Interview: Okwuchukwu Udeh Discusses the Rise of Challenger Banks In Nigeria

Okwuchukwu Udeh is an experienced growth expert in the Nigerian financial industry with years of experience driving growth initiatives for top-tier institutions such as Access Bank. Throughout her tenure, she has established herself as a crucial figure in the sector, leading transformative initiatives that have reshaped the industry’s landscape. Her recent contribution to the Diamond Bank TechFest, which showcased the profound impact of technology on businesses and customers, further solidifies her reputation as an innovator.

Now transitioning from traditional to digital banking, Okwuchukwu Udeh brings her wealth of experience and expertise to a startup digital bank. With her finger on the pulse of the industry, she is poised to navigate the dynamic fintech landscape with finesse. Today, Okwuchukwu Udeh shares her insights on the rise of challenger banks in Nigeria and their profound impact on the traditional banking landscape.

Can you tell us how your background in Microbiology and Biotechnology led you to banking and marketing?

Certainly. My journey into banking and marketing began unexpectedly during my undergraduate studies. While I initially pursued science out of curiosity and a passion for discovery, I was drawn to the business side of things during my university years. After completing my graduation, I joined the bank as a business development officer. Soon, I realised my interest in marketing and communications, and I found myself good at creating engaging content and compelling copy. This new skill and passion led to my appointment as the copy/content manager in the bank’s corporate communications department. There, I improved my skills while contributing to various digital projects within and outside of work. Eventually, I transitioned into growth and product marketing.

Now, as a growth and product marketing expert in the Nigerian financial industry, how do you see your background in science influencing your approach to marketing and growth strategies?

My background in science has definitely shaped my approach to marketing and growth strategies in some unexpected ways. The analytical thinking and attention to detail instilled by my scientific training have proven invaluable in analysing market trends, understanding customer behaviour, and crafting data-driven strategies. Additionally, my scientific background has taught me the importance of experimentation and iteration, which are essential principles in the fast-paced world of marketing and growth. Overall, I believe that my unique blend of scientific and marketing expertise allows me to bring a fresh perspective and innovative solutions to the challenges facing the financial industry.

Talking about the financial industry, we are currently seeing the emergence of challenger banks in Nigeria. What do you believe has contributed to their rise?

The emergence of challenger banks in Nigeria can be attributed to several key factors. Firstly, the rapid advancement of digital technology has significantly lowered the barriers to entry in the banking sector, allowing innovative startups to disrupt the status quo. With the widespread adoption of smartphones and the internet, entities like Renmoney and ALAT by Wema Bank have capitalised on offering intuitive mobile banking solutions tailored to the preferences of tech-savvy consumers. Additionally, changing consumer preferences, particularly among the younger demographic, have created a demand for more convenient and accessible banking solutions, which challenger banks have successfully addressed through their digital-first approaches.

Could you elaborate on what sets challenger banks apart from traditional institutions, particularly regarding their digital-first approaches?

Absolutely. Challenger banks differentiate themselves from traditional institutions primarily by using technology to enhance the customer experience. Features such as instant account opening, AI-driven financial insights, and personalised budgeting tools are just a few examples of the innovative offerings that have become hallmarks of challenger banks. By prioritising innovation and user experience, these banks have captured the attention and loyalty of a new generation of banking customers.

You just mentioned that challenger banks have introduced some innovative features. How do you see these features impacting the banking landscape in Nigeria?

The impact of these features on the banking landscape in Nigeria is significant. By offering innovative services such as instant loans, customisable savings plans, and real-time customer support, challenger banks have raised the bar for the entire industry. Traditional banks are now pressured to adapt and innovate or risk losing market share to these agile competitors. Moreover, challenger banks’ introduction of competitive pricing and value-added services has forced traditional institutions to reevaluate their business models and embrace digital transformation to remain relevant in today’s fast-paced market.

As we look towards the future, how do you foresee the trajectory of challenger banks in Nigeria and their influence on shaping the landscape of the financial industry?

To be honest, the future of challenger banks in Nigeria looks incredibly promising. As technology evolves and consumer expectations change, challenger banks will play an increasingly influential role in shaping the financial industry. We can expect continued innovation in product offerings, user experiences, and strategic partnerships between challenger banks and other players in the fintech ecosystem. For instance, we might see collaborations between challenger banks and payment platforms to offer seamless integration and expanded services. Ultimately, challenger banks are poised to drive greater financial inclusion, empower consumers with greater control over their finances, and catalyse further disruption and innovation in the banking sector.

