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Case
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Reference no. 714-071-1
Authors: Chris Ogbechie
Published by: Lagos Business School
Published in: 2014
Length: 25 pages
Data source: Field research

Abstract

This case recounts the origins and evolution of Equity Bank Group from a Building Society to a full service financial institution. From inception, the bank adopted sustainability as a key aspect of its business model. In particular, the bank identified a big social issue that seemed intractable - the exclusion of poor from the formal banking system which helped to sustain poverty and through its efforts at tackling the social problem, it created economically valuable products and services that empowered the disadvantaged population to maximize their opportunities. This alternate business practice produced for the bank a sustainable competitive advantage over other financial institutions. The Bank had recognized that there was an inevitable link between society and business - a healthy business depends on a healthy community to create demand for its products and provide a supportive business environment while a healthy society depends on competitive companies that can create jobs, support decent wages, buy local goods and pay taxes. The exciting aspect of Equity Bank’s journey-from a humble, floundering but ambitious building society to an African Success story - was its successful partnership with the 'bottom of the pyramid'.
Location:
Industry:
Size:
Over USD30 billion annually

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Abstract

This case recounts the origins and evolution of Equity Bank Group from a Building Society to a full service financial institution. From inception, the bank adopted sustainability as a key aspect of its business model. In particular, the bank identified a big social issue that seemed intractable - the exclusion of poor from the formal banking system which helped to sustain poverty and through its efforts at tackling the social problem, it created economically valuable products and services that empowered the disadvantaged population to maximize their opportunities. This alternate business practice produced for the bank a sustainable competitive advantage over other financial institutions. The Bank had recognized that there was an inevitable link between society and business - a healthy business depends on a healthy community to create demand for its products and provide a supportive business environment while a healthy society depends on competitive companies that can create jobs, support decent wages, buy local goods and pay taxes. The exciting aspect of Equity Bank’s journey-from a humble, floundering but ambitious building society to an African Success story - was its successful partnership with the 'bottom of the pyramid'.

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Location:
Industry:
Size:
Over USD30 billion annually

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