The Managing Director/Regional Executive of Ecobank in Nigeria has announced - in Lagos on the 26th August 2024 - the launch of the institution's custody business in Nigeria. Ecobank set to commence the custody business operation in the country after it had secured regulatory approval from the country's apex bank and the Securities and Exchange Commission (SEC).
Notably, Ecobank Group - the company backing Ecobank and other of its subsidiaries - has this newly launched custody business running in other African-French and English speaking countries. Precisely, the "custody services are already being offered in some other countries where Ecobank has operations," said Adebola Adedeji, Head of Custody/Managing Director of Ecobank Nominees Limited.
Ecobank Nominees Limited is a special and separate entity out of Ecobank Group that caters for customers' assets being separated from the Bank's assets. In addition to it functions in Ecobank operations, it'll also be the company that'll be seeing into Ecobank's custody business operations in Nigeria.
What is Custody Business?
A custody business can be defined as "a safekeeping service that a financial institution provides for a customer's securities. For a fee, the institution collects dividends, interest, and proceeds from security sales and disburses funds according to the customer's written instructions."
As a custodian bank like Ecobank, you're liable to holding customers' securities for safekeeping to prevent them from being stolen or lost. Additionally, the custodian bank may hold stocks, bonds, or other assets in electronic or physical form on behalf of its customers.
In Ecobank case and as cited by the bank's managing director at the launching, the new custody service will allows the bank to provide better banking and investment options to its customers, as the bank's goal in Nigeria is to fulfill its promise of being the preferred choice for easy, affordable, and quick banking and investment services.
He also made it cleared that as a Pan-African Bank with access to other African countries Ecobank has become, the bank noticed a need for custody services in Nigeria which is the major reasons the bank decided to offer a better way for Nigerian investors to protect their assets and expand their business across the continent easily.
According to head of Ecobank Nominees Limited - the entity that'll be managing the Ecobank's custody business in Nigeria - "the custody business has fully commenced operations and is now in the market for business and already signing on customers."
Benefits of Ecobank's Custody Business in Nigeria
The Ecobank's newly launched Custody business in Nigeria offers several benefits including the ones outlined below:
- Asset Protection and Expansion: It provides a secure way for Nigerian investors to protect their assets and expand their business interests across Africa.
- Premium Financial Services: The custody service positions Ecobank as a one-stop shop, offering high-quality financial and investment solutions to customers.
- Access to African and International Markets: Expanding the custody service to Nigeria opens opportunities for customers to access African and international markets through Ecobank's network.
- Enhanced Client Experience: The service includes efficient post-trade solutions, such as settlements, fund administration, and portfolio valuation, supported by advanced technology to improve client experience.
"Our comprehensive service offerings include settlements, fund administration, corporate actions processing, portfolio valuation, FX services, securities lending, cash management, escrow agency services, reporting, multi-market access through Ecobank Group affiliates, amongst others," said Adebola Adedeji, Head of Custody/Managing Director of Ecobank Nominees Limited.
