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NewsDay

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MBCA navigating stormy economic waters

Business
At a time when business in Zimbabwe is at its lowest, some institutions are carving a niche and actually growing in these adverse conditions. Financial services institution the MBCA Bank, will this month open two more branches as it continues to consolidate its position on the market

At a time when business in Zimbabwe is at its lowest, some institutions are carving a niche and actually growing in these adverse conditions. Financial services institution the MBCA Bank, will this month open two more branches as it continues to consolidate its position on the market. Senior Reporter Richard Chidza (ND) talked to the bank’s head of marketing and public relations, Dedrey Mutimutema (DM). Below are the excerpts.

ND: MBCA is due to open two new branches this month. How is the bank able to pursue an expansion programme, when most businesses in Zimbabwe are either downsizing or closing altogether? DM: We took a long-term strategic view to grow our footprint in preparation for an eventual improvement in the environment. At MBCA Bank we are positive about the long-term outlook of our economy. As a result, we are working on deploying more ATMs to increase our service availability and reach.

As for our current successes, we attribute these to various actions we have implemented which include, robust systems and controls. We also have a team of well-qualified and experienced staff, drawn from a variety of disciplines to create a cohesive team. In addition, we leverage on the technical expertise of our parent company, Nedbank and have a very supportive board. At MBCA Bank, we strive to improve our customer service standards and to remain relevant in the market segments we serve.

ND: What has been the response to the home loan services which MBCA began to offer in the mid-year? DM: The response rate has been good, as our product comes at competitive interest rates and is payable over a period of up to 20 years in a market where finance for the purchase of homes is scarce. Moreover, given the level of rentals, we are offering our clients an opportunity to channel their hard-earned resources towards a mortgage instead of rentals.

ND: Any other additional information on recently launched products and services by MBCA would be most appreciated. DM: We introduced a franchising product. The MBCA franchising product is all about smart partnerships. Our unique approach allows us to deliver, through a single contact point, an integrated franchising solution. This approach includes lending, transactional and value-added solutions.

We also launched the MBCA Vehicle and Asset Finance scheme, which provides financing to companies who wish to procure various assets, replace their motor vehicle fleet or assist their staff to purchase brand new cars.

We know that SMEs are fast becoming the backbone of our economy, so we tailor-made a value proposition to especially meet the needs of SMEs. This year, as a bank we were very involved in the SMEs sector. We hosted a Women’s SME breakfast on International Women’s Day and we went on to facilitate SME workshops at the ZITF. We were also the premium sponsor for the Women In Enterprise Conference (WECCA), which is an annual event hosted by the Zimbabwe National Chamber of Commerce to support SMEs .

Our mission is to be the leading bank to all in Zimbabwe, by offering products and services tailored to meet our clients’ diverse needs. That mission challenged us to develop a product for the mass market, particularly those earning a maximum monthly income of $300. As we continued to cater for diverse client groups, we also introduced free banking for all government, mission and private schools, as well as tertiary institutions in Zimbabwe. This means that all schools who bank with MBCA Bank enjoy free banking.

More recently, we introduced an MBCA solar loan which answers to a call for solutions to the increasing power challenges in Zimbabwe. The MBCA solar loan is payable over a period of up to 36 months with favourable interest rates.

ND: Are there plans to open up more banking centres in the coming year and which areas are being assessed? DM: Our goal is to have delivery channels that are conveniently located and accessible to our growing client base. We have a plan for continued expansion of service delivery channels in addition to the two branches, Gweru and Msasa, which will be available by the end of the year. The number and timing of these channels will, however, depend on our assessment of market opportunities. ND: There are rumours in the market to the effect that there could be a merger between MBCA and another financial services provider already in property provision. What is your comment? DM: MBCA Bank is currently not deliberating on the issue of a merger with any financial institution.