Commercial Banking Flashcards
Which people fall within the local corporate category of commercial banking?
These are businesses whose annual turnover falls within $5 million to $50 million
How many local corporates does Ecobank have at the moment?
3600 local corporates
What is the nature of local corporate clients?
They are net borrowers (they bring in less than they take)
Which are the customer segments of SME banking?
- Mirco Entreprises
- Small Businesses
- Medium Businesses
What is the annual sales turnover for micro enterprises?
Annual sales turnover less than $30,000
What is the annual sales turnover for small businesses?
Annual sales turnover between $30,000 up to $500,000
What is the annual sales turnover for medium businesses?
Annual turnover above $500,000 but up to $5 million
What kind of businesses fall within SMEs?
- FCMG
- Mining Support
- Commerce
- Health
- Agric
- Fintech
- Transport & Haulage
What are some products offered to SMEs?
Collections:
1. Online card payment solutions
2. POS terminals
3. Mobile Wallet Collection Solutions
4. QR Code Solution
Payments:
1. Ecobank Internet Banking
2. Business Prepaid Cards
Financing Solutions:
1. Working Capital
2. Asset
3. Inventory management
4. Project
Merchant Cash Advantage:
1. Facility of up to 50% of the average turnover of business capped at $40,000. It is given either as a loan or an overdraft for a year with a cleanup window of 30 days.
What is the public sector division under commercial banking?
This is banking catered to privately owned organizations who offer services for the public
Which kinds of organizations fall under public sector?
- educational institutions
- faith-based institutions
- local NGOs
- Professional Bodies Associations, clubs and societies
- Non-Core Public Sector
How many branches does Ecobank Ghana have?
60 branches
How many agencies does Ecobank Ghana have?
4 agencies
What are the 4 pillars of trade?
- payment
- risk evasion
- financing/finance
- information
Who are the parties involved in trade?
- importers & exporters
- bankers & financiers
- insurers & exporter credit agencies
- logistics companies
- regulatory companies
What is trade finance?
It is the facilitation of trade through various instruments or trade solutions and mechanisms
What are the categories of risk in international trade?
- Country risk
- Commercial risk
- Transaction risk
What are some functions of banks in trade?
- financing
- risk mitigation
- settlement
- balance sheet management
- advisory
- intermediation
What are the key elements of the sales contract?
Method of payment
Required documents
Transport mode
Full names and addresses of the parties to the contract.
Full description of the goods and/or services.
The quantity and quality of the goods.
The price of the goods and/or services.
Dates and time of delivery of the goods.
Delivery terms, i.e. international commercial terms (Incoterms)
Country of origin of the goods.
Ports of loading and discharge.
Payment details – sight/usance
What are the benefits if trade finance?
- short term
- profitable
- self-liquidating
- self-securing
- lower risk
- capital efficient
- cross selling opportunities
- transaction specific
- end to end transactions
What is PDO?
Past due obligation
What is NPL?
Non-Performing Loans
What are Excesses?
Any negative balance on the account
What are the classification of loans?
- Stage 1- This is when the customer regularly pays loan
- Stage 2- This is an underperforming customer. He/she delays in payment sometimes but eventually makes payment
- Stage 3- This a loan that is non-performing, that means it is past due obligation of more than 90 days
What are the functions of the Commercial Banking Loan Portfolio desk?
- loan monitoring
- early collections
- portfolio management
What is a Credit Program or Product program?
This is a pre-approved credit process requirements for a particular product or a set of products, generally for similar customers.
What are some types of product programs?
- Cashed backed PP
- Asset Finance PP
- Inventory & Distributorship Finance PP
- Contract & Receivables Finance PP
What is Ellevate?
It is a specialized program by Ecobank for women owned and women focused businesses. It offers tailored financial and non-financial business solutions that elevate the potential of women owned and women focused businesses
Who qualifies for Ellevate?
