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By Habibat Aliyu
Though the laws guiding Microfinance Banks are said to be strict, DavoDanni has said that they are necessary to achieve sustainable and profitable operations.
Managing Director, DavoDani Microfinance Bank (DDMFB), John Ologe, noted that the current forex crisis has been a major challenge as most people who require its services are importers, who now require double the usual amount for same quantity of goods, thereby reducing the number of customers that can be served.
He disclosed this at the unveiling of new logo and brand identity of DavoDani Microfinance Bank (DDMFB) held in Lagos.
Speaking on inflation and its effect on lending, he noted that the firm has a strong credit risk process that customers have to go through, which can take care of the inherent risk in lending.
“Due to the constant fall of the naira, we now have to strengthen our lending capacity. Our capital adequacy has to be really looked into. The directors would need to put in more money and the banks would have to develop capacity to attract additional funding to meet the customer base,” he said.
On the rebranding, he noted that it was a step to ensure ease for customers to pronounce and identify the bank.
“We recognise that for any financial enterprise to remain relevant, sustainable and thriving in the face of growing global economic challenges, recessions, pandemic and the peculiarly difficult and uncertain Nigerian business terrain, there has to be a deliberate process of re-imagining. This entails the shedding of old skin and continually thinking of new strategies to remain relevant.
“It’s easier for people to say DDmfb than DavoDani Microfinance Bank. Banking is a competitive industry and the easier you make your visibility the better, he added.
He noted that efficient and speedy service delivery sets the firm at a cutting edge.
According to him, as at September 30, 2022, the bank’s shareholders funds stood at N1.6 billion, which is in excess of the required minimum capital requirement of N1 billion. We have also grown our risk assets portfolio to over N3 billion, with a balance sheet size of N 3.8 billion.
Founder and Board Chairman, Austine Enajemo-Isire, noted that the bank has evolved and grown over the last eight years under the new owners, now operating from 10 locations within Lagos state, delivering consistent uncommon results and benefits to all stakeholders.
According to him, DDMFB has brought numerous MSME customers, unbanked and under-banked into the financial system that now enjoy unhindered access to sustainable financial service
