Nigeria
TAJBANK LIMITED – OUR STORY/PROFILE
TAJ Bank secured its banking license from the Central Bank of Nigeria on the 3rd of July 2019 and commenced operations on the 2nd of December 2019 with two pioneering branches – its Corporate Branch in Abuja and a branch in Kano. From inception, the Bank has demonstrated an immense appetite for growth and innovation, rendering exceptional services to customers with a well-motivated workforce. As a Bank with the strategic intent of building sustainable ethical Banking products and services, they leverage on mainstream and social media. The Bank’s vision is to become “the leading African financial institution dominating in customer experience and innovative solutions”. The bank actively opens branches across Nigeria, expanding its footprint.
The Bank’s core values include Trust and Justice; Customer-centricity;Excellence; Determination; and Innovation.
Despite the challenges posed by the global pandemic back in 2019/2020, TAJBankproactively expanded its operations and secured licenses for critical banking products, such as Letter of Credit Dealership and Foreign Exchange.
After eight (8) months of productive operations, excellent strategic leadership and effective performance management, the Bank achieved a record high EPS and proceeded to make profit in the subsequent months. Sequel to this record, TAJBank was awarded the Best Non-Interest Bank 2020 by IFN, Thinkers Magazine Bank of the year 2020, Leadership Newspaper Bank of the year 2020, Innovative Islamic Bank of the year 2021 by AICIF and, Business Day BAFI Award Bank of the year 2021.
Since commencing operations, TAJBank has demonstrated its commitment togrowth and expansion, reflected by the frequent development of new products. Demonstrating a commitment to growth, TAJBank consistently introduced new products to its fold. Notable offerings include Jualah (contract projects). Jualahreflects the Islamic finance approach of facilitating economic activities while adhering to ethical and Sharia-compliant principles. Musharakah (partnership agreement), CashWaqf (a contract for charity), and refinancing to mention just a few.
TAJBank has opened several additional branches with major expansions in states such as Abuja, Kano, Kaduna and Lagos which individually have at least 3 branches.TAJBank's expansion strategy involves opening branches in strategic locations, with a focus on states with a thriving commercial presence.
In Abuja, the bank strategically places core branches and cash centers to ensure accessibility to non-interest finance for traders in market spaces. This thus enables the Bank to find newer mediums to connect with a larger audience. A few notable branches in the city of Abuja are National Assembly, Garki Market, Wuse Market, Gudu Market, Gwarinpa, Wuse 2, Ogun House, Kubwa, A.A Rano Airport Road and its Head Office situated along Ahmadu Bello Way, FCT, Abuja. Other branches include Sabon Gari, Kofar Wambai, Zoo Road, MM Way, Naibawa, Bello Road, Hotoro, Kurna Asabe and Kabuga in Kano, Apapa, Bourdillion, Ajah, Trade Fair, Oshodi, Marina in Lagos, Kasuwan Bacci, Kigo Road, Sabon Tasha, Nnamdi Azikiwe Bypass, Kawo in Kaduna, Sokoto, Gombe, Maiduguri, Yola, Borno with recent openings of Port Harcourt and Owerri branches making its entrance in the southern regions of Nigeria following the acquisition of a national license back in August 2022. This has culminated into forty (40) robust and responsive branches and counting.
Despite the economic challenges, TAJ Bank has demonstrated resilience by ensuring rigorous risk assessment procedures were implemented during this period both in the areas of brand expansion and product development.
A flagship product worth mentioning is the Mudarabah Time Deposit popularly referred to as an MTD. The Mudarabah Time Deposit (MTD) is a prominent product which enables Individuals or entities invest a certain amount of money (capital) with TAJBank under a Mudarabah contract.
TAJBank acts as the Mudarib (manager) of the funds, using them for various Sharia-compliant investment activities, this is one of the most ethical investment options for investors, where from a minimum of a 100,000.00 naira, an investment can be made for at least thirty (30) days on a roll over basis.
Investors choosing Mudarabah Time Deposit participate in ethical and socially responsible investment while contributing to the bank's activities in a mutually beneficial manner.
The strategic commitment of the Bank is to be among the dominant Non-Interest Bank operating in Nigeria with comprehensive non-interest banking products and services coverage; rank among the top 10 Deposit Money Banks (DMBs) in Nigeria; and pursue global branch expansion to achieve more branches across state capitals/major commercial centers.
