Botswana Savings Bank is adamant it will successfully execute its current strategic plan, especially given the fact that, the bank has under its sleeve a number of initiatives that are expected to bear fruits in less than two years.- This is the message that is coming out clearly from Chief Executive Officer, Nixon Marumoloa in the latest financial report covering the year to March 2023.
The bank's Lesedi 25 strategy runs for three years. Already, the BSB most top executive is content things are beginning to take shape, one year into the strategy. “Part of broadening the revenue generation and growing profitability involved establishing a Bancassurance Unit.
I am pleased to report that Bancassurance was launched in the past financial year, and we are expecting to realise tangible results from this business unit in the years to come,” said Marumoloa, himself a career banker having worked for major commercial banks in senior management position for years.
To this end, BSB Insurance Agency, a 100 percent subsidiary of BSB has been set up to various insurance solutions. The insurance service is in partnership with Old Mutual Life Botswana and Westsure Insurance Company.
One other aspect of the business which is even more key is the digitalisation transformation. It is expected to put the BSB in an advantageous position when it comes to service delivery.
According to the CEO, BSB has over the years transitioned from a traditional Savings Bank into a semi- digital Bank, which offers a variety of competitive platforms for its customers. “Together with the technology shift, the Bank undertook to ensure the re-alignment of the organizational structure as well as its underlying business process to ensure the fulfilment of the operational requirements of commercialization.
Top amongst these changes was the adoption of the new Core Banking System, which has just completed its first financial year of being functional,” announced Marumola, adding that the Core Banking System will improve the BSB customer experience and level the playing field towards the Bank's entrance into the commercial market space. “What is expected in the coming financial year is increased customer access through digital channels and agency banking initiatives,” he said.
As part of the digital shift, the bank is phasing out the traditional passbooks as it prepares to roll out its digital channels. The digital channels will introduce new point-of-sale machines (POS), internet banking and mobile app. As things stand, all the behind-the-scenes setup, piloting and testing for digital channels have been done.
What is left is a final testing before being rolled out soon. "Online Banking will enable our customers to transact whenever they want and wherever they are at their own convenience. This is in line with the Bank’s purpose to reach the underserved members of the community. Moreover, the digital channels will ensure smoother banking and better service for our customers." As part of the ambitious Lesedi 25, BSB has also concentrated more on service accessibility and financial inclusion.
As such a new Agency Banking model that allows the Bank to reach a greater number of Batswana in all corners of the country was initiated in the past year. Agency banking gives access to banking services through retail service points that have partnered with the Bank. “The Bank continues to contract with service partners that will provide it with a presence in over 200 locations across the country.
This will provide convenience to its customers and will reduce commute time to access our services for those in remote areas,” announced Marumoloa. Human capital is key for the bank to successfully execute its strategy. In the past year, the Bank instituted an Employee Wellness Programme.
The programme places emphasis on staff welfare and provides channels that help staff through challenges. “While there are procedures, processes and machines that are used on a daily basis, the drivers behind these are our people,” said the CEO. During the year under review, profitability of the bank declined from P34.3 million in 2021/22 to P6.5 million in 2022/23. Interest income rose by 12% to P337 million. “The financial services industry went through a structural shift in the past year. The monetary policy stance changed from the accommodative regime that had been in place for more than a decade to a tightening cycle.
This came on the back of the retirement of the bank rate as a monetary policy tool to a new monetary policy rate that could better be referenced by Bank of Botswana. Furthermore, the Russia-Ukraine war exacerbated supply issues and caused run-away inflation which we had not seen since before 2008,” said Chairperson Goitsemang Morekise, stressing that these are some of the problems that affected trading conditions of the bank.
Nonetheless, the Chairperson is upbeat on the year ahead. “With one year of the three-year Lesedi 2025 strategy done, the board is of the view that management has laid a solid foundation towards implementation of the strategy. Initiatives have commenced that will bear fruit in the next two years, bringing the bank closer to the privatisation goal.
