Competitive Analysis
- Bukola Bankole
Competitors | @Alternative Bank | @Jaiz Bank | @Taj Bank | @Lotus Bank |
Analysis by | ||||
Date Created | May 29, 2024 | |||
Competitor Profile
ALTERNATIVE BANK
Company Mission:
We chose to go beyond the norm; offering you jaw-dropping services based on ethical principles
Company Size: 11 - 50 Employees
Key Objective: To leverage technology to offer inclusive banking services catering to underserved populations, focusing on financial inclusion and economic empowerment.
JAIZ BANK
Company Mission: To make life better through ethical banking.
Company Size: 1,000 - 5,000 Employees
Key Objective: To become the leader in Ethical Banking in Africa
TAJ BANK
Company Mission: To build a sustainable ethical brand through exceptional service, innovation and professionalism whilst enhancing stakeholders’ value.
Company Size: 500+ employees
Key Objective: To be the leading African financial institution with a reputation for excellent customer experience and innovative solutions.
LOTUS BANK
Company Mission: To create value and growth for all through digital innovation and best-in-class customer experience.
Company Size: 500+ employees
Key Objective: To consistently provide innovative solutions that drive ethical prosperity for all stakeholders.
Market Positioning
The target market and market share calculation is based on an estimate of Nigerian Islamic Financial Market value (N1.2trn) total assets.
Competitor | Market Share | Geographical Presence | Target Segments | Customer Demographics | Brand Positioning |
Jaiz Bank | 48.28% | Lagos, Abuja, Nasarawa, Bauchi, Yola, Sokoto, Kano, Ibadan, Zaria, Ekiti, Lokoja, Gombe, Katsina, Minna, Maiduguri, and Kebbi | Broad, focusing on Sharia-compliant banking | Predominantly Muslim clientele | Established as the first non-interest bank in Nigeria. |
The Alternative Bank | 0.013% | Lagos
| Retail and corporate clients
| Diverse customer base | Known for innovative non-interest financial products |
Lotus Bank | 8.58%
| Lagos, and Abuja
| Digital-savvy customers
| Tech-savvy customers | Customer-centric with a focus on digital banking |
Taj Bank | 43.14% | Lagos, Abuja, Kano, and Sokoto
| SMEs and individual customers
| Local SMEs and individual customers | Emphasizes personalized services and community engagement |
Moniepoint Bank |
| Online presence only | Small and Medium-sized Muslim businesses across Nigeria | Diverse customer base | Moniepoint is a trusted brand, we are known for our secure services and innovative products. |
Product and Services
Note: The information provided below are estimations from the respective companies website.
These are the products and services competitors offer which are quite similar to our products.
Competitor | Products/Services | Unique Selling Points |
Jaiz Bank
| Business Banking:
Trade Finance
| Strong brand recognition in the Northern part of Nigeria and an extensive product range
|
The Alternative Bank
| Business Banking
| Innovative products designed for both Muslim and Christian customers as the only non-interest bank with a strong digital presence. |
Lotus Bank
|
| Advanced digital services with a customer-focused approach (Tailored products)
|
Taj Bank
|
| Community-focused, personalized services
|
Moniepoint Bank | Business Banking
| Online application with a quick and easy application process |
SWOT Analysis
Our comprehensive comparison thoroughly examines each competitor's unique selling points to identify Moniepoint's unparalleled USP.
Competitor | Strengths | Weaknesses | Opportunities For Moniepoint |
Jaiz Bank | Brand recognition, established customer base, and extensive product range | Slow adoption of digital technologies | Solid digital presence across Nigeria. |
The Alternative Bank | Innovative products, digital presence. | Smaller market share, limited physical presence | With over 3 million businesses under its belt. |
Lotus Bank | Customer-centric, advanced digital banking services, strong customer support | Newer entrant, less established brand
| Solid digital presence across Nigeria. |
Taj Bank
| Community focus, personalized services, high customer loyalty | Limited product variety, smaller geographical reach | There are varieties of loan products. |
Marketing and Sales Strategies
Based on research, these are some of the marketing channels and sales strategies used by the competitors.
Competitor | Marketing Channels | Sales and Engagement Tactics |
Jaiz Bank | TV, radio, social media, community partnerships | Emphasis on Sharia compliance, partnerships with religious and community leaders |
The Alternative Bank | Digital marketing, social media, email marketing, community events | Innovative campaigns, sponsorship of educational programs, key partnerships |
Lotus Bank
| Digital-first approach, influencer partnerships, social media | Customer referral programs, loyalty incentives and digital marketing |
Taj Bank | Community-based marketing, CRM systems | Personalized marketing, active local market presence, Positive word-of-mouth and community reputation |
Competitive Differentiation
Unlike competitors in the market, the benefits of our markup financing include the following;
Online application: Most of the competitors require business owners and their guarantors to visit a physical location to complete their financing application, with Moniepoint Markup Financing, business owners will be able to complete the application and disbursement process on our mobile or web app.
Quick Access to Capital: The application and approval process is which takes 1- 2 weeks,, providing quicker access to needed funds.
Flexible Repayment Terms: Repayment terms featured weekly or monthly tenure, ensuring that payments are manageable and aligned with the business owner's cash flow.
No Collateral Required: Unlike other competitors, Moniepoint markup financing does not require physical collateral.
Scalable Financing: As the business grows and its sales increase, the amount of financing made available to the business owners increases.
Focus on small and medium-sized rural businesses: Our markup financing will primarily focus on small and medium-sized Muslim-owned businesses representing the largest underserved customers.
Personas
Name: M nasir
Location: Gombe
A memorable quote/line: Public perception can influence many parameters. From what I know and from talking to people in my community, there is a perception that Jaiz Bank's Islamic loan is mostly Sharia-compliant.
Bio: M Nasir is a business owner who operates three provisional stores across different communities. As an experienced entrepreneur, he's aiming to expand his business to include seven branches and a major outlet in the main market. Nasir is deeply rooted in his community and his religious beliefs, prioritizing ethical and Sharia-compliant financial solutions.
Business Goal: My goal is to expand to seven branches and then open a big shop market in the main market. As the elder in my family, everyone looks up to me, so I must have a growth plan. Interest-free financing aligns with my goals because it allows me to expand without compromising my financial ethics or religious beliefs.
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Opportunity Solution Tree
Business owners shared their pain points, motivations and needs during Loans Continuous Discovery which was captured here: Loans Opportunity Solution Tree
Conclusion
The competitive landscape for non-interest financing in Nigeria is dynamic and evolving. Moniepoint can leverage its unique positioning, focus on digital innovation, and community engagement to differentiate itself from established competitors. Strategic partnerships, targeted marketing, and continuous product development will be key to achieving long-term success and market share.