Ex-Diamond Banker Brings Brilliance to Digital Banking

He is the African banker with a spark in his eye who identifies bright prospects in the expansive, often chaotic, terrain of Nigeria’s informal economy.

Uzoma Dozie – the scientist turned entrepreneur – hails from one of Nigeria’s wealthiest and most influential families.

At 55, he is setting out on an entrepreneurial journey that he believes will harness vast wealth and growth within the significant informal sector driving Africa’s biggest economy.

This initiative was inspired by Dozie’s tenure managing the family business, Diamond Bank. Witnessing the customer base in digital banking triple made him realize it was time to kickstart his own venture within the tech industry.

The momentum for this new initiative surged in 2019 with the $235m merger of Diamond Bank and Access Bank, resulting in the largest financial institution in Africa, serving 29m clients.

This merger led to Dozie’s exit as CEO and the birth of a new entity, Sparkle, a mobile-focused digital platform created for millions of predominantly informal retailers, employing AI to provide more accessible banking services.

“I am a banker who understands technology. As a banker, it’s crucial to know how to protect wealth and manage risks,” he shares from Lagos.

Upon Sparkle’s launch, it raised some eyebrows in the banking sector due to its name’s resemblance to the former family business, but Dozie welcomed the association, noting their clearly different paths.

“The name Sparkle is intentional. It signifies a modern digital version of Diamond. What do diamonds do? They sparkle!” he elaborates.

“In comparison to my current workplace, Diamond Bank feels dated. This journey has truly been educational… Sparkle was built by a team of 20 individuals, all under 35.”

Prodigal son

The company’s website describes Dozie as the “chief sparkler,” and there is an undeniable energy about him. While he may not be the wealthiest entrepreneur in Nigeria, he is certainly among the most approachable. Whether in

Davos, Switzerland, or Dulles International Airport in Washington, Dozie is always prepared for a friendly exchange and a brief chat.

His warm demeanor is partly a legacy from his 85-year-old father, Pascal Dozie, a revered figure in West African business known for his exceptional talent in wealth generation.

In the late 90s, Dozie Sr. was charged with helping the fledgling mobile network MTN secure investors for its launch in Nigeria. His mission involved raising 40% of the capital from local sources. He diligently visited numerous offices, even connecting with Nigerian expatriates in Washington and New York. Unfortunately, local investors remained hesitant, and he could only secure 20% of the required capital from them, necessitating other sources to fill the gap.

However, during a conversation in 2016, MTN proudly reported 60m subscribers, and those early investors had witnessed returns of 20 times their initial investments.

“Many now tell me they wish they had invested,” he reminisced in Lagos, chuckling heartily.

He is also likely the only millionaire on the continent who shared a classroom with Rolling Stones frontman Mick Jagger.

The two were contemporaries at the London School of Economics; Jagger left to record his first single in 1963 while Dozie continued his studies in economics, initially in London and later in Uganda.

“We thought Mick was quite unique,” he once shared with me. “We were relatively conservative, and he sported long hair. As a Nigerian, I found it hard to fathom him abandoning studies for music. In my village, music was merely a pastime for those without options!”

Beneath Dozie Sr.’s success and confidence lies a painful history marked by loss in Nigeria. Two of his brothers fought in the devastating Biafran War, which resulted in 100,000 military casualties and widespread starvation affecting around 2m civilians.

His mother was trapped in the chaos of refugees, and from 1967 to 1971, he remained unaware of her fate. After the war, she somehow managed to contact him, prompting Dozie Sr. to return from Uganda to care for her and start building the family’s wealth.

In 1971, he established his first company, the African Development Consulting Group (ADCG). The foundations of what would later evolve into the family’s core business were laid in the mid-1980s after observing a stream of traders from his hometown of Owerri, in Imo State. Most of them transported large sums of cash, making them vulnerable to theft.

These challenges faced by everyday individuals sparked the creation of Diamond Bank, which emphasized money transfers that allowed traders to travel without carrying bulky cash reserves.

It all commenced in a modest third-floor office in Victoria Island, Lagos, staffed by merely 20 employees and armed with just $5m in capital. Diamond Bank overcame early skepticism – many were wary of dealing with such a new entity in the unpredictable Nigerian banking landscape – ultimately serving 16m customers.

This formidable legacy is what Dozie’s eldest son aspires to uphold.

Get on my cloud

Dozie has made a remarkable start with Sparkle, which he founded in 2019. Aiming at the retail sector, the company claims to have reached nearly 250,000 customers, conducting 20,000 transactions daily valued at over $420m to date. While modest in the expansive Nigerian banking sector, it’s a significant accomplishment.

Sparkle aims to undercut its rivals by harnessing AI and machine learning for a competitive edge. The platform utilizes AI to interact with clients in any of Nigeria’s 500+ languages, from Yoruba to Hausa. Other features include monitoring spending habits on daily, weekly, and monthly bases.

Sparkle’s target audience comprises Nigeria’s 40m micro, small, and medium enterprises, which together represent over 80% of the workforce and contribute around 50% of GDP, even though many owners have never stepped inside a bank.

“The primary goal of Sparkle is to facilitate the formalization of small businesses. In Nigeria, most enterprises function informally… The reasons for their informality stem from the high costs of becoming formal,” he clarifies.

“It’s also about solidifying your accounts and transaction records. That’s a key offering from Sparkle… we provide essential tools required by startups: payroll, inventory management, invoicing, all at an affordable rate,” Dozie adds.

In light of the establishment of the African Continental Free Trade Area, I ask if he envisions expanding across the continent.

“I’ve built a network of contacts and relationships. It’s a long-term commitment, but for the time being, we don’t need to explore Africa as Nigeria itself provides a significant market along with a vast diaspora,” he replies.

Capturing a notable portion of a highly competitive market is no small task – I inquire where he sees Sparkle in five years.

“Who is my current competition? Traditional banks. Many of these banks have operated in the same manner for years. We aim to provide them with an alternative because the future is digital.

“I aspire to connect with individuals who have never walked into a bank. We want them to say: ‘I want to start a business; I want to be part of Sparkle.’ That’s our vision for the next five years.”

Finding satisfaction

In the meantime, Dozie is utilizing his entrepreneurial skills as an angel investor through his investment fund, Black Knights.

“Technology has enabled us to assist a larger number of individuals. I believe that financial services can advance through technology,” he asserts.

One of his investments is in a Nigerian furniture brand, Taeillo – a company he engaged to furnish his Lagos office, which he describes as creating minimalist furniture comparable to IKEA.

Founded by Jumoke Dada in 2018 when she was just 26, the company aims to provide Nigerian consumers with uniquely modern furniture that rivals imported quality – with furniture imports to Nigeria valued at approximately $8bn annually.

The company has raised over $3m across three funding rounds, including $2.5m in a round at the end of 2022. By that point, it had broadened its operations to Kenya, shipped nearly 10,000 furniture items, and served over 5,000 customers in both markets.

Black Knights invested in the company to bolster its growth, granting it credibility that attracts additional investors, according to Dozie.

“Investors in my fund contribute not only capital but also financial insights and guidance,” he explains.

“This angel investing brings me immense satisfaction. I find myself thinking like my father. He invested, reaping both financial and non-financial benefits. As you grow in life, those non-financial rewards provide a warm feeling, inspiring you to help more people.”

It appears the Dozie family finds fulfillment far more easily than Mick Jagger.

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