BDM is one of Nigerian “new generation banks” established in 1990 the bank evolved and expanded rapidly in the domestic market. The bank attains the universal banking status in 2001 as a result of policy deregulation in the Nigerian banking sector allowing Nigerian banks to operate foreign subsidiaries. As a result, the bank opens its first foreign subsidiaries in Benin in 2001. As explained by the interviewees:
Democracy brought with it, an air of “business freedom” that allowed local businesses to explore growth opportunities that hitherto had remained in the shadows… this equally encouraged inflow of foreign investors and investments alike thus encouraging cross-border business relationships (BDM_g3 February 2016)
Besides the policy …show more content…
These advantages placed the bank as a market leader with differentiated service.
Besides these factors, the dynamic Nigerian banking sector, the bank size and ownership structure and vision, as well as network relationships motivated the bank to embark on foreign expansion. The knowledge and experience of the bank in the domestic market, reputation, resources and capability along the buoyant large domestic market in terms of, population, market size, economic growth and profitability are all key factors that impacted BDM internationalisation
While competition in the industry may drives firm to internationalise (Polesello et al., 2012), such competitiveness and rivalry among organisations could be a motivation internationalise. Nigeria has been a highly competitive market with intensifying domestic competition; foreign expansion was a strategy for the bank diversifies their income based beyond Nigeria, where opportunities are identified, especially in a close proximity, regional market with a large number of Nigerian business activities (BDM_g2 December 2015 and BDM_g3 2016). This was a strategy to mitigate any challenges that may arise in the domestic market and the bank internationalisation accelerated …show more content…
The policy implementation not only resulted in a leaner and more robust banking sector, but created a strong and solid banking sector thereby strengthens the Nigerian banks to expand their operations beyond Nigeria (AFDB, 2013). The resulted in further foreign expansion in the WAMU in 2010 and 2012 and subsequently followed by the UK subsidiaries in 2013 to service the needs of the bank large corporate clients. The interviewees explain further
Democracy brought with it, an air of “business freedom” that allowed local businesses to explore growth opportunities that hitherto had remained in the shadows… this equally encouraged inflow of foreign investors and investments alike thus encouraging cross-border business relationships (BDM_g3 February 2016)
Besides the policy …show more content…
These advantages placed the bank as a market leader with differentiated service.
Besides these factors, the dynamic Nigerian banking sector, the bank size and ownership structure and vision, as well as network relationships motivated the bank to embark on foreign expansion. The knowledge and experience of the bank in the domestic market, reputation, resources and capability along the buoyant large domestic market in terms of, population, market size, economic growth and profitability are all key factors that impacted BDM internationalisation
While competition in the industry may drives firm to internationalise (Polesello et al., 2012), such competitiveness and rivalry among organisations could be a motivation internationalise. Nigeria has been a highly competitive market with intensifying domestic competition; foreign expansion was a strategy for the bank diversifies their income based beyond Nigeria, where opportunities are identified, especially in a close proximity, regional market with a large number of Nigerian business activities (BDM_g2 December 2015 and BDM_g3 2016). This was a strategy to mitigate any challenges that may arise in the domestic market and the bank internationalisation accelerated …show more content…
The policy implementation not only resulted in a leaner and more robust banking sector, but created a strong and solid banking sector thereby strengthens the Nigerian banks to expand their operations beyond Nigeria (AFDB, 2013). The resulted in further foreign expansion in the WAMU in 2010 and 2012 and subsequently followed by the UK subsidiaries in 2013 to service the needs of the bank large corporate clients. The interviewees explain further