23 Oct 2016

 In the 25 years of its operation, First National Bank Botswana (FNBB) has continued to grow both in size and range of services and as of June 2016, it was the largest bank by among others market capitalization, balance sheet size and profitability.

Giving a keynote address at the FNBB 25 years chief executive officer’s gala dinner, former Bank of Botswana (BoB) governor, Ms Linah Mohohlo said FNBB’s achievements have helped move the banking industry in Botswana away from the previous duopoly of two long-established banks, to the benefit of business and retail customers alike.

“You will know that the structure of the Botswana banking sector is unique, with the majority of banks being subsidiaries of major foreign banking entities, originating from at least three continents,” she said. She added that at the same time no commercial bank currently operating in Botswana was locally owned.

She said although she would have wished to preside over a banking sector with thriving indigenous banks, the range of foreign banks operating in Botswana has allowed the country to benefit from a diversity of cultures and different approaches to banking.

Ms Mohohlo further said FNBB had continued to also entrench the principles of good corporate governance, market integrity and the best banking practices.

“We should also acknowledge the consistent and unquestionable support that FNBB has received from the parent bank and I have every reason to trust that this support can only strengthen into the future,” she said.

She further reminded attendees about BoB’s long raised concern that while it was normal to expect that the parent bank would have overall responsibility for major strategic and policy decisions affecting the group, it was crucial that within this hierarchical structure, important business decisions relating to the day to day operations of a subsidiary bank were made and tailored to the needs of Botswana.

She indicated that as the banking sector expands, it was logical to expect a diversity of banking products and services at a reasonable cost and in part through increased competition.

Ms Mohohlo noted that although levels of efficiency show signs of improvement, particularly in turnaround times for loan application processing, several aspects of customer service need overhauling.

She was hopeful that banks along with BoB would continue to review charges levied so as to encourage and facilitate access to banking, ‘which is no longer a luxury but a necessity.’

“The insidious effect of the high charges is that they impede progress towards financial inclusion and they also discourage saving and all the important activity of effective financial intermediation in support of the wider economy,” said Ms Mohohlo.

She further indicated that FNBB continues to be the market leader in the development of technologically based products and services.

“In this context, it is on record that FNBB was the first bank in Botswana to introduce a pula-based credit card, internet banking, offering customers the benefit of direct, secure and continuous access to their accounts, first to introduce in-Contact, first to introduce cell phone banking, first to introduce an instant accounting solution for SMMEs, first to introduce mobile ATMs, first to introduce e-wallet and first to introduce ATM advance deposit taking(ADT) machines,” said the former BoB governor.

She said the impressive list of many firsts for FNBB over the years as well as the awards accorded for innovation are testimony to the reasons FNBB is adjudged the top bank in the country.

Employing a staff of 1 386, FNBB services a large number of customers across the country through a network of 22 branches, 134 ATMs, 34 slimline ATMs and 40 ADTs. ENDS