As we look to the future of the banking industry, Olumide Sole, the sub-Saharan banking research analyst at Vetiva Capital Management, shared a compelling vision during a recent interview on Arise TV. According to Sole, core banking is poised to be the primary catalyst for growth in 2024.
Sole highlighted that leading banks such as Zenith, GTCO, and UBA experienced remarkable increases in their financial performance, largely attributed to Forex evaluation gains in 2023. This surge in performance underscores the significant role played by core banking operations in driving the industry forward.
Delving into the intricacies of the industry, Sole shed light on the impact of rising interest rates on the cost of funds. He explained, “As interest rates climb, banks are compelled to allocate more resources towards paying interest on their customers’ deposits.”
Furthermore, Sole addressed the recent decision by the Central Bank of Nigeria to remove the two billion naira limit on banks’ daily deposits into the Standing Deposit Facility. This move bears implications for the liquidity management and operational dynamics of banks, potentially reshaping the financial landscape in the coming year.
Vetiva’s insightful analysis provides a glimpse into the evolving landscape of banking, offering valuable foresight into the key drivers of growth and the factors shaping the industry’s trajectory in 2024.
