The Sky is not falling! Access bank, Intercontinental Bank M&A

If you have ever bought a 20 year old ‘Tokunbo’ car without having to fix a thing, you can exit this post already and leave to people like us who have and are currently still fixing minor faults here and there with our newly acquired “Tokunbo”. Not saying tokunbos’ are bad buys, just saying “fairly used” don’t come in perfect shape, we find and fix issues so much to deliver expected service. sometimes we assume a perfectionist mindset hoping to transform the same car to a brand new car (if wishes were horses)

That is how simply I can explain what M&A issues are, why they are a necessary part of every M&A and why we customers need to exercise some patience to have them thoroughly fixed.

So in the context of my discussion, Access bought over Intercontinental bank (not sure about what brand of car to illustrate the might of this transaction) but while it is perceived that inter could be the range rover and access the Toyota corolla, I see things a little differently. Access to me is a 2012 Bugatti Veyron, Intercontinental ‘was’ a 2000 dodge viper (that refused an upgrade), insane difference in engine capacity and elegance. So access bought a tokunbo 2000 dodge viper with the task to upgrade to a veyron-ish like dodge (Pimp my ride kinda stunt).

Definitely, both banks run widely different operating models, even their banking application/software is different. To truly come together as one Bank, the platforms and modus operandi must also come together and YES there will be issues.

While I’m not arguing that the once upon a time magical service delivery of access seems to be massively affected, (as expected) as a result of the merger, I’m also saying they deserve a chance to complete the business integration, then we can sit to rate their performance. But if Access can pull this off, not compromising their high level service delivery standards, then this M&A would be perhaps the most memorable.

While it’s obvious they have issues with the system integration process, let us stop spreading un-founded rumors about Access Bank failing. A failing bank never buys another; It struggles to keep afloat.

I am a proud customer of both banks and my expectation is to have the emerged entity deliver quality service maybe better than it used to be with access.

It’s only a corn that hit your head, the sky is not falling…don’t be deceived by Foxel Loxey into a den of no return. access bank is not fading. Its only growing its might and I still think the bank will cause a great upset very soon in terms of the best financial institution in Nigeria.

NB. Access should try sha o! I spent an extra hour trying to cash money last week o! but it’s a cross I’ll bear with you for now…I can’t wait for it to end. + thanks for the light refreshment in your banking halls, it made the wait a little bearable.

All is well that Ends Well: Adieu Intercontinental Bank!!!

I somewhat share a slightly different sentiment on perhaps the most popular business combination (Merger and Acquisition) we have had in recent times. Access Bank takeover of Intercontinental Bank

A lot of folks have questioned the rationale and workability of such a huge project, expressing their dismay at how Access (a frog) could swallow Intercontinental (an elephant). While I understand where most folks are coming from in the sense that Intercontinental bank was the mother of modern day banking in Nigeria with an intimidating back up of resources (financial and infrastructure) enough to blow out its competition into oblivion, I dare to tell you it’s all past glories. The Inter we knew is no longer the one that was acquired. Infact the deception remained largely in its robust retail offering and personal attachment of its loyal customers to the brand. The foundation could no longer hold, critical issues bordering on corporate governance had robbed the bank of its former glory.

An erstwhile unknown access, steadily grew its might over the years, imbibing strict corporate governance and sustainability practices into its operations. this guaranteed them a top 10 finish in Nigeria’s most profitable business as at 2008. At the time I remember telling a friend about the institution and its strategic drive for success. More to their blessing was having an astute business man as the head, aig (as he is called) understood the Nigeria business terrain and worked his life out to make the bank what it is right now. My brother was amongst his recruit at the time and I can remember how he became an alien to us, due to his work, but I loved the fact that he was sold out to the organization’s vision. such was the determination of the access army that provoked the biggest argument on the subject matter, how could they buy over intercontinental bank?

So the question truly is

How could the mother inter leave its workers to the mercy of another? A bank that had the arguably the best employment offer (including a severance pay), 1^st bank to cross the $1 billion in first tier capital

My views.

· The banking sector is a critical part of any economic system, so important that their slip could cost the economy an irrecoverable loss.

· Intercontinental bank and the rest four affected banks were undercapitalized and posed a risk to the entire banking system.

· "The banks lost their money in bad loans

· The excessively high level of non-performing loans in inter was attributable to poor corporate governance practices, lax credit administration processes and the absence or non-adherence to credit risk management practices.

· CBN had to act. the economy needed urgent CPR, the banks (and invariably the economy) needed bailouts.

And so it happened, CBN looked inwards, got them off to indigenous takeover and that is what got us to where we are today.