Recapitalisation and Digital Disruption: Why Public Affairs Matters for Nigerian Banks
By Franklyn Ginger-Eke
In today’s rapidly evolving financial landscape, the Central Bank of Nigeria’s bank recapitalisation has already yielded tangible wins as many lenders have met the higher capital thresholds, and there’s been a marked surge in credit to the real economy—a testament to stronger balance sheets and renewed risk appetite. Yet, Nigerian banks find themselves at a pivotal crossroads. The digitisation of the economy has transformed the way financial services are delivered; well-capitalised banks can now fast-track their own technological transformation. They are investing in modern core-banking platforms, digital-lending portals and APIs that facilitate open banking. This not only drives operational efficiency and customer convenience but also deepens financial inclusion by bringing unbanked populations into digital channels. Over the past few years, transactions that once required a personal touch at bank tellers have been seamlessly transitioned to ATMs and mobile platforms. As every service becomes digitally accessible and competitors’ offers are at consumers’ fingertips, it is no longer sufficient for banks to rely solely on traditional service models to attract and retain clientele.
Evolving Client Relationships
At its core, financial services are built on trust and meaningful relationships. In this brave new world of digital banking, what truly distinguishes a financial institution is not the breadth of its product offerings, but rather the quality of its client engagement. Financial service providers must now offer an experience that goes beyond the transactional. This is where public affairs (PA) comes into play. The role of PA extends far beyond traditional advertising or publicity—it focuses on building two-way channels of communication, fostering genuine dialogue, and creating the conditions for mutual trust and understanding.
The Canadian Public Relations Society once defined its practice as managing the relationships between an organisation and its diverse publics through strategic communication. In our context, Nigerian banks need to adapt this thought process, transforming their approach from mere broadcasting of messages to engaging in substantive, reciprocal conversations with their stakeholders. By using strategic PA tools, such as collaborating with community influencers and hosting interactive sessions, banks can demystify changes, address concerns, and invite valuable feedback.
Building Authentic Connections
In Nigeria, where financial institutions play a significant role in both urban economies and community life, authenticity is paramount. The narrative of the modern bank is no longer crafted by the institution alone; it is co-created with its customers, local communities, and regulatory bodies. PA strategies enable banks to tap into these varied voices, turning potential controversies, such as debates about the placement and relevance of physical ATMs, into opportunities for meaningful dialogue. This two-way communication not only enhances the reputation of banks but also ensures that decisions are informed by the lived experiences of the communities they serve.
Such an approach transforms the relationship between banks and their clients, turning routine communications into platforms for shared growth. Nigerian banks that invest in comprehensive PA frameworks signal to their customers that they are not merely profit-driven institutions but responsible partners in economic and social development.
Safeguarding Trust in a Digital Age
Trust remains the cornerstone of the banking sector. When digital transformations occur, they often come with a sense of uncertainty among clients—uncertainty that, if left unaddressed, can have far-reaching consequences for the economy. A robust PA strategy serves as a safeguard by proactively addressing concerns and preventing misunderstandings that might otherwise erode this trust.
In a market as dynamic as Nigeria’s, where both traditional values and modern aspirations converge, maintaining transparency is critical. Whether through regular community meetings, personalised digital communication channels, or interactive public forums, PA helps banks continuously align themselves with the needs and expectations of their customers. This alignment not only protects the institution’s reputation but also reinforces the public’s confidence during times of change.
A Strategic Investment for the Future
The Nigerian financial services landscape is marked by both challenges and remarkable opportunities. As digital transformation accelerates, banks must redefine their customer engagement strategies to remain competitive. Implementing a forward-thinking PA strategy is more than an operational tweak—it is a strategic investment that can determine long-term success. By emphasising dialogue, transparency, and community collaboration, Nigerian banks position themselves as adaptive institutions that not only understand technological trends but also appreciate the intrinsic human element of financial services.
In conclusion, the necessity for PA in Nigeria’s banking sector has never been more pronounced. As digital innovation reshapes the industry, banks that embrace PA as a core part of their strategy will be better equipped to navigate the complexities of modern finance, safeguard trust, and ultimately, drive sustained growth in an increasingly interconnected world.
Franklyn Ginger-Eke is a Fellow of Nigerian Institute of Public Relations (NIPR)
