CBN grants Lotus Bank non-interest banking license

The Central Bank of Nigeria (CBN), the country’s apex bank, has granted Lotus Bank Limited a non-interest banking license.

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.

In the statement Lotus Bank said that its 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 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.

“…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.

Founded and Chaired by Mrs Hajara Adeola, who is also the founder and managing director of Lotus Capital (the pioneers of non-interest finance in Nigeria), the bank said it was starting its operations on a solid foundation of experienced leadership and a strong advisory council of experts.

Lotus Bank is the first non-interest bank to commence operations from South-west, Nigeria with a focus to serve people of all faith.

With its flagship branch located at Victoria Island, Lagos, South-west Nigeria, the bank will open its doors to customers from July 2021.