Postal bank in the offing
The business landscape for postal services has significantly shifted as digitization advances and communications business becomes more competitive. In response to these trends, Botswana Post is considering to establish a Postal Bank, offering all banking services. Botswana Post Chairman, Nathan Kgabi said this is how they could underpin the future sustainability of the company by greatly expanding the range of services available to customers.
“Picture it: a new, state-owned bank based on our vast postal network, which offers a wide bouquet of services one would normally find at a bank.” he said, adding that it is a unique national resource stable financial partner who creates economic support, community cohesion and social upliftment opportunities. He highlighted that Postal banking is common in many parts of the world and it’s time to seize this opportunity in Botswana. “At Botswana Post, our leadership team has a proven track record. We have shown that we can manage change, complete on organisation-wide digital migration and roll-out new products that delights our customers have what it takes to venture into post-banking in a meaningful way.”
During 2021/2022 Botswana Post launched a Virtual Teller Machine in five locations countrywide. This is a self-service solution which is effectively replacing the customer’s need to transact over the counter. Open 24 hours a day, the Virtual Teller Machine makes it even easier to buy airtime, electricity units, pay for DStv, and renew Post Box subscriptions. The postal service profits has recorded 211 percent increase in profits to P64 million recovering from a loss of P53 million in 2021 due to the execution of its digital strategy during the financial year ended 2021/2022. Botswana Post Chief Finance Officer, Ofentse Mabote stated that the agency segment of the business houses a suite of services which are highly technologically driven.
“Overall, this category grew by 6.9 percent. Leading the charge were payments and collections services which grew by 12.1 percent and electricity commission at 15 percent.” He revealed that airtime commissions and money transfer commissions declined by 40.9 percent and 11.4 percent respectively.
“These two lines are hampered by high competition and low airtime stocking levels.” Mabote said in respons.. Botswana Post is developing increased money transfer channels and improving its efficiencies, which will allow the company to improve its margins in future. He said Botswana Post continues to implement its technology-driven strategy, building smart partnerships with third parties to optimise its revenue generation opportunities. “We are improving our systems to create efficiencies that will help upgrade our customer service, reduce costs and improve profitability.”