Botswana Post considering introducing postal banking

Botswana Post is considering establishing a postal bank offering all banking services in response to the advancement of digitization technology, which has recently affected the traditional business operations of postal services.

Botswana Post Chairman, Nathan Kgabi, said this is how they could underpin the future sustainability of the company by greatly expanding the range of services available to customers because the communications business is becoming more competitive. “Picture it: a new, state-owned bank based on our vast postal network that offers a wide bouquet of services one would normally find at a bank,” he said, adding that it is a unique national resource stable financial partner who creates economic support, community cohesion and social upliftment opportunities.

He highlighted that postal banking is common in many parts of the world, and it’s time to seize this opportunity in Botswana. “At Botswana Post, our leadership team has a proven track record. We have shown that we can manage change, complete an organisation-wide digital migration and roll out new products that delight our customers and have what it takes to venture into post-banking in a meaningful way.”

During 2021–2022, Botswana Post launched a virtual teller machine in five locations countrywide. This is a self-service solution that effectively replaces the customer’s need to transact over the counter. Open 24 hours a day, the Virtual Teller Machine makes it even easier to buy airtime, and electricity units, pay for DStv and renew Post Box subscriptions.

The postal service’s profits have recorded a 211 per cent increase to P64 million, recovering from a loss of P53 million in 2021 due to the execution of its digital strategy during the financial year ended 2021–2022. Botswana Post Chief Finance Officer, Ofentse Mabote, stated that the agency segment of the business houses a suite of services which are highly technologically driven. “Overall, this category grew by 6.9 per cent. Leading the charge were payments and collections services which grew by 12.1 per cent and the Electricity Commission at 15 per cent.”

He revealed that airtime commissions and money transfer commissions declined by 40.9 percent and 11.4 percent respectively. “These two lines are hampered by high competition and low airtime stocking levels.” Mabote said in response to this competition, Botswana Post is developing increased money transfer channels and improving its efficiencies, which will allow the company to improve its margins in future. He said Botswana Post continues to implement its technology-driven strategy, building smart partnerships with third parties to optimise its revenue generation opportunities. “We are improving our systems to create efficiencies that will help upgrade our customer service, reduce costs and improve profitability.”

Launched recently, First Capital Bank’s zero-cost savings account called the Lefika Savings Account has been designed with personal customers’ needs in mind, and aims to support their savings goals, whilst building and encouraging a culture of saving in Botswana.

In launching the product, First Capital Bank said the account offers customers the opportunity to save regularly in the medium term and access funds only in times of need.

First Capital Bank notes that the Lefika savings account is one of the many customer solutions from the bank designed to address existing customer needs in the market to offer them relevant solutions that are focused on their financial needs.

First Capital Bank Country Manager for Retail lending, Thatayaone Matlapeng said the bank is focused on meeting its customer’s financial needs by introducing nimble and relevant products.