UBA CONVERTS PANDEMIC TO ADVANTAGE

 

 

 

UBA CONVERTS PANDEMIC TO ADVANTAGE

Managing Director and Chief Executive Officer of the United Bank for Africa Sierra Leone, Usman Imam Isiaka says the UBA turned the misfortunes of the Covid-19 pandemic to advantage with the bank weathering through the storm healthier and stronger.

Making the disclosure during a recent exclusive interview in his office in Freetown, Mr. Isiaka explained that the feat was recorded courtesy of the ingenuity of the UBA Group Chairman Tony Elumelu.

Explaining how the bank could have performed such a rare feat at the time most of the world was reeling from the painful negative impacts of the pandemic, the bank boss notes that “First of all, I would say it’s due to the amazing visionary leadership qualities of our Group Chairman, Mr. Tony Elumelu, MFR and his uncommon giant heart for philanthropy and focus on the socio-economic wellbeing of the African continent.”

Mr. Isiaka’s passion for banking, finance, and investment turned the interview with the Newday Magazine team into a compelling lecture for those in the industry and policymakers in both government and other areas of human endeavour.

READ ON!

 

2020 was a difficult year for businesses all over the world due to the Covid-19 Pandemic. How did UBA Sierra Leone weather the storm?

Thank you for coming and it’s a pleasure to have you around.

As you rightly noted, the year 2020 had been quite challenging globally. The pandemic has had a serious impact on economies everywhere.

Sierra Leone is one of the countries in West Africa that is currently grappling with the COVID-19 global Pandemic. On 31st March 2020, the Ministry of Health and Sanitation reported the country’s first case of COVID-19. Since then to date, the country has recorded over 4000 positive confirmed cases with over 80 deaths and over 3,400 cumulative recoveries according to a status updates from the National COVID-19 Emergency Response Centre in Freetown dated 26^th June 2021.

The numbers must have increased with the advent of the third wave.

Specifically, on measures undertaken by the bank to Keep Safe and weather the storm of Covid-19, I will say the ability of UBA to keep up with sterling financial performance in 2020  despite the negative impacts of the pandemic on businesses derive largely from the following 5 pillars:

1. Development of UBA Covid-19 Risk Management Framework adopting both the in-Country and Global Best Practices Initiatives to prevent the debilitating health hazard of the Corona Virus Pandemic on our staff and visiting customers. These included regular washing of hands and social distancing among both customers and staff. Checking of the temperature of people entering the bank including work rotation among staff to reduce crowd. This framework was put in place in all the 23 countries UBA is operating and not just Sierra Leone even though we domesticated it to align with the regulations of the individual countries. I am happy to report that UBA Sierra Leone recorded zero cases of Covid-19 infection among all its staff and there is also no known case of any of our over 130,000 customers contacting the deadly virus.
2. People are curious in terms of the positive impact it had on our business. First of all, I would say it’s due to the amazing visionary leadership qualities of our Group Chairman, Mr. Tony Elumelu, MFR, and his uncommon giant heart for philanthropy and focus on the socio-economic wellbeing of the African continent as reflected by the following steps taken that dovetailed into exceptional financial performance of UBA Sierra Leone and the UBA Group at large despite the Covid-19 Pandemic:
   1. Donation of the sum of $14m to the governments of all the 20 countries where UBA is operating in Africa through the UBA Foundation, the corporate social responsibility entity of UBA to fight the Covid-19 pandemic. Specifically, the sum of $150,000 was donated to the Government of Sierra Leone by UBA. The payback positive impact of this philanthropic gesture of the bank on our business across various countries was phenomenal. For instance, in Sierra Leone, the Government in appreciation of the donation also gave the Nacoverc Operational Account to UBA and we also got the opportunity to issue Letter of Credit for the importation of all the Covid-19 scanning equipment that were installed across all the entry/border points in the country by our customer, Securiport LLC of USA, a global giant in border security systems.
   2. Added to that, UBA as a group also embarked on Corporate Renewal or what I will rather call Corporate Rejuvenation initiatives by the Group to review and revalidate our 2020 Business Plan, Strategies and Budgets through a pragmatic SWOT Analysis of our Strength, Weaknesses, Opportunities, and Threats posed by the Covid-19 pandemic which led to a surprising upward review of our budget, some structural changes, redeployment of 14 Country CEOs to avoid corporate complacency, focus on emerging opportunities and ensure ruthless execution of the agreed initiatives to combat the possible negative impact of Covid-19 on our business. We also reviewed our processes for improved automation and digitalisation of our products and services with a renewed focus on Customer Service Excellence across the group. The upward reviewed financial budget and the redeployment of several CEOs, including myself from UBA Tanzania to Sierra Leone became a source of challenge to explore every available opportunity to deliver superior returns amidst the Covid-19 pandemic.
   3. Harnessed the benefits of the bank’s pre-covid huge investment into Technology and digital Banking products. Specifically, the UBA Leo Chat Banking which was the first of its kind in the continent provided customers opportunities to do their banking transactions online in real-time by chatting with Leo on both WhatsApp and Facebook Messenger with fun just as they chat with friends.
   4. Development of new products and services; indeed UBA Sierra Leone launched a total of 6 retail liability products into the market during the second half of the 2020 Financial Year to take advantage of the emerging business opportunities and regulatory changes. For instance, the bank introduced the UBA Sharp-Sharp and UBA Next Level Low KYC savings accounts to take advantage of the commendable Bank of Sierra Leone (BSL) Regulation on Tiered KYC aimed at banking the unbanked/under-banked and increase the financial inclusion ratio in the country.
3. The Pragmatic actions of the Government of Sierra Leone under the impressive leadership of His Excellency Retired Brigadier Dr. Julius Maada Bio and the Governor of Bank of Sierra Leone by instituting various Covid-19 control measures and socio-economic palliatives well ahead of recording the first index case of Coronavirus victim in the country to curb the negative impact of the pandemic on the economy.
4. UBA Group support to the Government of Sierra Leone in providing millions of dollar Foreign Currency Facility to augment the financial spending requirement of the government to stabilize the economy against the negative impact of Covid 19. The bank also invested millions of dollars into the Zero Coupon Foreign Currency Bond issued by the Government to facilitate payment of contractors to keep their business afloat amidst the Corona pandemic.
5. Renewed focus on our Vision of becoming an undisputed, leading, and dominant financial service institution in Africa driven through our 3Es Core Values bordering on Enterprise, Excellence, and Execution.

Other measures:

• Drives a well-structured product marketing of our digital banking products and services
• We increased our media engagement in the promotion of our Digital Products. UBA digital products enable customers to conduct a range of retail e-products services that allows customers to conveniently access their bank accounts information and do banking transactions via UBA Website and mobile phones, laptops at the comfort of their homes anywhere anytime. Some of the services include:
• U-Connect
• Leo
• Push and Pull (Orange Money Wallet)
• Internet Banking
• PoS
• Mobile App
• Afri-Money…
• Issuance of Free Master and Visa Cards to customers to enable them to access their cash via various ATMs across the country.
• Improved on our turnaround time with respect to response to customers complaints and enquires on our services. We provided in-house training by the Marketing and Corporate Communication and other Departments on our products and services for staff to ensure a delightful experience at every point of interaction with our customers under our new CX (Customer Experience) initiative.
• Built staff capacity to have adequate knowledge in responding to customer’s complaints on the use of our products and services.
• Mandatory use of nose masks by staff and customers. FACEMASK BEFORE ENTRY OF THE BANK. Branch Managers ensure that security guards enforce this.
• Hand sanitizers were placed at the mantrap door area and ATM gallery.
• Handwashing with soap is made compulsory for both staff and customers before entering the banking hall.
• Frontline staff e.g.  (Tellers) wear hand gloves and facemasks all the time, especially when handling transactions with customers.
• Not more than 20-25 customers are being allowed at any time in the banking hall as part of the enforcement measures from the Government.
• We continue to encourage our staff and customers to abide by these measures, as we provide excellent services to our valued customers. The Control Department is charged with the responsibility to enforce compliance with these measures.