- A business at least 50% owned by women or founded by a woman
- A business with a share of 20% women on board of directors or in management
- A business with 30% of women in workforce
- A business or company manufacturing products for women
What value proposition does Ellevate offer women salaried workers and HNWIs who are entrepreneurs with unregistered businesses?
Access: by joining Ellevate, you gain access to resources and support that can help formalize, grow, and succeed in business endeavors.
Utilize Available Resources: Take advantage of the training programs, networking opportunities, and mentorship to enhance business skills and knowledge.
Enhance Business Visibility: Participate in online promotions and marketing initiatives to create brand visibility and attract new customers.
What value proposition does Ellevate offer women-owned and focused registered businesses?
Explore Financial Options: Make use of cash management, digital payments, business accounts, and financing options such as receivables and asset financing, including up to $50,000 in collateral-free loans.
Engage in Business Development: Participate in training, online promotion, and networking opportunities to support business growth and reduce gender inequality.
Access to Markets: Leverage the innovative Trade Hub platform to expand market reach and opportunities.
What value proposition does Ellevate offer women in executive and leadership roles?
Support the Cause: to achieve the company’s mission of promoting diversity, sustainability, and social impact.
Inspire and Empower: Use leadership to inspire and empower women entrepreneurs, driving meaningful change across the continent.
Promote Diversity and Sustainability: Engage in initiatives that promote diversity and sustainability within the broader community.
Mentorship Opportunities: Actively participate in a structured mentorship programs by a reputable brand to guide and support emerging women leaders, fostering a culture of growth and development.
What products are available to the Ellevate business under Commercial Banking?
- Cash Management Solutions: Efficient cash management services to streamline business operations.
- Digital Payments: Secure and convenient digital payment solutions for business transactions.
- Business Accounts: Tailored business accounts to meet the financial needs of women-owned and women-focused businesses.
- Collateral-Free Loans: Financing options including receivables and asset financing, with up to $50,000 in collateral-free loans
What products are available to the Ellevate business under Consumer Banking?
- Business Registration Support: Resources and guidance to help with business registration and formalization.
- Training Programs: Access to training sessions and knowledge-sharing webinars to enhance business skills.
- Networking Opportunities: Opportunities to connect with peers and industry leaders through events and online communities.
- Online Promotion and Marketing: Initiatives to increase brand visibility and attract new customers.
What products are available to the Ellevate business under Corporate Banking?
- Diversity and Sustainability Initiatives: Programs that align with the company’s mission to promote diversity, sustainability, and social impact.
- Mentorship Programs: Opportunities to mentor and support emerging women leaders, fostering growth and development.
- Leadership and Empowerment: Initiatives to inspire and empower women entrepreneurs, driving meaningful change.
- Comprehensive Financial Solutions: A suite of financial products and services tailored to the needs of female CEOs and executives
What are the benefits of Ellevate to Ecobank?
- Growing the customer base
- Growing the deposits
- Opportunity to have a transformed business model (broader portfolio)
- It gives the opportunity for cross selling
- integrating sustainability and impact
What is the importance of value chain?
- It improves deposit retention and liquidity within EGH’s ecosystem thereby facilitating quality credit/assets creation
- it provides the right avenue to cross and deep sell to existing and potential customers in a cost-effective manner
- It engenders synergies among the various business lines and facilitates learning among team members
What are some products and services that the bank can offer to the buyer side and seller side in a value chain?
- working capital financing
- medium term financing
- Treasury services
- non-financial supports such as bookkeeping etc
What is a value chain strategy?
This process involves identifying suppliers, service providers, and contractors, as well as key distributors, wholesalers, retailers, and exporters linked to a specific CB & CMB Anchor. It also includes engaging with their key staff to offer the Bank’s products and solutions.
What is value chain finance?
It is concerned with the flows of funds to and within a given value chain to meet the needs of chain actors for finance, to secure sales, to buy inputs or produce, or to improve efficiency