Challenges brought on by the Russia-Ukraine war are expected to petter out, returning economic conditions back to normal and allowing the bank to resume its growth trajectory," said Morekise.
The bank's Lesedi 25 strategy runs for three years. Already, the BSB most top executive is content things are beginning to take shape, one year into the strategy. “Part of broadening the revenue generation and growing profitability involved establishing a Bancassurance Unit.
I am pleased to report that Bancassurance was launched in the past financial year, and we are expecting to realise tangible results from this business unit in the years to come,” said Marumoloa, himself a career banker having worked for major commercial banks in senior management position for years.
To this end, BSB Insurance Agency, a 100 percent subsidiary of BSB has been set up to various insurance solutions. The insurance service is in partnership with Old Mutual Life Botswana and Westsure Insurance Company.
One other aspect of the business which is even more key is the digitalisation transformation. It is expected to put the BSB in an advantageous position when it comes to service delivery.
According to the CEO, BSB has over the years transitioned from a traditional Savings Bank into a semi- digital Bank, which offers a variety of competitive platforms for its customers. “Together with the technology shift, the Bank undertook to ensure the re-alignment of the organizational structure as well as its underlying business process to ensure the fulfilment of the operational requirements of commercialization.
Top amongst these changes was the adoption of the new Core Banking System, which has just completed its first financial year of being functional,” announced Marumola, adding that the Core Banking System will improve the BSB customer experience and level the playing field towards the Bank's entrance into the commercial market space. “What is expected in the coming financial year is increased customer access through digital channels and agency banking initiatives,” he said.
As part of the digital shift, the bank is phasing out the traditional passbooks as it prepares to roll out its digital channels. The digital channels will introduce new point-of-sale machines (POS), internet banking and mobile app. As things stand, all the behind-the-scenes setup, piloting and testing for digital channels have been done.
What is left is a final testing before being rolled out soon. "Online Banking will enable our customers to transact whenever they want and wherever they are at their own convenience. This is in line with the Bank’s purpose to reach the underserved members of the community. Moreover, the digital channels will ensure smoother banking and better service for our customers." As part of the ambitious Lesedi 25, BSB has also concentrated more on service accessibility and financial inclusion.
As such a new Agency Banking model that allows the Bank to reach a greater number of Batswana in all corners of the country was initiated in the past year. Agency banking gives access to banking services through retail service points that have partnered with the Bank. “The Bank continues to contract with service partners that will provide it with a presence in over 200 locations across the country.
This will provide convenience to its customers and will reduce commute time to access our services for those in remote areas,” announced Marumoloa. Human capital is key for the bank to successfully execute its strategy. In the past year, the Bank instituted an Employee Wellness Programme.
The programme places emphasis on staff welfare and provides channels that help staff through challenges. “While there are procedures, processes and machines that are used on a daily basis, the drivers behind these are our people,” said the CEO. During the year under review, profitability of the bank declined from P34.3 million in 2021/22 to P6.5 million in 2022/23. Interest income rose by 12% to P337 million. “The financial services industry went through a structural shift in the past year. The monetary policy stance changed from the accommodative regime that had been in place for more than a decade to a tightening cycle.
This came on the back of the retirement of the bank rate as a monetary policy tool to a new monetary policy rate that could better be referenced by Bank of Botswana. Furthermore, the Russia-Ukraine war exacerbated supply issues and caused run-away inflation which we had not seen since before 2008,” said Chairperson Goitsemang Morekise, stressing that these are some of the problems that affected trading conditions of the bank.
Nonetheless, the Chairperson is upbeat on the year ahead. “With one year of the three-year Lesedi 2025 strategy done, the board is of the view that management has laid a solid foundation towards implementation of the strategy. Initiatives have commenced that will bear fruit in the next two years, bringing the bank closer to the privatisation goal.
Challenges brought on by the Russia-Ukraine war are expected to petter out, returning economic conditions back to normal and allowing the bank to resume its growth trajectory," said Morekise.