UBA Sierra Leone records sterling performance in 2020 Financial Year

The sum total of the positive impact of all the above measures is that UBA Sierra Leone recorded an impressive sterling performance in the 2020 Financial Year as reflected by the following key highlights.

• 71% Growth in Total Assets to Le1.32 trillion ($129.4 million)
• 65% Growth in PBT (Profit Before Tax) to Le123.7 billion ($12.13 million)
• 54% Growth in Shareholders Funds (Equity) to Le264.13 billion ($25.9 million)
• UBA Sierra Leone won The Bankers Award as the Best Bank in Sierra Leone in the Year 2020.

UBA Sierra Leone received Bank of Sierra Leone (BSL) “No Objection” approval to publish its Year 2020 Audited Financial Statement containing the above highlights as was earlier approved by its Board of Directors on the 17th of March 2021.

The Bank recorded an impressive performance in the financial year with significant improvements across most parameters amidst the challenging 2020 Calendar year characterised by the COVID-19 pandemic.

Specifically, UBA closed the year 2020 with a balance sheet size of Le1.32 Trillion ($129.4m) a growth of Le544.7 Billion ($53.4m) representing a 71% increase from the  Le771.5 Billion ($75.6m) in 2019. This growth was largely driven by growth in deposits from customers. Despite the challenging market situation, the bank recorded growth of 67% in customer deposits to close at Le787.4 Billion ($77.2m) at the end of the year compared to Le 472.5 billion ($46.3m) in 2019 by leveraging on its digital prowess to provide 24/7 service to its customers via electronic channels to defy the Covid-19 constraints.

 

Outlook and strategic focus

Despite the highly competitive operating environment, we leveraged our franchise and deepened our market share across our key focus sectors by increasing our share of existing customer’s wallet while also onboarding new customers. We are particularly pleased with the growth in our retail and corporate deposits which is a testament to our investment in service channels, digital banking offerings, and a renewed focus on superior customer experience across all our contact points.

The growth in retail deposits which is largely a stable, low-cost source of funding, provides further stability to our balance sheet and reinforces a stronger outlook in the years ahead.

Our ability to significantly grow our customer deposits base, total assets, and profitability in such a competitive banking industry is a source of pride. We do not intend to rest on our oars. We will continue to explore opportunities for business growth in the marketplace, devote attention to the execution of several initiatives outlined in our Project Alpha Strategy, leverage on the expertise and strength of our parent company as a leading pan-African bank to drive the attainment of our industry leadership objectives across various parameters in the banking space. We will always strive to deliver superior services to our customers in a sustainable way in line with our CX (Customer Experience) and C1st (Customer First) operating philosophy.

 

What were your corporate social responsibilities?

As the Corporate Social Responsibility arm of the UBA Group, UBA Foundation is committed to the socio-economic betterment of the communities in which the bank operates, focusing on development in the areas of Education, Environment, Economic Empowerment, and Special Projects. The UBA Foundation was incorporated in January 2004. Since the inception of the bank in Sierra Leone in 2008, the UBA Foundation has contributed a lot to the socio-economic development of the country in the following areas:  Education, environmental protection, economic empowerment, and special projects. For this interview let me make some few references.

UBA Sierra Leone CSR supports

• UBA Foundation National Essay Competition 2020– Three (3) pupils won: two (2) from the Sierra Leone Grammar School and One (1) from the Annie Walsh Secondary School a scholarship grant of a total of $10,000 to attend any University in Africa. All the 12 finalists that made it to the finals were given brand-new laptops for their academic studies
• The bank continues to support other educational programmes such as the 2021 International Day of Education. The bank provided $1,000 USD to support the celebration of the International Day of Education (IDE) 2021 through the Sierra Leone National Commission for UNESCO under the Ministry of Basic and Senior Secondary Education on 25^th January 2021
• United Bank for Africa (UBA) donated over Le1 Billion to the Government of Sierra Leone to fight COVID-19

The bank donated One Billion, Four Hundred, and Forty Million Leones an equivalent of ($150,000) as part of the UBA’s Foundation direct relief support to the government of Sierra Leone to the fight against COVID-19.

