Merchant Banks are banking institutions distinct from regular retail or commercial banks. They offer high-risk services that cut across things like consultancy and the management of individual or institutional funds.

Nigeria has a long list of banks. But that depends if you’re talking about commercial banks or merchant banks.

Here is a list of strong and reputable merchant banks in Nigeria.

1. Coronation Merchant Bank

Coronation Merchant Bank is one of the leading merchant banks in Nigeria. Started in 1993, the bank has now existed for more than 30 years. It began through the actions of a consortium of financial institutions and was first named the Associated Discount House Limited (ADHL).

The CBN licensed ADHL to provide sovereign debt notes and money market instruments, which it excelled at. It experienced growth in all its targets and grew to become profitable. In 2011, a new management came on board and in 2013, this group set out to transition ADHL into a merchant bank.

Licenses to operate as a merchant bank and to deal with foreign exchange (FX) were finally issued in 2015.

After decades of operation, Coronation Merchant Bank has evolved in its range of services. The institution now focuses on six major areas. They include affluent banking, corporate banking, investment banking, private banking, and lastly, global markets and treasury.

Here are intricate details on each service provided by Coronation Merchant Bank:

  • Affluent Banking: Affluent banking refers to banking services created specifically for wealthy customers. Most often, only people in the upper middle class or beyond can access this.
  • Corporate Banking: Corporate banking speaks to the provision of banking products and services to corporations; typically those that are large and publicly traded.
  • Investment Banking: Coronation Merchant Bank also engages in investment banking for its customers. It relies on its wealth of experience garnered through decades of existence within the Nigerian financial space to help raise capital and provide meaningful consultation.
  • Private Banking: The private banking option is expressly available at Coronation Merchant Bank. Here, the institution offers tailor-made solutions to varied needs.
  • Global Markets and Treasury: Coronation Bank analyses user risk profiles, return requirements, and market expectations to deliver outstanding global market and treasury services.

2. Nova Merchant Bank

Nova Merchant Bank has etched its way to become a reputable merchant bank in Nigeria. The bank was started in 2017 after being licensed by the CBN. However, it did not begin operations until February 2018.

In its six years of existence, Nova Merchant Bank has served clients in meaningful ways. Its innovative financial solutions cover a broad area. These include wealth and asset management, deposit taking and trade services, among others.

Nova manages assets, liabilities, and liquidity profiles for its clients, and is a dealing member of the Financial Markets Dealers Quotation (FMDQ) OTC Securities Exchange, and Financial Markets Dealership Association (FMDA).

The success of this institution is hinged on its core values acronym “UPLIFT”. Each term in the acronym is Uniqueness, Passion, Leadership, Integrity, Fairness, and Transparency.

A detailed breakdown of the services offered by Nova Merchant Bank are:

  • Wealth and Asset Management: Nova Bank allows individuals and businesses to explore their plethora of wealth and asset management services.
  • Deposit Taking and Trade Services: Clients can make deposits to Nova Bank, trusting the company to perform trades on their behalf.

3. Greenwich Merchant Bank

Greenwich Merchant Bank (GMB) touts itself as a pre-eminent bank. Its parent company, Greenwich Trust Limited has existed for over 27 years. As it appears, the merchant bank has gained expertise in the local and international finance industry from this relationship. It is rated “BBB- (NG) Long Term, and A3 (NG) Short Term with Stable Outlook by Global Ratings Agency, GCR.”

Like Coronation Merchant Bank and Nova Merchant Bank, the Greenwich Merchant Bank offers services for corporations, high-value net-worth individuals (HVNI) and the like.

The bank sports a handful of exciting features including:

An Online Trading Platform: GMB owns and manages a full-fledged online trading platform. This platform is accessible to the bank’s customers. It allows them to trade stocks directly from the Nigerian Stock Exchange (NSE), from the comfort of their homes and using an internet-enabled device.

Research and Analysis: Users can access insightful research and analysis courtesy of GMB’s team of economists, strategists, and research analysts.

4. RAND Merchant Bank

Rand Merchant Bank was founded in 2012. In 2013, it officially began operations. The bank then went on a steady upward slope, innovating advisory services across infrastructural projects. In addition to this, the Rand Merchant Bank provides services on mergers and acquisitions (M&As) and funds transactions across different sectors.

The specific offerings of RMB are grouped as investment banking, corporate banking, global markets, and private equity-like other merchant banks on this list. However, there are two unique features which are:

  • Sector Coverage: RMB’s sector coverage is run by its efficient sector team. They study the “needs, nuances, policies, market drivers and role-players in each environment” and apply what they find to help clients’s businesses. Specifically speaking, this team’s work covers a total of 14 sectors of the economy. Some of these include; Construction, Real Estate, Technology, Oil and Gas, and Manufacturing.
  • BaNCS Online Platform: Processing payment solution BaNCs is an online platform by RMB. The system allows clients to access secure accounts and banking functionality in real time.

5. FSDH Merchant Bank

With FSDH Merchant Bank, it is business banking, corporate banking, prestige banking, treasury and global markets, and global custody.

The bank, a subsidiary of FSDH Holdings, has existed for close to three decades. It was the first discount house in Nigeria and its decision to become a merchant bank began in 2009 when the Central Bank of Nigeria (CBN) reportedly revoked the universal banking license. However, it wasn’t until 2012 before the apex bank finally presented a merchant license to the institution.

FDSH today is a real example of impact and continuous innovation. The bank is rated A with an outlook of “stable” by Augusto & Co. Limited, Nigeria. According to their website, this rating underpins their “good capitalisation, good liquidity, good profitability and an experienced management team.”

6. FBNQuest Merchant Bank

FBNQuest Merchant Bank is a financial institution similar in services to all the others mentioned above.

Established in 2015, this bank has had nine years of success and growth - and counting. It is clearly owned by the First Bank of Nigeria and offers a broad product platform for anyone to choose from.

Two standout features from the FBNQuest Bank websites are tools calculators and sector insights. Users will likely find this resourceful when trying to understand financial terms or ascertain one cost or the other.

Conclusion

Merchant banks may not serve your everyday financial needs such as transfers and small personal loans. However, they will surely come in handy when it’s time to invest or take your business or project to the next level. It is something to remember.