Access Bank over the last twenty years has built a strong financial institution through a disciplined approach to executing its strategy which has produced market beating results consistently and has been value accretive. The institution has transitioned to a Holdco with 5 verticals to capture the opportunities the African market provides as the landscape evolves over the next few years.
Now trading as ACCESSCORPS on the floor of the Nigerian Exchange, the financial giant has published its Corporate Strategy for 5 years between 2023 and 2027.
The HoldCo structure of the financial institution has been transitioned into 5 subsidiaries:
- Bank (Retail, commercial, corporate banking)
- Oxygen (Consumer lending & agency banking)
- Hydrogen (Payment & switching services)
- Insurance brokers- (Insurance brokerage)
- Pensions (Asset management and pension fund administration)
Access Corporation’s footprint is targeted to grow significantly in the next strategic period. The Holding Company stated thus:
“We will capitalize on our strong M&A capability and ability to build organically to create value with each expansion, prioritizing countries with better sovereign rating and complementary business landscape
Our Africa expansion is bolstered by presence and entry into key global financial hubs
Our Africa strategy is supported by our presence in key international markets which enable us to:
- Diversify our earnings away from the volatile operating environments in Africa
- Orchestrate operations as a global payments gateway
- Manage our risk and exposures to soft currencies
- Enhance our profitability without excess risk
Access will gain relevant scale across Africa, global monetary centers and beyond-banking verticals, diversifying its business
- Increase profitability as Access drives scale and gains relevant market share and takes advantage of developing economies of scale
- Drive customer penetration at a lower cost base by leveraging technology and data to digitize and personalize customers’ experience
- Diversify franchises to high-growth, more mature and markets with better ratings to reduce risk in primary country
- Build full-scale beyond banking ecosystem across prioritized verticals
- Refine orchestrator role to enable growth of the HoldCo and OpCos (Bank, Hydrogen, Oxygen, Pensions and Insurance Brokers)
- Democratising Banking services – critical for Banking services provision over the next 5 years”
Access Corporation 2027 Outlook by Geography
“By 2027, we expect the Nigeria Bank to be contributing c.52% of revenues compared to c.82% (9M’22). The new verticals will also be contributing c.12% of total revenues , as revenues from African Subsidiaries is expected to double over the next 5 years. PBT contributions from Nigeria Bank is expected to reduce from c.63% (9M’22) to c.33%, while the new verticals are expected to contribute c.19% of the profitability by 2027, while African Subsidiaries will contribute c.20% as our footprint grows across the Continent”.
Access Corporation 2027 Outlook by Business
“By the end of 2027, we expect to be in at least 26 countries and in at least 3 Organization for Economic Co-operation and Development (OECD) countries supporting trade ( United Kingdom, France & United States of America) The customer acquisition drive to hit 100mn for the Retail Business by 2027 will continue, as we migrate majority of customers to digital platforms by 2027 across all touchpoints Our primary focus on trade is to leverage established presence across trade and financial hubs across the world to continue driving trade outputs Presence in London, Dubai, Hong Kong, Lebanon, Beijing, Mumbai etc. and extensive footprint across the Continent”.
Source: Access Corporation publishes 5 years strategic outlook – StocksWatch (stocksng.com)