Lotus Bank Limited has joined the growing list of non-interest banks in the country, after it secured a licence from the apex financial authority in the country (The Central Bank of Nigeria) to commence non-interest banking operations in the country.
The recent action is borne out of the need to diversify the products and offerings of the bank to its numerous clients.
The development was confirmed through a statement issued by the apex bank titled ‘CBN grants Lotus Bank licence to commence non-interest banking operations’, as reported by the Punch. The statement added that: ‘’Lotus Bank seeks to pursue the mission of creating value and growth for all through digital innovation and best-in-class customer experience for Nigerians.”
Rationalizing the recent move, the Managing Director/CEO of Lotus Bank Limited, Mrs. Kafilat Araoye emphasized that the Bank’s focus and guiding principle is to deliver an alternative option to interest-based banking and to cater to the needs of not just the banked but also the under banked and unbanked population. In this light, she believes that the move will help strengthen financial inclusion in the country.
She further stated that the bank would entrench transparent pricing models, especially as it is one of the pre-requisites in operating non-interest banking. She said: ‘’Our values are deeply rooted in partnership. A critical component of our mission is the provision of innovative solutions that drive ethical prosperity for all stakeholders. We pride ourselves on digital solutions that provide our customers with the convenience of unlimited access to our services and products.
“Our products and service offerings will include non-interest business financing, deposit products (current, savings and investment accounts) and personal financing,’’ she concluded.
Lotus Bank is a full-service community bank offering a complete range of business and consumer banking services. It was founded and chaired by Mrs. Hajara Adeola, who is also the founder and managing director of Lotus Capital (the pioneers of non-interest finance in Nigeria). In 2015, Lotus Bank became part of Level One Bank, that is, a full-service commercial and consumer bank.