Speaking about the influential role of challenger banks, how are traditional banks responding and adapting to challenger banks and fintechs? What strategies are they using to remain competitive?

That’s an excellent question. Traditional banks are indeed facing intense competition from challenger banks and fintech startups, prompting them to reassess their strategies and embrace digital transformation. Many traditional banks are investing heavily in technology infrastructure to enhance their digital capabilities and improve customer experiences. For example, we’ve seen banks like Access Bank in Nigeria revamp their mobile banking apps, introducing features such as biometric authentication and seamless fund transfers. Similarly, First Bank of Nigeria has launched an online account opening process, allowing customers to open accounts remotely without visiting a branch.

In addition to that, some brick-and-mortar banks are forging strategic partnerships with fintech companies to leverage their innovative solutions and reach new customer segments. For instance, Guaranty Trust, that is, GTBank, partnered with Flutterwave, a fintech company, to offer GTWorld, a mobile banking app that provides users with a wide range of financial services, including bill payments, airtime purchases, and fund transfers. By embracing these initiatives, traditional banks aim to stay relevant in an increasingly digital world while retaining their customer base amidst growing competition.

Considering the evolving regulatory landscape and competitive dynamics and given your expertise, how do you envision the growth trajectory of challenger banks in Nigeria?

Despite some challenges, the potential for growth in Nigeria’s challenger banks is promising. While regulatory frameworks continue to evolve to accommodate digital innovation in the financial sector, challenger banks must navigate regulatory compliance requirements effectively to sustain their growth momentum. Also, competition from traditional banks and fintech startups remains intense, requiring challenger banks to innovate and differentiate themselves to capture market share continuously. However, with their agility, customer-centric approach, and focus on technological innovation, challenger banks are well-positioned to capitalise on emerging opportunities and reshape the banking landscape in Nigeria.

As we’ve explored the broader context of challenger banks, let’s delve into their growth and marketing strategies. Could you elaborate on how these innovative institutions are effectively expanding their customer base and gaining traction in the market?

Definitely. Challenger banks excel in employing innovative marketing strategies and agile growth tactics to establish a foothold in the market. They prioritise a targeted approach, concentrating on specific demographics or niche markets where traditional banks may be underserving. For instance, Kuda Bank in Nigeria effectively targets the youth demographic, tailoring financial products and campaigns that resonate with digitally inclined consumers. The challenger banks also use social media platforms like Instagram, Twitter, and Facebook to connect with customers and gather feedback. They also offer referral programs and incentives to attract new customers, as seen with ALAT by Wema Bank. Moreover, they prioritise customer experience as a key differentiator, emphasising features such as seamless account opening processes, intuitive mobile apps, and responsive customer support. By consistently exceeding expectations, challenger banks cultivate trust and loyalty, fueling their growth and carving out a significant presence in the competitive banking landscape.

Before we conclude, do you have any final thoughts or advice for aspiring growth professionals looking to contribute to the digital technology sector through finance?

For aspiring professionals looking to contribute to the digital technology sector through finance, I advise embracing interdisciplinary learning and seeking opportunities to bridge the gap between these two fields. With the increasing convergence of finance and technology, growth professionals have abundant opportunities to make a meaningful impact by leveraging digital solutions to drive innovation in financial services.

Firstly, I would encourage aspiring professionals to deepen their understanding of finance and technology domains. This could involve pursuing relevant educational courses or certifications, attending industry conferences and workshops, and actively staying updated on the latest trends and developments in both fields.

Secondly, I recommend seeking out hands-on experience and practical exposure to real-world projects that involve the intersection of finance and technology. This could include internships, volunteer opportunities, or side projects where you can apply your skills and knowledge in both domains.

Also, networking with professionals already working at the intersection of finance and technology can provide valuable insights and mentorship opportunities. Building relationships with industry experts and thought leaders can open doors to new possibilities and help you stay informed about emerging trends and best practices.

Finally, don’t be afraid to think outside the box and challenge traditional approaches. The digital technology sector constantly evolves, with ample room for creativity and innovation. By embracing a growth mindset and actively seeking out opportunities to innovate, aspiring professionals can play a key role in driving positive change and shaping the future of finance through digital technology.

Thank you, Okwuchukwu, for sharing your invaluable insights and expertise with us today. It’s been a pleasure speaking with you.

Thank you for the opportunity. It’s been a pleasure.