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. * * * 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

banks have responded to these challenges by reaching out through new branches. however, banks need to be mindful of the fact that the many of our people who need these services most of all are not able to bear the heavy charges that are sometimes levied, and the goal of inclusion will stand to be compromised if this matter is not addressed. the bank of zambia is in the process of engaging the banks with a view to finding a solution to the high cost of banking which is often cited as the main hindrance to access to finance. i therefore appeal to all the banks operating in zambia to critically assess the level of their charges and to continue playing the supportive role to development that they have in the past. in this regard, i am particularly pleased to make mention of the spirited efforts that standard chartered bank continues to make in financing sme ’ s and micro - finance. the experiences of many economies show that these sub sectors have the capacity to create a middle class and to emancipate both rural and urban dwellers from their poverty trap. zambia has many promising entrepreneurs whose only constraint is affordable funding. as you explore the opportunities that this new venture will bring you, i urge you to focus on the customers who may appear small today, but could grow with the bank if they are given the right support. i wish you every success as you embark on this journey into north western province.