Business
Africa has become the fastest growth region for private banking
Banking systems in countries like Nigeria, with its massive population, oil wealth and free market orientation, hold considerable promise. “In the east, where economic integration within the East African Community is advancing briskly, Kenya will remain the regional financial hub.
Ethiopia is one of the fastest growing economies, although it imposes many restrictions in its state-led development model. In southern Africa, Mozambique and Zambia offer good prospects.
While private banking has traditionally been the domain of major international institutions, a new era of austerity and cost-cutting has left the private banking arena wide open for African institutions. South Africa’s Standard Bank, for example, has expanded its regional footprint operates to around 18 countries and is providing the entire gamut of services to its well-heeled clients. Togo-based Ecobank operates in 32 countries, while Nigeria’s United Bank for Africa is also expanding its regional footprint.
All three banks are looking to provide services across the entire value-chain starting from the completely unbanked to those who expect personal service and require investment advice.
Finally, democratic roots are taking hold in many African countries, which means wealth creation is not just the domain of a handful of elite, but is giving rise to a new breed of entrepreneurs, family groups and businesses that will require private banking services as their net worth starts growing.
Source: Reuters
