“As part of the bank’s quest to fulfil its financial inclusion mandate, Botswana Savings Bank (BSB) has focused more on expanding its footprint across the country to take its services to the communities it serves during the 2020 fiscal period” said Nixon Marumoloa, the Bank’s Chief Executive Officer (CEO).
According to the CEO, BSB’s focus in 2020 was expansion, visibility, continued mobilization and delivery of its inclusive finance agenda to provide simple, appropriate and accessible financial solutions to the under-served in a sustainable manner.
“In order to achieve our goal, the bank had to make compromises on some of our short-term goals in order to fulfil long term solutions to our customers. In advancing the bank’s financial inclusion agenda, we are proud to announce that BSB launched four (4) Automated Teller Machines (ATMs) in Gaborone, Mogoditshane, Old Naledi and Bokaa. This is in partial fulfillment of our strategy and commitment to our communities to ensure that our products and services are accessible to all. It gives us pride to be the sole service provider in these areas where financial services were previously non- existent,” Marumoloa said.
Botswana Savings Bank is currently approaching the final year of its strategic period of 2016-2021. Marumoloa said BSB is now more determined to ensure that the Bank totally transforms to provide life events, cradle to grave products through digitised service channels for all income groups in Botswana and beyond.
Improved products will be launched into the market during 2021, moving on to 2022. The highlight product for the new financial year, according to the CEO is the Pensioners Loan facility.
“This product will ensure that the marginalised senior citizens continue to have financial freedom and access to financial services during their years of retirement,” he noted.
Further, the BSB CEO added that it is in the final year of the strategic period that the digitisation and integration programme will be executed and partially completed, with some elements overlapping into the following financial year. He said Point of Sales Machines will be deployed across the bank’s network to enable the phasing out of passbooks which will be replaced with Visa enabled BSB Debit Cards.
“As other banks close branches, we will open new branches and service points across the country to ensure we live up to our mandate of financial inclusion,” he stated.
The History of BSB stretches back more than 20 years. The bank has since experienced transformational growth, moving from a traditional bank to a 21st century financial institution with independent branches in Gaborone, Francistown, Serowe, Mahalapye and Hukuntsi.
The BSB Chairman Mr Kealeboga Molelowatladi added that BSB continues to increase its physical proximity to its customers as part of its financial inclusion mandate which has been embedded into the bank’s corporate strategy.
“Ultimately, our goal is to increase our footprint and brand visibility as we provide affordable savings solutions across the country,” he expanded. Moreover, Mr Molelowatladi highlighted that The Bank is determined to ensure that it delivers on it’s five-year strategic plan by end of 2021. He noted that the bank has embarked on various long-term projects that are currently work in progress.
These projects are part of the bank’s growth strategy with a focus to increase our footprint in Botswana.
Mr Molelowatladi stated that, this includes the opening of new branches across the country to ensure that BSB’s services are accessible to all Batswana.
However, he revealed that a major drawback in implementing the bank’s strategy was lack of integration of systems. As a solution however, he affirmed that the Bank is working on implementing new systems to improve the bank’s efficiency and effectiveness.
“We are looking forward to the phasing out of the traditional passbooks as we introduce digital channels and automate our processes for customer convenience. We remain confident that despite the rapid changes in our economic environment, our strategic priorities will enable us to drive sustainable growth for our business,’ he said.
During the same period, he also revealed that the bank identified a superior banking system that will be implemented and rolled out by 2021. He said, this banking system shall be the backbone in the bank’s digital transformation. In his views, it is through this system that the bank will optimize its internal processes to provide a sound value proposition to Batswana and improve profitability of the bank by reducing the cost to income ratio.
The Bank continues to be profitable, with the year ended 31 March 2021 returning a modest profit after tax of P5.2 million due to pressure on both revenue and rising costs. Although the result could be easily read as a regression on the results of the year before, a simple reduction of the government grant received in the previous year paints a picture of a bank that is set to realize an improvement in its operating margins when measured by a significant growth in advances. The bank’s balance sheet continues to grow year on year.
As a result of the COVID-19 pandemic, hinderances have become quite the norm but the Bank has managed to persevere and remain true to its strategic objectives. This reflects the undeniable resilience and the progressive leadership that is at the helm of the Bank. The expansion plans that are underway are a harbinger of the growth and success that BSB is on the verge of achieving.
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The Botswana Public Officers Fund (BPOPF) is now mandated by law to have pension fund administration and investment management conducted by independent licensed entities.
This means that these functions must be fully outsourced. This became necessary due to the enacting by Parliament of the Retirement Funds Act in 2014 (RFA Act) and the promulgation of subsidiary legislation governing the RFA Act by the Non-Bank Financial Institutions Regulatory Authority (NBIFIRA).
Therefore, the outsourcing project name coded Gata Le Rona journey comes to completion as the BPOPF hands over fund administration outsourcing services to NMG Administrators Botswana. NMG Administrators Botswana will be collecting contributions on behalf of the BPOPF, maintain all Member records, payment of claims, permit any excess cash to the BPOPF for investment and manage pensioner payroll. The BPOPF remains committed to building brighter futures together.
Following a significant 19-month long transition journey, the Botswana Public Officers Pension Fund (BPOPF), officially handed over fund administration services to NMG Administrators Botswana, as the outsourcing project comes to fruition. The project, which began in October 2019, commenced following amendments to the Retirement Funds Act (Section 15 (i).
Effective 2 June 2021, NMG Administrators Botswana will collect contributions on behalf of the BPOPF, maintain all Member records, payment of claims, permit any excess cash to the BPOPF for investment and manage pensioner payroll.
Noted CEO of the BPOPF, Mr. Moemedi Malindah, “This is a large-scale project and one we are proud to say was managed with the utmost diligence, with our Members at heart in all that we did and indeed continue to do. The BPOPF continues to engage all key stakeholders to ensure this transition is a smooth one.
Members can be rest assured that their pensions and benefits are not affected as NMG Administrators Botswana takes over the day-to-day fund administration tasks. This is a bright new chapter and we are more than ready and confident in the future.”
NMG Administrators Botswana is a joint venture between Lecha Administration (a company owned 100% by the BPOPF) and NMG South Africa. Lecha Administration owns 51% shares and NMG South Africa owns 49% shares in NMG Administrators Botswana.
“Re a leboga, Batswana, for your patience and support; especially our valued Members. We remain committed to investing in your golden years and building a brighter future together,” concluded Malindah.