Banks respond to call for improved service
Boitshepo Majube | Friday October 11, 2013 15:26
Government has argued that despite high levels of profitability and solvency among banks in Botswana, the banking system generally does not seem to invest adequately in human capital, payment infrastructure, public education and other social projects.
With a market share steadily hovering between 22% and 25%, First National Bank (FNB) revealed when announcing its financial results recently that it will intensify customer education to cut costs and improve service.
The bank said it is concerned with the high volumes of clients who still flock their branches for services they can do outside the bank through platforms such as electronic banking.
'We are concerned about the charges, the bank charges are much lower outside the bank than inside the bank, so our strategy in curbing the pinch felt by our customers is to intensify education and explain to them the benefits of e-banking as it offers cheaper prices and reduces queues,' FNB Chief Executive Officer Lorato-Boakgomo Ntakhwana said.
She noted that their strategy is focused on taking customers outside the bank.
Standard Chartered Bank Chief Executive Officer Moathodi Lekaukau said service and process improvement continues to be their core focus, citing their recent 24 hour contact centre.
'Investment in recruitment, retention and development of our human resources remains a key priority,' he said.
Lekaukau noted their continued focus on enhancing their digital capabilities through customer education on online banking, straight to bank and mobile banking.
Standard Chartered Bank has noted that it works with communities to deliver programmes that promote social and economic development focusing on health, youth and financial education. In February 2013 through a campaign dubbed Seeing is Believing, the bank's global initiative to tackle avoidable blindness, a three year partnership was launched with Addenbrooke's Abroad and the Ministry of Health.
'The commitment from Standard Chartered is valued at P4 million for the project which will assist the government to improve and develop services to prevent blindness and low vision amongst diabetics, children and those with refractive error'.
Vice President Dr Ponatshego Kedikilwe said officiating at the launch of the FNB branch at the Central Business District recently that lack of investment by banks explains, in part, the comparatively low operating and infrastructure costs which do not necessarily reflect banking sector high productivity and efficiency. He pointed out that the social projects financed so far by banks are very small when compared with what is in place in other countries of the region, particularly where the banks are headquartered.
Government urged banks to expose Batswana to the intricacies of banking, such as treasury management, wholesale and investment banking, to develop a pool of relevant skills in the country.
'This will ensure that citizens are adequately prepared for meaningful roles in the leadership and management of banks,' Kedikilwe said.
He said the skills deficit could also partly explain a growing trend of migration of core banking activities, such as Information Technology support functions, to regional group centres.
'While cost synergies and economies of scale generally yield positive efficiency benefits to banks, this consideration should not be at the expense of local capacity building and skills development as well as job creation,' he said.
He said that it is therefore highly desirable for banks to devote a reasonable portion of their budgets to training and skills development, even academic training for deserving staff, as this would lessen the government burden of financing the education sector.Government urged banks to show willingness to invest in the country's payment infrastructure to enhance its security and efficiency.
'Indeed it's about time that financial transactions in Botswana, especially cheque clearance, should take place in a shorter period than the current maximum period of four days,' Kedikilwe advised.