• Amidst COVID-19, UBA Sierra Leone through the UBA Foundation supported the Ministry of Basic and Senior Secondary Education Distance Teaching Program.

UBA Sierra Leone through the UBA Foundation provided a laptop and literature books through the Read Africa Initiative project to support the Ministry of Basic and Senior Secondary Education online teaching program.  The laptop is being used to stream the online teaching program, live to over 40,000 children across the country.

• UBA Support to the Freetown City Council with 1300 FCC Aprons

As part of the bank’s support to the Freetown City Council, we  procured and provided over 1000 Aprons for the Council as part of the Council’s Cleaning Exercise worth $15,000

• During the mudslide in 2017

The bank donated $500,000 for rescue missions and victims of the mudslide. The bank’s Chairman Tony Elumelu donated USD$250,000 on behalf of the Tony Elumelu Foundation and another USD$250,000 on behalf of UBA.

• Hands off Our Girls

The bank provided financial support to the Office of the First Lady for the launch of the Hands Off Our Girls Project. A campaign that promotes education on sexual reproductive health and rights and the fight against rape in the country.

 

What are the products and services that attract your bank to customers?

The bank’s array of digital banking products, Leo Chat Banking, Mobile App, Internet Banking, UBA Prepaid Card, Orange/Africell Mobile Wallet Push and Pull among others are the major attraction to customers as they provide customers opportunity to do their banking transactions seamlessly online real-time without visiting the bank.

The UBA Connect that provides UBA customers access to their accounts across the 20 countries where we operate in Africa is another major attraction as it facilitates cross-border transactions among traders and travellers doing business within several countries in Africa.

The UBA No Wahala Loan which is our consumer loan for salary earners is another major attraction to customers as it offers a higher single obligor limit of up to SLL500m (about $50,000) and a longer tenor of up to 48 months to borrowers in comparison with what is obtainable in other banks in the industry.

You may want to know our Group Managing Director, Kennedy Uzoka specifically met Mark Zuckerberg the co-founder and CEO of Facebook to customize our Leo Chat banking for ease of use and delightful customer experience on the WhatsApp and Facebook Apps.

 

How can banking advance the development agendas of the country?

Banks are the major facilitators of economic development through their role of mobilizing funds from the surplus segments of the economy and granting the same loans to the deficit segment to create more wealth in the economy. Provision of loans to individuals, small and medium enterprises, commercial and corporate clients also have multiplier effects on the socio-economic development of a country.

Banks can also facilitate the economic development agenda of the government by funding the Budget Deficit or providing specific infrastructural development facilities to support government activities in the areas of power generation and distribution, roads construction and maintenance, school projects among others. I am happy to mention that UBA has been a notable supporter to the Government of Sierra Leone in this area.

Banks are also major employers of labour in the economy and large taxpayers that support the domestic revenue generation initiative of the government. UBA Sierra Leone is undoubtedly one of the top Taxpayers in the country.

Banks support government initiatives in infrastructural development like power, dam, airports construction among others. Power is key. Much depends on electricity. Essentially, UBA is providing funding support to EDSA to ensure they continue to meet their obligations to the power generating companies. We also provide funding support to other institutions including a university in the country to help them cope with the adverse effects of the pandemic.

UBA even provided the government lending support in millions of dollars during this same era.

 

Conclusion

Let me use this opportunity to thank our esteemed customers for their loyalty and continuous patronage that contributed significantly to the sterling performance recorded by the bank in 2020 despite the Covid-19 pandemic; and the Board for their unceasing support that is a source of encouragement to all staff and management of the bank in our journey towards making UBA Sierra Leone the undisputable leading and dominant financial service institution in the country.

 

Tell us about yourself.

My name is Usman Isiaka. I am the MD/CEO of this bank. I have been with the bank for 21 years. My experience in the bank cut across various areas. I have worked in 20 out of the 23 countries where UBA operates. I have worked as headgroup Director of Internal Control, Deputy Group Chief Inspector, Deputy Managing Director UBA Ghana, and Managing Director/CEO of UBA Tanzania before my posting to Sierra Leone last year. I am happily married with children.