With Hong Kong Licence, Wigwe Reinforces His Expansionist Drive

Donatus Eleko

The Group Managing Director of Access Holdings, Mr. Hebert Wigwe appears not about to slowdown anytime soon. This is because from a string of expansion across the African continent and Europe, recently received approval to commence operations in Hong Kong.

From Nigeria to Rwanda, South Africa, Mozambique, Kenya, Zambia, United Kingdom, among several other countries as well as setting up what could be described as one of the best universities in Africa, the expansionist adrenaline in Wigwe has remained on the rise. Also recently, Access Bank entered into acquisition agreements with Standard Chartered Bank, for the acquisition of the latter’s shareholding in its subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone, and its Consumer, Private & Business Banking business in Tanzania.

In a significant milestone towards realising its five-year strategic plan, Access Bank UK, the wholly owned subsidiary of Access Bank Plc announced that it has received approval to commence operations in Hong Kong. The approval, granted by the Hong Kong Monetary Authority, through Access Bank’s UK subsidiary, was as a testament to the Access Group’s international capabilities and strategic partnerships.

Furthermore, Access Bank’s commitment to a global presence and adherence to the highest regulatory standards is underscored by the decade-long effort to secure the license for operations in the sophisticated and tightly regulated market of Hong Kong.

Wigwe, who expressed his excitement and pride in achieving the long-awaited goal said, “I am immensely proud that Access UK has secured approval to commence formal banking operations in Hong Kong, marking a monumental achievement in our journey towards global prominence. This licence is a testament to our unwavering commitment, strategic foresight, and resilience over the past decade. Across the Access Group, we are excited about the possibilities that lie ahead.

“Hong Kong serves as a strategic cornerstone in our mission to be the world’s most respected African bank and we are ready to bring innovative, customer-centric financial solutions to the Asian market. We look forward to the opportunities and challenges that come with expanding our footprint in this dynamic international arena.”

With plans to commence operations in the coming year, the achievement reflects Access Group’s international capabilities and the strength of its strategic partnerships, scaled through the growing strength of its international operations through Access Bank UK, with regulated operations in the UAE, and Paris.
The establishment of Access in the Hong Kong market holds immense strategic potential for boosting cross-continental trade.

Hong Kong, renowned for its status as a global financial hub, serves as a pivotal gateway connecting Asia with the rest of the world. Hong Kong’s Gross Domestic Product (GDP) grew by 4.1 per cent year-on-year in real terms in the third quarter of 2023, having increased by 2.9 per cent in the first quarter and 1.5 per cent in the second quarter. The value of retail sales, in nominal terms, increased by 13 per cent year-on-year in September 2023. The value is provisionally estimated to have increased by 18.6% year-on-year for the first nine months of 2023.

Hong Kong’s labour market continued improving between August-October 2023 as the economy continued to recover. The seasonally adjusted unemployment rate stayed low at 2.9 per cent for the period between August-October 2023, similar as the level of July-September 2023 (2.8%).

Also, merchandise exports decreased by 5.3 per cent year-on-year in September 2023, but increased by 1.4 per cent in October, marking an end to a 17-month contraction, and exports decline narrowed to 11 per cent year-on-year for the first ten months of 2023.

Hong Kong is one of the most services-oriented economy in the world, with services sectors accounting for 93.4 per cent of its GDP in 2022.

According to World Trade Organisation (WTO), Hong Kong is the world’s 10th largest exporter of merchandise trade in 2022. According to the UNCTAD World Investment Report 2023, global FDI inflows to Hong Kong amounted to $117.7 billion in 2022, ranked fourth globally, behind the United States (US$285.1 billion), Mainland China (US$189.1 billion) and Singapore (US$ 141.2 billion).

In terms of FDI outflows, Hong Kong ranked seventh globally with $103.6billion. The top three were the United States (US$373.0 billion), Japan (US$161.5 billion) and China (US$146.5 billion).

