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(HERALD) Zim banks fight ‘credibility’ crisis

Zim banks fight ‘credibility’ crisis
By Walter Muchinguri

THE adoption of the multiple currency system and the subsequent transition from Zimbabwe dollar wages to those in foreign currency has renewed focus on banks. But the credibility of the sector continues to be in serious doubt among most Zimbabweans, who are being forced by circumstances to use the banks.

In most instances, people using banks are employees forced to open bank accounts to receive their salaries. This has led to the banks jostling for the few clients available. The fight for clients has prompted banks to literally "think outside the box" and come up with innovative packages to attract the new and old clientele.

As a result, there have been several packages and services introduced in the market in recent months.

Most banks have even teamed up with external partners to bring in new technology, concepts and services.

TN Financial Bank, the latest entrant into the sector, has introduced a new way of business to bring banking to the client.

The concept, as explained by group chief executive, Mr Tawanda Nyambirai, is premised on the bank’s officials going out to meet the clients, as opposed to the clients coming to do business at the bank’s branches.

"We have banking lounges, as opposed to banking halls, because we only want our clients to visit us for the complicated transaction," he said.

"We prefer to visit our clients to meet their banking needs for we want our clients to concentrate on

their business and generate more money, while we handle their banking needs, because that is what we do best."

Another bank, FBC Bank recently launched a United Kingdom-registered global cash transfer facility called Instant Cash, that seeks to ensure efficiency and speed in the transfer of money from anywhere into the country.

Instant Cash is a state-of-the-art electronic money transfer system that ensures instant payment of cash from point to point, using the Internet as a medium of inexpensive data transfer over a secured and encrypted payment gateway.

The bank said locals could send or receive up to US$7 500 using the new facility as provided in the last Monetary Policy.

Elsewhere, Premier Banking also sought an alliance with South African FNB to have its clients issued with travellers’ cheques in South Africa after American Express withdrew its services from the country last year.

The bank was also the first to enable its automated teller machines (ATMs) to dispense foreign currency.

In addition most banks have been reintroducing the Point-of-Sale facility in response to growing calls for a reduction in cash transactions in favour of plastic money.

Kingdom Bank has gone a step further — offering cash-back facilities in supermarkets it offers POS machines.

In the Mid-year Monetary Policy Statement, the Reserve Bank of Zimbabwe, in promoting electronic means of payment, collaborated with the banking industry and other stakeholders to ensure inter-operability of cards on the local switching platform (Zimswitch).

"All card issuing financial institutions have since become members of Zimswitch," the RBZ said.

"However, while a significant number of banks have become active on the platform, a few banks are still finalising the required technical modalities.

"In addition, the central bank is encouraging financial institutions and other relevant players to promote the spread and use of POS devices throughout the country.

"It is envisaged that the use of cards will relieve pressure on change and the demand for cash which has to be imported from outside the country."

In addition, the central bank also announced that it had engaged Visa International on international cards.

The card company had given the RBZ a firm commitment to work with the local banking community to ensure a return of the Visa platform that enables international visitors to spend their money in Zimbabwe.

Analysts believe the various services and packages introduced so far "are a good development for the country".

"Everywhere in the world, banks are the epitome of trust," said a local analyst.

"In Zimbabwe, there is no trust in the sector, and these facilities would help restore confidence in the banks, because Zimbabweans, by their nature, are a progressive people, who respond to changes in technologies and services.

"In addition competition lowers charges. So, it also works in attracting clients to re-invest in the sector."

Another analyst said the introduction of new services would help boost employment levels.

"There are a lot of bank employees going on forced leave and the introduction of new services would help attract some of that manpower, as more business comes through," he said.

Labels: BANKING, ZIMBABWE DOLLAR

posted by MrK @ 4:36 PM