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Diamond Bank scrapes COT charges on MSMEs account

By  Babajide Komolafe
Diamond Bank has scrapped payment of Commission on Turnover (COT) charges for customers operating the Diamond Businessxpress.
The Diamond Business-xpress account is specically designed to add value to micro, small and medium enterprises with the purpose of helping them to grow.

The COT free feature comes in three categories namely Starter for micro businesses, Growing for small businesses and Established for medium businesses.

Explaining the features of each category at a media launch on Wednesday, Senior Adviser Retail Banking at Diamond Bank, Mr. Garry Marsh, said, “The first is for micro or starter businesses. We have scrapped the concept of CoT and replaced it with a fixed fee of only N 1500 monthly. For this price, our customers can have free turnover of up to N4m per month and free cash deposits of up to N0.5m per day.

“Based on our research, these limits should be more than sufficient for more than 80 per cent of businesses in Nigeria. So more than 80% of businesses can have banking for only N1500 monthly or to put it another way, N50 per day! It is worth noting that this fee is only 50 per cent  of our existing monthly fee on our Business Xpress Account so more than 80 per cent of our existing business customers will see a reduction in their cost of banking, starting tomorrow!

“For small or growing businesses, the monthly fixed fee is only N3,000. The free turnover is now N12m per month and the free cash up to N1m per day.

For medium or established, the monthly fixed fee will be N 6,000 with free turnover of N40m monthly and free cash per day of up to N2m. For all customers, should volumes occasionally exceed either element, there will be an additional charge but only on the excess.

“So the cost of banking is now significantly less than before, but in addition to that all of our MSME customers will have access to the following added value services should they wish to:- use their own web site and email addresses – improving their professiona-lism and increasing their visibility and sales.

“Regular local networking events within a city/state – bringing like-minded people together to improve business and transaction flow. Quarterly educational business development seminars on relevant business matters in Abuja and Lagos – improving knowledge, managing risk, increasing marketing skills. A specially written guide for business owners, helping them to better run their business – in a book and compact disc.

For qualifying customers, access to loans for the purchase of assets or overdrafts to support cash flow, credit cards and for established businesses and borrowers we will also offer dedicated relationship management This is what we will be offering at launch but our intention is to continue the development of this proposition with new enhancements on a regular basis.”


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