Standard Chartered Bank transforms distribution model
Standard Chartered Bank’s digitalisation transformation journey meant to take Botswana into the future of banking, a move that saw majority of branches shutting down, has caused fears among customers that the bank might be phasing out in the country.
Botswana Guardian has established that a total of 10 out of a total 21 traditional branches throughout the country have closed down, while four extra branches have been opened for the moneyed class named Express Banking, whose services are available in Gaborone CBD, Lobatse, Jwaneng and Maun.
The latest branch to close is one of the oldest branches in Gaborone Industrial area along Old Lobatse Road. Of the remaining 11 traditional branches, four are found in Gaborone being Hemamo, Main Mall, Game City, Airport
Junction. Others are in Mahalapye, Serowe, Selibe Phikwe, Letlhakane, Francistown and Palapye.
However, in an interview, the bank’s Chief Executive Mpho Masupe allayed such fears. Speaking to the Bank’s Strategy – Masupe said as a bank they have a long-term vision for Standard Chartered Bank Botswana.
'Our results are proof of the work that has gone into the Bank’s strategic vision in the last five years. As we continue to digitise, we will continue to grow with Batswana into the future of banking to ensure that we remain agile and able to meet their banking needs in the convenience of their homes and their immediate localities,' he said, adding that they remain true to their slogan, 'we are here for good.'
Masupe said Standard Chartered Bank Botswana recently commemorated its 125-year anniversary of doing business in Botswana. The Bank, which has a long history in Botswana, is proud of the legacy that it has built for Batswana and Botswana and looks forward to another 125 years of doing business, “albeit, a very different looking business”.
Over the years, Standard Chartered has always proven to be a Bank of firsts - first in the market to introduce Setswana and Mandarin language ATMs, first in market to have a 24-hour local Call Centre, first to have the Wallet to Bank trilogy – Orange Money and Smega and first to have the only end-to-end account opening process in Botswana with biometric and Face ID security features.
He said this 125-year legacy brings with it a huge responsibility of being a good corporate citizen which represents sustainability and empowerment for the communities within which it operates.
The Bank has been a good corporate citizen and continues to give back to the community through various projects, significantly handing over more than P5 million to Future Makers Botswana entrepreneurship and employability programme run by Mebala Youth Studios located at the Lady Olebile Masire Youth Centre in Gaborone West.
This project is a Standard Chartered Foundation project which aims to upskill and reskill out of work youth to ensure that they are able to learn, earn and grow – either as business owners or as employees.
“Change is a difficult yet necessary prerequisite to growth” and the Bank has taken on this challenge to take Batswana into the future of banking. It embarked on a transformation journey in the year 2016, with the introduction of the cell phone banking and online banking.
He said in 2019, the Bank introduced the first and still only end-to-end Digital Bank in Botswana, the SC Mobile App. The App allowed clients to start a new relationship with SCB and deepen their relationship without having to step inside a branch. This revolution in banking allows customers to open an account from the comfort of their home or work and have the bank deliver their debit card directly within 48 hours.
He said the account opening process takes a painless 15 minute end-to-end. 'This has been a serious game changer for Standard Chartered Botswana and has seen us opening bank accounts in areas where we have had no traditional footprint,' he said, adding that the change was a hard one for clients and staff alike to embrace, but with the new era in banking, there have been significant strides by both to adopt and align to the Bank’s renewed strategy.
He further explained that the proof of this adaptation is in their adoption rates of 28 percent in 2019 versus 77 percent of all their clients utilising the SC Mobile App currently.
The bank is targeting to have 80 percent of all clients utilising digital channels by the end of 2023. Transaction migration has also significantly improved from 45 percent of transactions being performed digitally in 2019 to the
current state, where 96 percent of transactions are taking place across digital platforms.
'As the Bank continues to transform its distribution model, many stakeholders have felt the discomfort of this change,' Masupe said, further explaining that this was further exacerbated by the merging of branches in some areas.
He believes that the Bank’s ongoing reliance on digital channels is a testament to the Bank being a forerunner and the only international Bank in the market. He added that what was once available only in branches, is now available in the palm of one’s hand – an easier and more convenient way of banking for both the client and SCB.
He added that the level of investment that Standard Chartered continues to make on its digital channels is proof that this is long term vision and that the Bank is intentional in growing and transforming with its client base.
Masupe said while they have solved for clients not requiring a bank visit for the majority of services, they understood that as their client footprint increased, there was need to include access points nationwide for cash deposits and withdrawals.
“The introduction of Agent Banking allows us to not only reach clients nationwide, but to also ensure that our brand remains visible”.
He said launch of Eazy Pula Agent Banking service in partnership with the Botswana Post and Motovac allows clients to easily transact in real time by performing cash deposits and cash withdrawals in locations that the bank has no physical presence. These locations include areas like Shakawe, Ghanzi, Kasane, Bobonong, Goodhope and Moshupa.
'This has allowed us to demonstrate that Standard Chartered is in the process of optimising its distribution model to ensure that access to banking is decentralised and accessible to all as part of our financial inclusion mandate.'