AltBank Targets Ethical Finance Expansion, Eyes 500 Locations Nationwide

The Alternative Bank (AltBank) has unveiled an ambitious growth and impact agenda for 2026, positioning non-interest banking (NIB) as a key driver of financial inclusion, ethical finance and sector-focused development in Nigeria.

Speaking during an interview on Islamic Finance Viewpoint, the bank’s executive director, South, Korede Demola-Adeniyi, said the non-interest banking sector remains significantly underpenetrated, accounting for just 1.7 per cent of Nigeria’s total banking assets as at 2024, despite growing demand for ethical and value-based financial services.

She noted that while the industry recorded modest growth in 2025, deeper advocacy, public education and product innovation are required to unlock its full potential.

“Non-interest banking is not niche banking. It is ethical banking designed for inclusion. We are not selling to Muslims alone. We are offering a value proposition that works for everyone,” Demola-Adeniyi said.

With increased capital and more precise regulation expected to shape the sector in the New Year, she expressed confidence that non-interest banks would assume a more prominent role in Nigeria’s economic transformation.

According to her, AltBank’s growth strategy for 2026 will prioritise sectors with strong developmental impact, including healthcare, education, agriculture, renewable energy and transportation.

She added that the Bank is also exploring structured participation in the creative economy through partnerships, while remaining fully compliant with non-interest banking principles.

“These are sectors that shape lives and livelihoods. Our responsibility is to design financing structures that solve real problems, not just disburse funds,” she said.

Addressing concerns over perceived over-collateralisation in non-interest banking, Demola-Adeniyi explained that the NIB model is partnership-driven rather than interest-based, requiring transparency and shared risk between banks and customers.

She stressed the importance of sustained public education to improve understanding of how non-interest banking structures work and the benefits they offer.

“The NIB model demands honesty and collaboration. When customers understand that the Bank is a partner, not just a lender, trust deepens and outcomes improve,” she said.

AltBank currently operates more than 130 branches and service locations nationwide, largely through strategic partnerships. The Bank plans to scale this footprint to as many as 500 locations, alongside intensified financial literacy programmes and agent empowerment initiatives aimed at deepening inclusion and expanding access to ethical financial services across the country.