It launched the first of its kind Mudarabah Sukuk Mudarabah (profit-sharing) an investment in corporate properties, the investors are paid rental incomes bi-annually. TAJBank's innovative approach is evident in the introduction of the Mudarabah Sukuk.
"Sukuk" refers to Islamic financial certificates, often referred to as "Islamic bonds." These financial instruments comply with Islamic principles, which prohibit the payment or receipt of interest (usury), and they represent ownership in a tangible asset, service, project, business, or investment activity.
This asset could be real estate, infrastructure projects, or other tangible business ventures.
The Mudarabah Suku was listed on the floor of the Nigerian Exchange – the first of its kind in Africa. This was due to the outstanding success of the Sukuk raising N11.4 billion under its N100 billion sukuk series 1 issuance programme. It contributesgreatly to developmental purposes.
TAJBank introduced TAJWAY, a bespoke digital banking platform that supports customers' activities digitally. One of the unique features of TAJWAY is its multiple transfer option.
This feature enhances the flexibility of fund transfers, allowing customers to perform various types of transfers conveniently within the platform. TAJWAY contributes to making non-interest finance accessible to a larger audience, extending beyond traditional brick-and-mortar branches.
The application design is praised for its amazing, straightforward, and intuitive user interface. It includes a feature where entering the account number automatically shows the top 3 banks accurately 100% of the time – a novel feature of the app.
The platform has incorporated the latest technologies to enhance the overall banking experience for users. The design aims to offer a seamless and user-friendly experience for customers conducting digital transactions. Digital banking platforms prioritize security, and TAJWAY has implemented a robust security measure to safeguard customer information and transactions.
TAJBank’s impressive growth trajectory has attracted mainstream players in the economy and has not only demonstrated that non-interest banking is a very profitable venture but has also proven this through financial results repeatedly.
The declaration of dividends in TAJBank’s 3rd year of business is unprecedented in the Nigerian banking history. Lastly and most importantly, the bank has funded several businesses that have created jobs and made significant impacts in the Nigerian economy.
SOME SUCCESS STORIES FOR TAJBANK AND LANDMARKS INCLUDE
1. Financial performance of the Bank with
• Profit before Tax (PBT) rising to N1.6 billion in FY2021, representing 433 per cent improvement over the preceding year’s profit.
• 117 per cent growth in gross revenue from N3.3 billion in FY2020 to N7.2 billion in FY2021
• Balance sheet growth from N50 billion in FY2020 to N110 billion in FY2021, signaling a 122 per cent growth.
2. Credit rating upgrade to “BBb+” by Agusto & Co reflecting “the Bank’s good liquidity profile, satisfactory capitalization, improving profitability and a growing franchise in the Islamic banking space.” Similarly, DataPro assigned the Bank a short-term rating of A2 and long-term of BBb+ with a stable outlook.
3. Issuance of National Banking license by the Central Bank of Nigeria.
4. Successful bond sale of its N10 billion 15 per cent Series 1 Sukuk issuance programme, which ran from Tuesday, September 20, 2022, and ended on October 28, 2022.
5. First corporate to list sukuk bond on Nigerian exchange limited (NGX) after successfully raising N11.4 billion under its N100 billion sukuk series 1 issuance programme.
6. Reception of ISO 27001, ISO 22301, and ISO 20000 certifications on Information Security, Business Continuity, and IT Service Management Systems respectively.
7. Award for Businessday Islamic Bank of the Year 2022 by Banks and other Financial Institutions Awards 2022 (BAFI)
8. Development and launch of TAJWAY (TAJBank’s Digital Banking App with features embedded to rival the market)
9. Branch expansion from 23 branches to 40 branches (including cash centres) in 2023.
10. TAJBank solidifies itself as the top bank in the NIB space with the biggest Tier 1 capital and PBT in the niche industry.
11. TAJBank secured the award for both the Best Sukuk Deal of the Year and the Most Promising CEO of the Year for Mr. Hamid Joda by the Global Islamic Finance Awards (GIFA) ceremony that held in Dakar, Senegal
12. TAJBank also secured the award for the Best Islamic Bank of the Yearaward amongst its peers in the non-Interest space by the BusinessdayBanks and Other Financial Institution Awards (BAFI) for the third time in a row.
13. Also, the Bank scooped three awards at the 6th African International Conference on Islamic Finance (AICIF) which Best Innovative Bank of the Year, Best Mudarabah Sukuk Deal of the Year and the Islamic Personality of the Year for Mr. Hamid Joda.
