02 Dec 2020

Financial inclusion is key in the banking competitive markets as it improves the livelihoods of people and increases economic efficiency.

The Bank of Botswana governor, Mr Moses Pelaelo said this during the opening of Botswana Savings Bank (BSB) Limited Hukuntsi branch on December 1.

Mr Pelaelo lauded BSB for its positive response to the government desire and objective to expand financial services to under banked communities across the country.

Financial inclusion, he said, allowed easy access to savings account, credit, insurance and facilitation of payments at reasonable costs and minimal impediments.

He said being financially excluded could be debilitating and constrain development growth.

Mr Pelaelo further noted that the advent of technology through electronic means of payments, mobile money and other digital platforms offered greater opportunities for provision of financial services particularly in the context of low population density communities around the country.

He therefore implored Kgalagadi North communities to adapt and embrace the new banking digital banking methods so as to retain the financial inclusion status.

In addition, Mr Pelaelo cautioned that failure to embrace digital banking might disadvantage them in the long run since the traditional methods of banking might fade away due to lack of patronage and support as the demand and supply of new approaches accelerated and became the new normal.

On that note, he emphasised that it was pertinent for financial institutions to sensitise their clientele on the possible undesirable aspects that arose with digitilisation and financial technology.

He mentioned aspects such as susceptibility to cybercrime, card fraud and identity theft, which could result in financial losses and eventually reduce public interest on the banking systems.

Mr Pelaelo further cautioned customers to be vigilant in safeguarding their personal and account access credentials by avoiding responding to unsolicited offers and requests for personal information.

The gorvenor said for financial inclusion to be meaningful and effective, there should be some enabling factors such as the provision of infrastructure and government services to enable uninterrupted functioning of financial services to meet service level assurance by banks and expectations of customers.

Giving the BSB overview, chief executive officer, Mr Nixon Marumoloa said that as a government-owned bank, they bore responsibility to advocate for financial inclusion across the country.

He said the bank had deployed various strategies of branch and channel distribution expansion across different parts of the country; where there were no or limited banking services.

Mr Marumoloa  said in fulfillment of government’s mandate, BSB had three stand-alone branches in Gaborone, Francistown and Palapye and also four co-branded branches in Rail Park mall (Gaborone), Mahalapye, Serowe and Hukuntsi with 13 automated teller machines (ATM’s) across the country.

He mentioned that for continuous increase of their footprints, they were looking forward to open additional branches in Maun, Gumare, Kanye and Molepololole.

Mr Marumoloa said that their valuable partnership with Botswana Post had enabled them to actualise their expansion strategy and extended their services across the country through the 124 post offices country wide.

He said that the bank was currently working on implementing new systems such as digital channels to improve banking efficiency and effectiveness.

Earlier in his welcome remarks, Kgosi Merapelo Tshweneyagae of Hukuntsi lauded BSB for being the first bank to open its doors in their village.

He said they had saved them money and from travelling long distances to access banking facilities in Jwaneng or Ghanzi. ends