STANDARD LESOTHO BANK – Digitisation to Aid in Battle Against COVID-19

The Global Partnership for Financial Inclusion still rates Lesotho poorly in terms of access to modern financial services. Less than half of the population (over the age of 15) have a formal bank account. Less than 40% made or received digital payments in the past year, and less than 15% received wages or government transfers into a formal bank account. In a world ever increasing in levels of technology, automation and digitisation, Lesotho cannot afford to be left behind. That is why Standard Lesotho Bank – the country’s biggest – has been investing in new digital solutions for some time.

In July 2018, Chief Information Officer, Samuel Koatla told Enterprise Africa that the bank was busy rolling out a digital strategy which involved moving major services online. Various offerings would be digitised and new ATMs would be added to the portfolio to ensure banking is available for everyone. Initially, uptake was slow. Koatla put this down to the infancy of digital services in Lesotho and the lack of internet provision outside of metro centres.

“In places where banking services are not readily accessible, we will place ATMs so that we can bring service to the people. We are looking at adding four or five ATMs this year and those will be in much more rural areas of the country.

“The uptake on the digital side is ok. It is not where we want it to be.

“We have to make sure we align ourselves to our customers in terms of what access they have to technology,” he said. “One thing that all banks are looking at is the ability of mobile devices. That is the direction that we are taking, and we are developing for both feature phones and smart phones. We are available on both phone types and we have USSD, internet banking and a smart app. That covers all phones and all devices.”

But high data costs were still leaving many out of the reach of the full suite of digital banking services.

In 2019, Enterprise Africa asked Koatla again about the progress that was being made, and he was positive.

DIGITISING, SLOWLY

“Currently, we have converted two branches to become fully digital branches. Every branch that we work on, every way that we can touch it, we are trying to make it digital. We are forced by the clientele to still go semi-digital and semi-brick and mortar. It has been so far, so good and we are seeing the take up being ok and we hope it can increase from there,” he said.

He was also keen to point out that collaboration with mobile money players was assisting the company to go digital faster.

“The use of mobile money is really assisting in terms of financial inclusion. We, as banks, are trying to integrate the mobile networks in cases where we don’t offer such, so that we can continue to generate financial inclusion.”

He cited the World Bank’s statement on financial inclusion through digital improvements as the main driver for the business.

“Financial inclusion is critical in reducing poverty and achieving inclusive economic growth. When people can participate in the financial system, they are better able to start and expand businesses, invest in their children’s education, and absorb financial shocks,” said the World Bank.

BANK OF THE YEAR

And at the end of 2019, all of the work that Standard Lesotho Bank had undertaken was recognised when it was labelled as Bank of the Year at a ceremony in London held by industry publication, The Banker.

The publication noted that Standard Lesotho Bank has emerged as the country’s top bank, thanks to a recovery in profits, the financing of Lesotho’s nascent medicinal cannabis market (providing a M11 million loan facility to MG Health, formerly Medigrow, for the establishment of a state-of-the-art laboratory for testing and the quality control of medicinal cannabis), and programmes designed to support local entrepreneurs and small and medium-sized enterprises (SMEs). 

“We think that Standard Bank’s South African and Africa-wide network is unmatched in its breadth, depth and robustness – and we work hard to ensure that all our capabilities are at the service of our clients, 24/7, 365 days a year, on digital channels or in person,” said Thabiso Tsenki, Acting Chief Executive of the Bank.

“Our success is a result of careful planning on the back of the upgraded core banking system,” added Tsenki. “We are now positioned to become the ‘bank of the future’.”

Standard Lesotho Bank has also been a keen contributor to the development of SMEs, launching an entrepreneurship development programme in 2018 which includes a physical hub for entrepreneurs to use, along with a training programme for selected SMEs and various loan packaged for businesses starting up in the country.

Winning of this award was an important milestone for Standard Lesotho Bank, ensuring its clients that business was very much running as normal despite the loss of CEO Mpho Vumbukani in September. Vumbukani had been with the company since 2011 and was thanked for his contribution by the board. His replacement was announced recently as Kenrick Cockerill who will take over from Acting CEO, Tsenki as of April 1.

LEADERSHIP CHANGES

Cockerill is a Standard Bank veteran boasting 32 years with the company and experience all over Africa. He has headed teams in South Africa, Botswana, DRC, Nigeria, Malawi, Uganda, Kenya, Mozambique and most recently in Tanzania.

Now is a challenging, difficult and interesting time for Cockerill to make the move to Lesotho as the global coronavirus pandemic engulfs the entire global economy in its much-feared grip. Many of Lesotho’s neighbours are taking unprecedented measures to slow the spread of the virus, and this has taken its toll on the economic climate. Movement restrictions and trade slowdowns have resulted in banks being asked for patience and adaptation.

Lesotho has yet to feel major effects from the outbreak (at time of writing), but most expect it to cause at least some discomfort in the small African nation.

Standard Lesotho Bank has been monitoring the situation and is prepared to help. At the end of March, the company announced that preventative hygiene measures would be rolled out at branches and ATMs. Delivery of sanitisers and extra cleaning was started immediately. The bank then encouraged the use of digital solutions to reduce gathering in numbers.

GO ONLINE, BE DISTANT

“With regards to your banking, we advise all clients to use all electronic banking channels for their banking as much as possible. These include Internet Banking, Mobile Banking, and App services. The use of these channels will limit visits to branches to reduce exposure. However, all branches and ATMs are being regularly sanitised to ensure a safe environment for clients whilst visiting branches. Whilst making use of electronic channels, utmost care must be exercised to ensure that due diligence is taken to avoid cybercrime. Clients are always urged to ensure the safety of their PIN and passwords.

“As the banking sector, we reaffirm our commitment to join the world in combating COVID-19 and to cooperate with the Ministry of Health and other interest groups to arrest this pandemic. The wellbeing of customers, staff and the nation is important to us. Let us all be vigilant and exercise all preventative precautions to be safe,” the bank said.

Later in March, as the situation worsened around the world, further information was released for those in Lesotho. Data free access would be offered up to those using the Standard Bank App via Vodacom (with Econet soon to follow).

“We are extremely delighted to introduce this development during such a critical time when we are facing the COVID-19 global outbreak. This new offering comes at a time when we, as the Standard Lesotho Bank are encouraging clients to reduce instances of going into branches and ATMs, in order to encourage Social Distancing, to help reduce the potential threat of coronavirus spread, which has now been declared as a global pandemic by the World Health Organisation,” said Selloane Tsike, Head of Personal and Business Banking.

At the start of April, the banking sector in Lesotho – made up of the Central Bank of Lesotho as the regulator along with FNB Lesotho, Lesotho PostBank, Nedbank Lesotho and Standard Lesotho Bank – joined forces to donate M2million towards the fight against the outbreak of COVID-19 in the country.The money is set to be used to deliver vital educational measures that ensure Basotho are prepared.

More than two million people call Lesotho home and the economy thrives as long as its trade with South Africa and other neighbours remains strong. For now, that interdependence will be strained and the banking sector will be called on to assist as much as possible to help individual consumers, entrepreneurs and larger businesses.

Standard Lesotho Bank has been doing this for many years, and its efforts have been acknowledged. This ‘bank of year’ has a tough time to come, but is well-positioned as the industry leader to help its country.

As more and more are encouraged to go digital to minimise the spread of coronavirus, Standard Lesotho Bank offers the original and best service in the nation and is committed to helping its customers through to the other side.