigerian financial institution that fosters a culture of openness in which healthy debate is encouraged. Over the last two decades, the bank has grown from strength to strength thus making it a preferred institution for young Nigerians who aspire to become seasoned bankers. It has a wide range of services for customers in all situations. Banking can be carried out online via Internet Banking, Mobile App, and GSM phones via Unstructured Supplementary Service Data (USSD).

To Resolve Financial Problems among Customers, GTbank introduced QuickCredit , a time loan (6 – 12 months) accessible to Salary and non- salary account holders, which gives funds up to N5million at an interest rate of 1.75% monthly.

In order to encourage customers to use their services, banks occasionally offer rewards to those that meet a pre-set benchmark. Ranging from consistent savings, regular purchases, and account opening. There are several rewards offered by major banks in Nigeria. First bank, for one, had a promo, XploreFirst Promo, which was from October 1st 2018 to March 31st, 2019. 18 XploreFirst account holders between the ages of 18-29 had won scholarship awards. Information about Bank offers can be obtained from the Bank’s Website, Social Media Handles, and Customer’s Service(Email or Phone).

Bank SORT Codes / SWIFT Codes

Swift Code is a standard format of Bank Identifier Codes (BIC) and it is unique identification code for a particular bank. These codes are used when transferring money between banks, particularly for international wire transfers. Banks also use the codes for exchanging other messages between them.

The Format of SWIFT Codes is given below:

AAAA BB CC DDD

• First 4 characters – bank code (only letters)
• Next 2 characters – ISO 3166-1 alpha-2 country code (only letters)
• Next 2 characters – location code (letters and digits) (passive participant will have “1” in the second character)
• Last 3 characters – branch code, optional (‘XXX’ for primary office) (letters and digits)

The Swift code consists of 8 or 11 characters. When 8-digits code is given, it refers to the primary office.

SWIFT codes for major banks in lagos are as follows:

Anyone transferring money across international lines nearly always needs to use a SWIFT/BIC code, since it’s the way banks and money transfer services identify where to send money on a global scale. You can think of a SWIFT/BIC code a bit like an international postal code so that a bank on one side of the world finds the right bank on the other side of the world. Just like sending mail to a wrong zip code means it may get lost or returned, the same goes for your money and incorrect SWIFT codes. It is Advised to Contact the Commercial Bank before registering a SWIFT Code obtained over the Internet.

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