ACCESS Bank Plc agreed to takeover struggling Diamond Bank Plc.
This is not a merger deal. Merger occurs when two companies on roughly equal terms combine into one new company.
Takeover is the purchase of one company by another. It is also called acquisition.
Every customer responds very emotionally to the news of a bank takeover. If you have felt or still feeling like this, these are the reasons you should be calm.
YOUR DEPOSITS ARE SAFE
Every deposit in all the Nigerian banks are insured by Nigeria Deposit Insurance Corporation (NDIC). This means that depositors are protected and guaranteed payments.
DIAMOND BANK IS NOT BANKRUPT
Bankruptcy is legal term used when a company or individual becomes insolvent. That’s unable to pay debts. The bank has ability to pay.
ALL INSTRUMENTS VALID
All the means of withdrawal such as your cheque books, cards of all kind are still going to be in use for awhile!
HONOURING THE ACQUIRED CUSTOMERS
The acquiring bank (Access Bank) will honour the acquired customers of Diamond Bank Plc. This means that customers of Diamond Bank have become Access Bank customers by default.
However, there are other non financial losses.
Access Bank Plc, may likely not allow all the branches of Diamond Bank Plc to be open. Some branches will be merged.
DISAPPEARANCE OF PERSONAL CUSTOMER SERVICE
Personal customer service will continue to rapidly disappear until it is nonexistent.
LOSS OF EFFICIENCY
The smooth transactions you enjoy before may take time before you experience it again. If at all you will!
GENERAL CUSTOMERS SERVICE ISSUES
The general customers service issues may appreciate or depreciate over a period of time. Customers get your mind set. Don’t go to Access Bank and say if it were in Diamond this & this &that. Welcome to Access Bank plc.
UNHAPPY MOOD PERIOD
Diamond Bank is a bank you have built relationship with for a long time. Naturally, you are going to be unhappy for a period of time each time you remember it. Endure it such is life!
LOSS OF DESIRED APP
Your Diamond Bank desired App must change to Access Bank. Some banks have WiFi that allow you to download their Apps free. But I don’t know of Access Bank Plc!
INCREASE IN TRAFFIC
Due to the volume of customers accessing the services of the acquiring bank. There is the possibility of network challenges except action is taken. But you know that Access Bank is about to pay 72.5 billion naira for the deal. Time and money is needed for Access Bank to gather itself for action.
Meanwhile, bank takeover is a complex procedure with the possibility of extraordinary payoff or extraordinary peril. So the acquiring bank (Access Bank) does it with care.
The takeover agreement is yet to be approved.