by Mukosha Funga on 25 May 2018by Mirriam Chabala on 25 May 2018by Abraham Kalito on 25 May 2018by Zondiwe Mbewe on 25 May 2018
- Goal Diggers
by Mazuba Muleya on 24 May 2018by Abraham Kalito on 17 Apr 2018by Abraham Kalito on 10 Apr 2018by Mazuba Muleya on 20 Feb 2018
by Abraham Kalito on 24 May 2018by Stuart Lisulo on 24 May 2018by Stuart Lisulo on 23 May 2018by Mirriam Chabala on 23 May 2018
by Zondiwe Mbewe on 25 May 2018by Zondiwe Mbewe on 24 May 2018by Zondiwe Mbewe on 24 May 2018by Zondiwe Mbewe on 24 May 2018
- Editor's Choice
by Chibamba Kanyama on 25 May 2018by Diggers Correspondent on 18 May 2018by Nevers Mumba on 26 Apr 2018by Anand Rajaram and Miljan Sladoje on 4 Apr 2018
by Diggers Editor on 24 May 2018by Diggers Editor on 23 May 2018by Diggers Editor on 22 May 2018by Diggers Editor on 19 May 2018
by Sipilisiwe Ncube on 24 May 2018by Sipilisiwe Ncube on 15 May 2018by Felix Kashweka on 14 May 2018by Thomas Mulenga on 7 May 2018
- Guest Diggers
by Kalaki on 24 May 2018by Sishuwa Sishuwa on 21 May 2018by Chibamba Kanyama on 16 May 2018by Sishuwa Sishuwa on 14 May 2018
BAZ justifies high bank chargesBy Sipilisiwe Ncube on 8 Feb 2018
Bankers Association of Zambia chief executive officer Leonard Mwanza says people must shop around for a bank with lower prices that suit their needs instead of complaining about high charges.
In an interview, Mwanza explained that the pricing of products for each bank was based on the cost of their infrastructure.
He said the association had received numerous complaints about high bank charges but he always encouraged clients to look around the 17 commercial banks and pick the best for them.
“The industry has got 17 commercial banks and these commercial banks have got their own pricing structure which is independent of each other. So they come up with products, product features in terms of minimum balances, transactions, how much you pay per transaction. So those charges are peculiar to each and every institution. So the pricing is based on the cost of their infrastructure as you know for every ATM deployed, there is also a cost of fiber optic network, not just for one line but maybe another back-up line. There is the cost of distributing and holding of cash, the cost of security, CCTV, let me just say operational and administration costs are quite heavy depending on each bank’s own internal cost structure,” Mwanza said.
He said the banking sector had a bouquet of products, giving clients an option to pick the best offer that perfectly suited their needs.
“So when it comes to complaints about bank agents, our response has been that over the years, I think that there has been a complaint about the fees and charges are too high that people cannot save money, if they leave money in an account by the time they go back, they find that it has been reduced by charges. So my response to that is that it depends on what you as a client are looking for. The banking sector is the one which I would call a bouquet of various products that are on offer from the 17 commercial banks. So you will understand that there are different products that each bank has and the features for each product are different from each bank. What I can confirm to you is that there are products that are on offer which respond to the needs of those people who want to save with minimum or no charges at all. And you can shop around to get the best price for whatever account you need,” he said.
“Now when we generalize that the charges are high, there are two things I need to talk about, one, let’s shop around and get accounts that fit our space and our needs. So we have what we call entry level account for those people who can’t afford to pay the charges beyond their capabilities. If you escalate that further, you will find that there are people who have retired, they have pensioners accounts. You find that the minimum balance for opening that account is usually very low and then because of the nature of the pensioners account where money goes in once you normally find that there are no charges attached to that account. So it’s about profiling the plan and then designing the product that suits their needs.”
Meanwhile, Mwanza said the association was pleased to note that a number of banks had started reducing their product prices.
“It’s always good for people to walk around and ensure that they find a bank which meets their particular needs and fit that into their profile so that the maintenance fee that thy pay is reasonable and very assuring to their pockets,” said Mwanza.
“So I think from the association perspective is that we are glad to see that banks have over the years developed products that are free of charges and which encourages people to purely save which is a good thing. We now have those products on the market. We have also noticed that a number of banks have started adjusting their prices. We have noticed that most banks are responding in terms of scaling down on their charges. We have seen that banks are increasingly responding in terms of fees and commissions, transfer cost and things like that. But as they do so, they have to bear in mind that they have invested in huge infrastructure which is quiet expensive and they need to recoup and ensure they deliver shareholder value at the back of their mind.”
About Sipilisiwe Ncube
Sipilisiwe Ncube is a Zambian journalist with a background in radio news.
Email: sipilisiwe [at] diggers [dot] news
- Theft of public funds at Kasama Council disgusts Parley committee - 25 May 2018
- Kampyongo confirms sale of Kamwala Remand Prison - 25 May 2018
- Pharmaceutical Society notes abuse of antibiotics in health facilities - 24 May 2018
- Govt seeks over $74m for DRC refugees - 24 May 2018
- Kitwe Council paid K1.2m into employees personal account - 24 May 2018
Subscribe for email alerts
Weekly Most Digged
ArchivesJun0 PostsJul0 PostsAug0 PostsSep0 PostsOct0 PostsNov0 PostsDec0 Posts
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
The News Diggers
Plot No. Lus/9812/649-MC8
off Alex Chola Road
P.O. Box 32147
Telephone or WhatsApp:
+26-097-7708285, 095-3424603, 096-5815078
diggers [at] diggers [dot] news
editor [at] diggers [dot] news
Send this to a friend