How Christ Embassy’s Parallex Bank Is Different From Conventional Banks

The news of a church (Christ Embassy) owned bank, Parallex, evolving into a commercial financial institution have continued to draw wide reaction amongst the Nigerian populace, particularly via social media.

The financial institution was incorporated as a limited liability company on 22, May, 2020, and had been operating as a microfinance bank until its transition to a Commercial Bank on Friday.

Following its launch on Friday, the bank’s management promised prospective customers “unparalleled value” with certain benefits that may not be available at the respective conventional banks in Nigeria.

Our correspondent observed that aside offering a “Five Free Interbank Transfer Daily”, “No Maintenance Fees on all accounts”, the bank offers two banking experience that stands out from others.

LOANS

Parallex Bank offers what it terms as “unsecured business loans”. This implies that business customers who are seeking loans from the bank will not be required to provide a collateral (asset).

In conventional banks, before a customer is given loans for business, the individual or firm will have to provide collateral or asset based on the value of the loan they want. Conventionally, such collaterized asset is usually higher than the loan being sought.

The purpose of the collateral is to minimize the risk for lenders. If a borrower defaults on the loan, the lender can seize the collateral and sell it to recoup its losses.

FREE ATM CARDS

Parallex has wowed Nigerians with a “Free Debit Card” offer. Both collection of cards at the bank or by delivery is free.

But conventional banks collect a fee of between N1,000 and N1,500 for Verve and Master Debit Card respectively. This amount is usually charged from customers’ bank account.