Access Bank: Lessons in Corporate Governance

Raheem Akingbolu reviews the recent evaluation and rating of corporate brands by Brand Finance, the world’s leading brand valuation consultancy, which adjudged Access Bank as ‘Most Valuable Brand’, reflecting on what the feat means to the brand and the Nigeria’s banking public

Global and local experiences are sufficient for curious minds to know that brand building and sustainability are deliberate management decisions of brand promoters. As reflected in the profile of most successful brands, a deliberate brand can only be an offshoot of strategic planning, core competence and marketplace realities.

Few days ago, the comforting news by the Brand Finance report that Access Bank, for the 3rd consecutive time, had been named ‘Most Valuable Brand’ in Nigeria, confirmed that the financial brand is not an accidental brand but a deliberate brand conceptualised by fertile minds of core professionals who want to proudly represent Africa by building a global brand. From the overarching business strategy to brand message and customer service, promoters of Access Bank reflect their core competency and business vision. No wonder, the lines have fallen onto them in pleasant places.

The 2024 analysis of the latest Brand Finance report showed a significant 73 per cent increase in Access Bank’s brand value, reinforcing its status as one of the continent’s leading banking brands and clearly Nigeria’s top financial institution, per Brand Finance’s annual ranking of the world’s Top 500 Banking Brands.

In this year’s edition, the bank also led the rankings in terms of sustainability perceptions value, surpassing Flour Mills of Nigeria, which ranked second. This highlights the bank’s commitment to sustainable practices and its leadership in embedding environmental, social and governance considerations into its daily operations.

Access Bank’s brand value rose to N355.3 billion, placing it as the 31st most valuable brand in Africa, according to Brand Finance’s Africa 200 2024. This remarkable growth is primarily attributed to substantial increases in interest-based income, reflecting improved revenues and strong financial performance.

Testament of commitment to excellence

For the bank and its promoters, the rating was not accidental but a testament to their commitment to excellence, innovation, and sustainable growth. The Managing Director and the Chief Executive Officer of the bank Roosevelt Ogbonna, captured it succinctly when he stated that the management was, indeed honoured that their favourite brand was recognised again as Nigeria’s most valuable brand.

“This accolade is a testament to our commitment to excellence, innovation, and sustainable growth. We will continue to deliver exceptional value to our customers and stakeholders, driving positive impact across the communities we serve,” Ogbona said.

Speaking at the Brand Finance Nigeria Forum 2024, the Group Head of Group Marketing & Retail Analytics at Access Bank, Toyin Henry-Ajayi, also pointed out that Access Bank’s consistent performance and brand value growth reflect the management’s adherence to their core principles of excellence throughout each strategic 5-year cycle.

She said: “Our journey has been one of continuous improvement and adaptation, and we remain dedicated to setting new standards in the banking industry, while contributing our quota to Africa’s economic development.”

Ranking and process

Perhaps the importance of the recently revealed ratings wouldn’t have received the mileage it did but for the pedigree of the ranking agency. Brand Finance is not only a global leader in brand valuation, its process and criteria for ranking have been commended over the years.

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, the consultancy evaluates the strength of brands and quantifies their financial value to help organisations of all kinds make strategic decisions.

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports, which rank brands across all sectors and countries.

In the latest edition, it reported that banking brands accounted for 50% of the total brand value among Nigeria’s top 25 brands. Within the Nigeria 25 2024 ranking, banking brands emerged as not only the most valuable, but also the strongest and fastest growing, representing value for shareholders and investors alike.

Brand values in the rankings are calculated using the Royalty Relief approach, compliant with ISO 10668 standards. This method estimates future revenues attributable to a brand by calculating a royalty rate for its use, resulting in a ‘brand value’ that reflects the net economic benefit achievable by licensing the brand in the open market.

Managing Director of Brand Finance Nigeria, Babatunde Odumeru, commented on the resilience of Nigeria’s top brands, saying, “Despite a tumultuous financial year marked by the Naira plummeting over 30% against the US dollar and soaring inflation, Nigeria’s leading brands have displayed remarkable resilience. These top-tier brands have not only withstood economic pressures, but many have continued to flourish, with 23 of Nigeria’s top 25 most valuable brands achieving brand value growth. We are also increasingly seeing top brands continuing to expand beyond their domestic borders and grow their influence across the continent.”

The Access Bank brand…

Like a few Nigerian brands that have become household names in the market, Access Bank started humbly about three decades ago with the ambition of becoming a solid brand that would command respect in many sectors. Armed with a well set-out objective, coupled with a properly aligned strategy and service offering, the bank has grown from that humble beginning into a banking giant with an admirable reputation that transcends the local market.

Today, Access Bank is a full service commercial banking institution, operating through a network of over 700 branches and service outlets spanning 3 continents, 21 countries and over 60 million customers. Beyond a cool logo or beautiful campaigns, a lot of work and cutting-edge strategy have gone into building the bank into a formidable banking brand.

With its retained status as the brand leader in Nigeria, it’s obvious that the future looks good for the brand and its promoters as Access continues to chart the path towards a prosperous future for all its stakeholders across Africa, and indeed, the rest of the world.

QUOTES

“In the latest edition, it reported that banking brands accounted for 50% of the total brand value among Nigeria’s top 25 brands. Within the Nigeria 25 2024 ranking, banking brands emerged as not only the most valuable, but also the strongest and fastest growing, representing value for shareholders and investors alike.”

“Brand values in the rankings are calculated using the Royalty Relief approach, compliant with ISO 10668 standards. This method estimates future revenues attributable to a brand by calculating a royalty rate for its use, resulting in a ‘brand value’ that reflects the net economic benefit achievable by licensing the brand in the open market.”