In terms of FDI stock, Hong Kong was the world’s fifth largest host with US$2,090.6 billion, after the United States, the Netherlands, the Mainland China and the United Kingdom, and the world’s 5th largest investor with US$2,054.6 billion in 2022.

Additionally, according to a triennial survey conducted by the Bank for International Settlements, Hong Kong is the second largest foreign exchange market in Asia and the 4th largest in the world in 2022, with the average daily turnover of forex transactions increasing by 9.8 per cent from US$632.1 billion in April 2019 to US$694.4 billion in April 2022.

Similarly, as at the end of March 2023, Hong Kong’s stock market ranked the fourth largest in Asia and the seventh largest in the world, with the total market capitalisation reaching US$4.7 trillion. As of December 2022, Hong Kong was also the fourth largest IPO fundraising market in the world, with US$12.7 billion raised through IPO in 2021.

Hong Kong is an important banking and financial centre in the Asia Pacific. Hong Kong is the 4th leading global financial centre, according to the Global Financial Centre Index (33rd edition, Mar 2023).

The above statistics clearly showed how strategic the decision by Access Bank to expand to the country. Access Bank’s presence in this sophisticated market positions it strategically to facilitate and enhance cross-border trade between Africa and Asia. With its commitment to providing innovative financial solutions, Access would play a vital role in supporting businesses and investors involved in international trade. Furthermore, the Bank’s expertise and global network will not only streamline financial transactions but also foster economic collaboration between African and Asian enterprises.

Access Bank UK, a wholly owned subsidiary of Access Bank Plc is authorised by the Prudential Regulatory Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority, with a Dubai branch that is regulated by Dubai Financial Services Authority (DFSA), and a Paris branch that is regulated by the Autorité de Contrôle Prudentiel et de Résolution (ACPR)
Access Bank, a wholly owned subsidiary of Access Holdings Plc, is a leading full-service commercial bank operating through a network of more than 700 branches and service outlets spanning 3 continents, 20 countries and over 60 million customers. The Bank employs over 28,000 thousand people in its operations in Africa and Europe, with representative offices in China, Lebanon, India, and the UAE.

Access Bank’s parent company, Access Holdings Plc, has been listed on the stock exchange in Nigeria since 1998. The bank is a diversified financial institution which combines a strong retail customer franchise and digital platform with deep corporate banking expertise, proven risk management and capital management capabilities.

Over the years, Access Holdings, under the leadership of Wigwe has developed initiatives aimed at developing the continent’s economic and social ecosystems across diverse touchpoints. Having identified the immense opportunity in playing at the global stage, Access Bank felt the next thing to do was to transit to a more formidable structure. That led Access Holdings to be  restructured into an ecosystem orchestrator involving five verticals – the bank (Access Bank), Lending Company (LendCo), Payment Company (PayCo), Insurance and Pensions.

From a tiny bank in 2002, Wigwe who took over from his close friend and business partner, Aigboje Aig-Imoukhuede, in 2014, has transformed the bank and today, he has moved up to be overseeing the holdco. Despite that, he has remained relentless.

Today, it is one of the five largest banks in Nigeria in terms of assets, loans, deposits and branch network; a feat which has been achieved through a robust long-term approach to client solutions – providing committed and innovative advice.

“We believe that we are best positioned to basically do all of that. Our focus is to become an aggregator in Africa and we are building a global payment gateway and providing trade finance support and correspondent banking across the continent. We are focusing on the key markets.

“The approach would always be that in the country we wish to go to, that we have the right skills. We would not just be a drop in the country in which we are present, we would make sure that we have an impactful presence in each of the major countries in which we are present.

“In doing this, we are also mindful of the country we are going to so as to make sure that it is of benefit to the bank. As we do this, we are working with our friends and partners.

“We are diversifying our earnings away from volatile markets as well and we are orchestrating our operations from the global payments gateway and ensuring that using Access Bank UK, providing corresponding services from digital platforms, the overall profitability of our franchise,” he had explained.

From the foregoing, it is expected that the bank’s aggressive expansion drive would further diversify its earnings and see it delivering increased value to its investors and other stakeholders.