Maravi

Barclays introduces new account

Barclays introduces new account
By CHIWOYU SINYANGWE

BARCLAYS Bank Zambia (BBZ) Limited has the introduced 'Tonse Bank Account' meant to respond to increasing demand for banking facilities in the country with a minimum balance of K40,000. The bank is targeting people in lower income bracket. BBZ Head of Corporate Affairs, Augustine Seyuba, said the introduction of the low minimum balance account was in-line with current favourable market environment in the financial sector Zambia.

Speaking in interview in Lusaka over the weekend, Mr Seyuba said his bank had seen the huge potential in Zambian market and was in the process of opening fifty more branches in the country to tap into the potential. He assured that 'Tonse Bank Account' would offer the same products and facilities as other existing BBZ accounts but would attract a lower minimum account of K40 000. "The Tonse account is in-line with our response to the marketing environment in the country.

We have seen that there is huge potential which we want to take advantage of," Mr Seyuba said. Meanwhile, BBZ says its greatest risk to the expansion of the loan facilities to small and medium entrepreneurs was lack of audited financial results by most local businessmen.

Head of Retail and Credit department, Henry Nyimbili said the bank was merely relying on its internal records to ascertain each entrepreneur's ability to access future loans. He however said his bank was working with a number of association for local entrepreneurs like the Zambia Chamber of Small and Medium Business Associations (ZCSMBA) to help ascertain the capability of any entrepreneur to service loans by getting recommendations from the associations. "Our biggest risk involved in the giving loans to SMEs is that most of them can't afford audited financial accounts, so it is very difficult for us to ascertain their profitability.

However, we are able mitigate this by relying on our internal records to ascertain the track records of such entrepreneurs," Mr Nyimbili said. Mr Nyimbili was speaking over the weekend on Barclays Zambia Radio Show on Q FM radio And Mr Nyimbili said the establishment of the Credit Reference Bureau (CRB) would help to improve the credit culture in the country. "The advent of the CRB would help in the accessing data which is centrally deposited, and also help the lenders to check the past record of their would be client in dealing with other institutions," He further added.

Labels: BANKING

posted by MrK @ 7:25 PM