Barclays launches visa platinum debit card
By Kabanda Chulu
Mon 24 Oct. 2011, 09:00 CAT
BARCLAYS Bank shall continue to bring innovative products to the Zambian banking sector aimed at meeting the needs and lifestyles of clients, says company managing director Savior Chibiya.
During the launch of the Barclays visa platinum debit card that is universally accepted, Chibiya said in Kitwe that the banking sector had undergone various technological changes in the past few years.
"At Barclays, we have embraced these technological changes and in responding to the needs of customers who wanted to be dealing with us throughout, even when we close in the afternoon, we decided to spread our ATM system throughout the country and our ATM system is unmatched by competitors since we have over 150 points spread across the country and there are no ATM fees," Chibiya said.
"We also have ‘SMS' alerts whereby customers can access bank statements on phone rather than visiting the bank and we also encourage customers to use debit cards to buy goods at various points of sale because it is safe and convenient. And with the visa platinum card, things will be easier for customers since they will be able to buy goods online and pay fees for those studying courses where fees should be paid abroad."
And Barclays Bank Zambia retail director Simangolwa Shakalima said the visa platinum card was universally accepted and more prestigious than other cards since it was designed to deliver international service and standards.
"Notable benefits include online activation whereby customers will be able to purchase goods through internet and the card is accepted for hotel and car hire bookings and it has access to global network of alliance partners," said Shakalima.
"The visa platinum card also brings about empowerment since customers will be able to buy what they want, and will have flexibility to manage their money."
Shakalima said the platinum card also brings about convenience since
transactions would be smooth and fast with additional benefits that
include travel insurance with a death benefit of up to US$120,000 and
medical provider referral.
Labels: BARCLAYS BANK, SAVIOR CHIBIYA
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2011 budget stirs fear among banks
By Chiwoyu Sinyangwe
Mon 18 Oct. 2010, 13:10 CAT
COMMERCIAL banks in the country are worried the 2011 national budget will hurt the local financial sector, Bankers Association of Zambia (BAZ) chairman Saviour Chibiya has observed.
Finance minister Dr Situmbeko Musokotwane has proposed to, beginning next year, charge value added tax (VAT) on fee-based banking services at the standard rate.
The move means that other than interest on lending rate, fees charged for specified banking services would attract VAT.
Commenting of the developments, Chibiya said local commercial banks feared the measures would hurt growth of the local banking sector and stifle financial inclusiveness, especially towards the huge unbanked population.
He said the local commercial banks who hurriedly praised next year’s budget soon after its announcement opposed introduction of VAT on fee-based banking services at the standard rate.
“I don’t think so that banks will benefit. We have not looked at this in detail but we don’t want to give everybody an impression that banks wanted this so that they can claim VAT,” Chibiya said. “We don’t want this. Generally speaking, we have not done our number crunching but last week Wednesday when we had an industry meeting everybody was worried about the administrative cost that would go into this.
We were worried how this will contribute in terms of bank charges at the time we are all trying to figure out how we can reduce bank charges...And what this will mean in terms of deepening financial inclusiveness because we do have a large population that is unbanked and how we will compete with other non-bank financial institutions that are doing transfers.”
Chibiya said although the move would help raise money for the
Treasury, it would certainly hurt the local banking sector.
“…this is not the drive that is being driven by banks that we want to claim VAT,” said Chibiya.
“The fact that VAT is going up to me suggest that the government has done their calculation that we will claim much less and that is the point. This was the revenue raising measure; this was not something to help our industry...the overall numbers suggest that we are not going to benefit from this as an industry from the VAT side.”
Labels: 2011 BUDGET, BANKING ASSOCIATION OF ZAMBIA, SAVIOR CHIBIYA, SITUMBEKO MUSOKOTWANE
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Banks’ high interest rates have stifled business growth - ZFE
By Namatama Mundia
Sun 04 July 2010, 04:00 CAT
THE Zambia Federation of Employers (ZFE) has told commercial banks that the high interest rates being charged have stifled business growth in the country.
Speaking when ZFE board of directors and senior management staff paid a courtesy on the Bankers Association of Zambia (BAZ) at Citibank, ZFE president Dr George Chabwera said most businesses were unable to acquire debt finance for expansion of businesses which was vital for meaningful employment creation.
Dr Chabwera noted that commercial banks where employers and therefore members of the ZFE whose operations were equally affected by the high cost of doing business in the country like any other businesses.
He called on BAZ to engage with the ZFE and lobby for a reduction in the cost of doing business and an improved business legislation.
Dr Chabwera added that ZFE was concerned with the high interest rates in the country despite a single digit inflation rate and a good economic outlook.
And BAZ chairperson Savior Chibiya, who is also Citibank managing director, acknowledged the fact that interest rates in the country were higher than expected due to several factors other than inflation rate.
“Current default rate on loan repayment stands at 15 per cent when normal default rate is expected to be 6 per cent. The high default rate is a risk factor which builds into high interest rates as banks would like to recover the lost income on non-performing loans,” Chibiya said.
“Other than inflation and default rate, high labour costs of skilled manpower, high legal costs in resolving industrial disputes, high security costs in cash transfers and high telecom expenses all build up into interest rates.”
And responding to a question on why most commercial banks were unable to provide long-term borrowing beyond five years, Chibiya said this would only be possible if depositors develop a culture of keeping their deposits in the bank beyond a period of five years.
He called on the legal fraternity to revisit their fee structure in order to make a contribution towards reducing the cost of doing business in the country.
Chibiya further called on the state to seriously look into the possibility of reducing the cost of telecommunication and also to improve the education system in order for the country to produce enough skilled manpower.
Labels: GEORGE CHABWERA, LENDING RATES, SAVIOR CHIBIYA, ZFE
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