The Stanbic Educational Trust (SET) was launched recently. What factors inspired development of the product?

We evaluated the needs of Nigerians, as we always seek to offer them bespoke solutions and not just provide a one-size-fits-all product or service to everyone. Our investigations revealed that parents and guardians were desirous of providing quality education for their children and wards, which corroborates the truism that the best legacy you can give a child is a good education.

This, apparently, is the dream of many discerning individuals. We then sought for a way to make this happen for them. It is our first product and we are excited about the need it fills and the good it can do.
With low-income levels in the country and quite a sizeable proportion of the population operating in the informal sector, do you think the Trust is accessible to many parents?

Everyone who will pay the price to realise a dream needs to set up SET. Your allusion to low-income levels is one key reason one must start early. One must also save as often as possible to make this happen. By this, I refer to the ease of setting up the Trust and the flexibility it affords for the settlor.

This would be done in a convenient way over a period of time. If possible, one should start saving when a child is born. We take the stress off the parent or guardian. We have also simplified the process for all.

Does SET apply to students studying in Nigeria only or does it have an offshore feature that is denominated in foreign currencies?

SET offers a Nigerian component, as well as an offshore angle, where payments may be made to institutions of learning in foreign currency under the terms of the trust.

Contributions to the SET and its investments are made in Naira, but we are able to effect payments in foreign currencies at the prevailing interbank rates.

How does SET differ from similar products offered by banks that are targeted at saving for education?

First, this is a Trust, not just a bank product. A Trust has many benefits aside just saving for education, as it can evolve into a vehicle that caters for more than just education. An added advantage is that we take the burden off our clients in terms of paying the school fees and other attendant payments on their behalf, whether they are there or not.

A further benefit is that we ensure that diversion of funds is negated, making payments only to the school and on the back of verified invoices.

Another noteworthy angle is the return on investment from sound investment management that the fund enjoys while in the Trust, as opposed to just soaking away in an account, where the funds do not get an appreciative return.

A fifth advantage of SET is that it is administered by a corporate trustee, who handles all related matters with professionalism and objectivity for the good of the designated beneficiaries.

What are the other areas of need that Stanbic IBTC Trustees Ltd. has identified and plans to intervene?

We are pleased to pioneer the Simple Will, which we are passionate about because of the immeasurable benefits it confers on subscribers.

The need to take steps for an estate plan cannot be over-emphasised. It is the responsible thing to do, because life happens. And if you can, you must do all in your power to ensure that when you go, you have left your dependents well taken care of and in a way that will preserve the harmony in your family. With this, you save them all the time, trouble and energy in accessing whatever assets you might have left behind.

What has new corporate trustees done differently from the old practitioners of trusteeship, which existed among various ethnic groups in Nigeria?

The fact that people are becoming more aware of the benefits of a corporate trustee jumps out at you immediately. While the age-long practice was and is a good thing, it does have its drawbacks, which issues such as collusion and breach of trust, diversion of funds, termination of function because of death of the trustee, usually an individual, and family squabbling.

A good corporate trustee, on the other hand, guarantees many unmatched advantages, which include continuity of role and function (since there is a going concern that will remain in business and continue to adhere to client’s instructions), objectivity and professionalism, and quick and prompt attention to affairs and well as elimination of diversion.
The Trust business is often interpreted in terms of death, transition, estate planning and execution. Do you think operators and regulators are doing enough to raise the awareness in Nigeria, to make it acceptable like any other business?

We are not where we should be, but we are certainly also not where we used to be. Regulators and practitioners are raising the bar and massively educating the masses as to the benefits of the offerings. This is gaining ground in leaps and bounds, but I agree that there is yet a long way to go.

We will keep at it and educate, coach, teach and mentor at every forum and every chance we get until the day the average Nigerian will not tremble or consider it morbid to discuss estate planning, but see it as the very prudent course of action one ought to take once an individual attains adulthood.

To what extent have you been able to manage the deep-seated phobia associated with planning for life after death?

It is through education. We inform, show, tell, give facts and figures and explain until the client or prospect is better enlightened, informed and clearly understands the benefits and importance of planning. Once they do, they turn around to thank us for steering them right.

Like they say, knowledge is power. So, once they have the key information, they are then empowered to make the right decisions.

Death is inevitable; we will all go someday. The question is when and how. We can make the end of our time a happy memory for our loved ones when we have left well, with affairs all neatly tidied up and when we have helped make the intergenerational wealth transfer a seamless or ‘painless’ process for them.

To what extent has membership of the Standard Bank Group been instrumental to driving Stanbic IBTC’s trusteeship business in Nigeria?

The vision of our group remains to be the one-stop shop for financial services in Nigeria, and we provide services and products from cradle to grave. As Stanbic IBTC Trustees Ltd. (SITL), we close that wealth circle, providing stellar service and innovative products for our teeming clientele.

Being a part of this group, which has such fantastic offerings, has been beneficial, as the expertise gathered over the 153 years of operation stands us in good stead as we serve here in this market. We have access to wealth of experience across borders and can tap into a vast network to provide solutions as required. It certainly was the obvious way to go to share what we offer in other climes to deserving Nigerians as well.

What targets have you set for Stanbic IBTC Trustees Ltd in the next five years in terms of customer acquisition and profitability?

More than just profitability is our desire to educate Nigerians and provide them a service that adds significant value and meets a key need. We are also not focused on just acquiring clients and having the numbers and, as much as that would be a good thing, we are more committed to ensuring that every single client we have on board experiences exciting customer service from us and is a very satisfied client, who will gladly refer us to others in turn.

With a clientele of happy clients, profitability for our shareholders should then be a given.