Caleb M Fundanga: Access to improved financial services in Zambia
Remarks by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the Standard
Chartered Bank M-Banking Media Launch, Lusaka, 17 March 2009.
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The Standard Chartered Bank Plc - Managing Director, Ms Mizinga Melu
Management and Staff - Standard Chartered Bank Zambia Plc
Members of the Press;
Distinguished Guests;
Ladies and Gentlemen
I am honoured and thankful for the invitation to officiate at this important launch of the
m-Banking product.
Distinguished Ladies and Gentlemen; allow me to begin by commending Standard
Chartered Bank for the important role it continues to play in the financial sector in Zambia.
Since 1906, when Standard Chartered Bank was established in Zambia, the bank has grown
to be one of the biggest players in the market. As at 31 January 2009 the bank accounted for
about 15% of the banking sector's total assets, while its deposit base accounted for 18% of
total sector deposits. More importantly, the bank's loan portfolio accounted for 13% of the
total loans in the sector.
Madam Managing Director, I congratulate you for the Bank's commitment to providing
products and services that best suit the needs of customers. This, in my view, should be
emulated by other banks to ensure that more people have access to banking and financial
services that are tailor made to meet the needs of customers. Under your leadership the
bank has continued to bring to the banking sector an array of products and services that
provide convenient alternative channels that lead to customer satisfaction and improved
service delivery.
The introduction of new products and services such as mobile banking, internet banking and
e-statements provide customers with greater flexibility in their banking requirements,
enabling them to transact at their own convenience, knowing that their finances are
completely secure. This will no doubt enhance customer confidence in the banking system in
Zambia.
Ladies and Gentlemen, I am reliably informed that the m-Banking product we are launching
today, will allow the bank to reach out to many more customers. This will increase the
number of people with access to the financial system. At Bank of Zambia, we believe
strongly that wider access to financial services through positive action by the banking
community is vital. We also believe that the driving force will be banks and other financial
institutions searching for new, profitable market opportunities.
Furthermore, a key element in the strategy of poverty alleviation is the provision of financial
services to the majority of our people especially the small and micro entrepreneurs who are
financially excluded. Access to improved financial services, through the provision of better
ways of accumulating savings and access to credit to augment accumulated savings, avails
funds for investment in income generating projects that help the public to lay foundation for
better standards of living for themselves and their families.
Madam Managing Director, as your bank introduces these products on the market, please
ensure that the pricing aspect is also critically looked at. Many a time a good product is
introduced on the market yet it is out of reach of ordinary citizens due to the costs associated
with the products. Consumers of these products expect an affordable service if indeed these
are new and innovative products. Banks need to show more commitment to the growth and
development of the country by encouraging more Zambians to open bank accounts through
provision of easily accessible and affordable products and services.
As I end my remarks, I want to remind all players in the financial sector that some of the
challenges we face in our country today can indeed be mitigated by all stakeholders playing
their respective roles. In particular, we have seen food prices increasing dramatically in the
past few months. This is despite Zambia possess vast arable land, relatively good weather
and plenty of fresh water.
Further, Zambia is predominantly an agricultural country, but lending to agriculture has been
limited. The challenge therefore is to devise financial products that meet the requirements of
the sector while at the same time devise means of protecting the financial institutions from
the risks associated with lending to the agricultural sector. A vibrant Agriculture sector will no
doubt lead to a vibrant economy less dependent on the mining sector.
I hope that Standard Chartered Bank will lead the way in establishing affordable products
and services for our small scale farmers throughout our country. I encourage you Madam
Managing Director in your capacity as the Deputy Chairperson of the Bankers Association of
Zambia to expand your horizon and collectively join hands with all stakeholders in addressing
this problem.
I thank you for your attention.