Like awakening from a bad dream, we all had expectations when we fell asleep on 31st December 2019. Many had declared 2020 as their year. However, even when the first cases of the virus from Wuhan were announced, many still held on to the nostalgia of making 2020 a great year.
Quarter one was anything but and when a number of Zambians assess the personal financing position in the first few months, it was as if some greater power was at play that had its own ideas. This is why some of us had to turn to the very people that we have entrusted to help us manage our personal finances. Our Banks.
It was clear when the central bank made the announcement that there would be an endowment of K10 Billion kwacha that would be pumped into the financial system to help ease the burden that the stability of the financial system was at stake and action was required. Some closely listened to the announcement from the head of the Bankers Association of Zambia where “its Chairperson Herman Kasekende welcomed government’s intervention and explained that the stimulus package and the accommodative loan loss provisioning standards issued under the gazette will greatly help in protecting businesses and households from financial shocks related to Covid-19”, according to the Lusaka Times.
BAZ’s statement came after the central bank had announced additional measures such as waivers on withdrawals and charges on mobile money. However, Stanbic Bank became the first bank to address the elephant in the room. Personal Loans were not immune to the impact of Covid-19.
“Things are not the same. The world as we knew it has changed…..as have our circumstances. With the entire globe reeling from the effects of the Covid-19 pandemic, we know that a lot of people have also been affected right here in Zambia. That is why we invite you to reach out to us if you are facing challenges with your loan repayments. We would like to structure some form of relief to ease the burden and find a solution to this challenge. We’re all in this together” – Stanbic Zambia
You see, despite being the biggest bank by assets, Stanbic’s core value which I personally believe has been the secret to their success is the customer focus. One can pretend that just because you have a salary it means Covid-19 does not affect you. But analyzing how much of our lives have changed since the announcement of the partial lockdown, we all soon realize the business as usual especially in terms of meeting our obligations were not going to be the same.
Stanbic Zambia’s decision to have a family discussion with its clients is not only a masterstroke at this particular moment but also a reminder of what the bank’s core focus is – the customer. The move to open its doors to have a conversation with the very clients it serves shows that they are truly in touch with not only the pulse of the economy but the reality that many of its clients are currently facing.
The bank’s actions are consistent with its position in other jurisdictions where it enjoys a dominant presence. “Uganda’s biggest commercial bank, Stanbic Bank, says it will provide loan holidays to its customers including corporate, small businesses and employed clients, to ease the economic pressure resulting from the coronavirus crisis”, according to Ugandan website softpower.ug.