Rokel Commercial Bank is celebrating its silver jubilee on Sept. 17, marking 25 years since a 100 percent transfer of ownership from Barclays PLC (which had ownership of the bank since 1917) to the government and people of Sierra Leone took place in 1999.
The period following the transfer witnessed stable growth until the escalation of hostilities during the height of country’s civil war which ended in 2002. After the war, there was a period of decline with liquidity and solvency challenges until around 2013 when the government of Sierra Leone provided a bailout package. Consequently, the recapitalization led to a 65% government ownership of a bank that was to become one of the most profitable financial institutions as well as a major contributor to the country’s economy.
However, despite the bailout, the same problems persisted until 2017 when a new managing director was appointed.
The new management, led by seasoned economist and financial expert Dr. Walton Ekundayo Gilpin (photo), set out to implement bold and viable reforms that revitalised the bank’s operations, transforming it into a modern, resilient and profitable financial institution. Key among these reforms included a comprehensive marketing and rebranding campaign, resulting in increased public confidence and improved financial performance. The bank’s profits soared, and it was able to pay dividends for the first time in decades.
From a paltry Le1.5 billion in 2016 to Le64 billion in 2017, it was clear that new management team was on a mission to save the bank from total collapse. In 2020, the bank scooped a mouthwatering profit of Le83.5 billion while retained earnings rose from Le966 million in 2019 to Le44 billion. In three years, Rokel Commercial Bank had cleared over Le100 billion of its retained losses and with positive retained earnings. And for the first time in decades, RCBank paid a dividend of Le6.5 billion to its shareholders. The following year, the figure increased to 10.6 billion and in 2022, the bank paid a staggering Le17 billion as dividend.
Technological advancements, such as a robust IT infrastructure and the introduction of a mobile money platform, Rokel SimKorpor, have further strengthened the bank’s position. These innovations have improved customer experience and expanded the bank’s reach. The bank has also prioritized financial inclusion, offering loan schemes targeting customers with limited collateral. This initiative has benefited small and medium enterprises, as well as individuals in the informal sector.
Last year, the Bank launched a top-of the-range electronic banking products and services such as prepaid cards, credit cards, Visa Cards, ATM machines, Moneygram, Western Union, Ria, among others. The effectiveness of these products and services has been palpable with satisfactory testimonies from customers.
Today reputable government and non-governmental organizations like NACSA, TSC, UNDP, World Bank and several others utilizes Rokel Commercial Bank’s digital services to pay their employees and vulnerable groups through social safety net programmes.
The drivers of this phenomenal transformation have not overlooked the need for strong correspondent banking with banks like the Ghana Commercial Bank, UBA-USA, AICTIF Bank and Standard Chartered Bank, with a potential to expand further. They have also established strong relationships and leveraged on several business opportunities with giant financial institutions across Africa and beyond.
In the midst of these impressive achievements, the bank has remained a front-line campaigner of financial inclusion, tailoring it products and services to align with its financial inclusion initiatives. This saw the introduction of RCbank small and medium enterprise (SME) loan scheme in 2021, targeting customers with limited collateral. The scheme has low interest rates, flexible payment plan and business development training for beneficiaries. Commercial motorbike riders, market women and other informal sector groups have significantly benefitted from the scheme.
Today, the Rokel Commercial Bank is a major contributor to Sierra Leone’s economy and a trusted financial institution for both government and non-governmental organizations.
Indeed, RCB is the best bank n Sierra Leone delivering optimum services to its customers