CBN approves Lotus Bank non-interest banking licence

By Kayode Tokede

The Central Bank of Nigeria (CBN) has granted a non-interest banking licence to Lotus Bank Limited.

This follows Lotus Bank’s plan to deliver an alternative option to interest-based banking and cater to the needs of the banked, unbanked and underbanked.

This disclosure is contained in a statement titled ‘CBN grants Lotus Bank licence to commence non-interest banking operations’ issued by Lotus on Thursday.

The bank’s statement partly reads, “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.”

It stated that non-interest banking was geared towards supporting the real sector and Lotus Bank aimed to improve financial inclusion in the country adding that it would operate transparent pricing models as it was the norm in non-interest banking.

The statement further says, “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.”

It also states that Lotus Bank is managed by a team of seasoned professionals and financial experts led by the Managing Director/Chief Executive Officer, Mrs Kafilat Araoye, who has over 25 years of commercial banking experience.

Araoye pointed out that Lotus 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 underbanked and unbanked population.

She stated that the bank’s products and service offerings will include non-interest business financing, deposit products (current, savings and investment accounts) and personal financing.