Digitisation drive is gathering pace
PAN-AFRICAN financial services powerhouse, BancABC reported steep rises in revenue during the half-year ended June 30, 2020. e bank says in is well-placed to meet the December 2021 deadline set by the central bank to beef up capital thresholds. But as managing director, Lance Mambondiani (LM) tells our reporter Brenda Mutetwa (BM) in this insightful interview, BancABC will ride on its robust digitalisation drive to topple big guns in the game. e BancABC boss has lined-up more market surprises as the year comes to an end. Find them as you read along:
BM: Tell us about your passion for innovation and digitisation?
LM: One of the most important characteristics in a human being is passion. Skills and knowledge can be taught, but you can’t teach passion and commitment. If I agree to an assignment, I am agreeing to pour my heart and soul into it. I am passionate about change and innovation. Digitisation is just but one of the tools to achieve innovation. I absolutely love what I do because I am extremely passionate about out of the box thinking and relentless innovation. I like being a part of something greater than myself. Leading with action, not words and aspiring to do better in whatever assignment I am favoured to lead.
BM: What achievements have you made in your career?
LM: I wouldn’t be able to tell you this. ose I have been privileged to serve in a position of leadership will testify that I am driven by the future and not the past. I live by the principle that ‘innovation is the only constant’ and that you are only as good as your last innovation. I have never sat down to count my successes. I don’t find fulfilment in yesterday’s manna. I am motivated by the next idea, the next big disruption and how we can make it relevant to the people. In whatever I do, I try as much as possible not to chase success, but significance. I believe that success is about an individual, but significance is about others. Significance is the impact we have on others because of our talent, ideas, our work or calling no matter where we are called to serve. e greatest gift that any leader can give others is hope. If one kid from Chitungwiza reading this interview gets the inspiration to improve themselves, then I consider this interview a success.
BM: Have you encountered any drawbacks?
LM: ere have been many drawbacks. I have failed many times but I have never been scared of failure or making mistakes. We learn often from our failures than we do from our successes. In my recent interview with the CEOs Magazine I recalled a very challenging information technology (IT) problem that we encountered at my previous job. It almost got me fired. We grew too quickly and our IT infrastructure couldn’t sustain the growth. We were not prepared for it. is was one of the greatest tests I encountered in leadership. Every leader is engaged to cause change and to make sure that they leave an organisation in a better than they found it. But causing change comes with risks, pain and sacrifices that a lot of leaders may not be willing to take, as this can include losing your job. I would rather do something and be wrong than do nothing and be right.
BM: How has Zimbabwe’s economic situation affected your innovations?
LM: I have been fortunate to live and work in a few countries, the longest of which was in the United Kingdom. In comparison I absolutely love working in Zimbabwe. Without a doubt, we have many challenges. But these challenges also present our greatest opportunities. We can do things differently, introduce new innovations and borrow and localise some ideas from other countries. Innovation is about solving people’s problems and the introduction of relevant solutions to address day to day challenges. e current environment gives us a change to do that. We need to dream crazy, take calculated risks, and challenge existing business and operating models. We need to support our aspirations with purposeful action. We must be decisive. We must execution our tasks quickly and forget whatever challenges we face. e job of any innovator or change agent is to think of the solution and not the problem.
BM: How much have you committed to digitisation and other innovations?
LM: Ideas come freely to all of us. Innovations should be embedded as a culture within an organisation. I have never believed in hiring consultants to bring ideas or build a new product or service. I believe in hiring hungry, forward looking young employees. I then give them the freedom and licence to innovate and challenge the status quo. For us to build a culture of innovation, all of us need to think like entrepreneurs. We must give experimentation the room it deserves.
BM: Have you unveiled new innovations this year?
LM: is has been an exciting year for us. e team launched several innovations to the market such as Branch X. is is our virtual branch that allows our customers transact without visiting any of our branches. We also launched the Dial-A-Visa service, which was well received by the market.
We managed to revamp our internet banking platform and introduced A360, our award-winning mobile App. We also introduced Ally, our WhatsApp banking service.
In the past few weeks we launched what is proving to be the hugely popular “City Hopper” domestic remittance service, which allows Zimbabweans to send foreign currency to any city from our branches. It’s been a busy year for us. We are increasing the pace of digitisation of our platforms to increase convenience and efficiency for the benefit of our customers.
BM: What are you doing to improve your contribution to your parent company, Atlas Mara?
LM: e shareholder has on many occasions expressed their full commitment to Zimbabwe. As you know, BancABC has its roots in Zimbabwe. is is an emotional market for us. Despite the challenges we face, you will be surprised to know that the Zimbabwean franchise remain one of our most profitable businesses across the markets in which we operate. Despite the headwinds ahead, my management team and I are extremely positive about the long-term prospects of the business and our ability to deliver on our promise — to become a top tier financial services provider in the country. We promise to deliver innovative and relevant financial services to our customers and every Zimbabwean who uses our services. is we do to preserve value for our shareholders.
BM: Tell us about your capitalisation levels. Are you well placed to meet the 2021 deadline set by the central bank?
LM: A bank’s capitalisation is one of the key indicators of stability. Banking is about confidence especially in this environment where public confidence in banks has previously been eroded. As a Tier 1 Bank we are fully committed to meeting the December 2021 US$30 million capital requirement deadline. More importantly, we want to give comfort to our customers that we are a strong, safe, sound and financially stable bank. We want to become their bank of choice. We are here to stay. Zimbabwe is our home.
BM: Loans are declining. How can banks survive this phase?
LM: Ensuring operational and financial resilience is one of our key objectives during a crisis. e primary focus has been cost management and capital and liquidity preservation due to the hyperinflationary environment. However, we have continued to support our clients. e bank has also increased focus on group related trade transactions in the various markets in which we operate. is has been done to extract maximum synergistic advantages from our regional presence. As a responsible lender, we have been cautiously conservative in our lending. We have been underwriting whilst still playing a critical role in supporting our customers in expanding their projects through our very active corporate and investment banking unit.
BM: Have you managed to access fresh lines of credit?
LM: Accessing fresh money remains a key objective for us as an institution and for the country as a whole. is is critical in increasing the support we give to our customers and in spurring economic growth. With the assistance of the Reserve Bank of Zimbabwe, this is something that we are actively engaged in.
BM: Tell us about your 2020 outlook?
LM: Our vision is to be a top five financial institution by the end of this year. To do this, we must relentlessly execute on the deliverables that we have set for ourselves no matter the challenges we face. e substantial growth in income reported in our June 2020 half year results is testimony to the progress that we have made towards this objective. at is to be a relevant, top financial services player in the country.
We want to provide efficient and innovative financial solutions to our customers and Zimbabweans who requires our service. I believe we are on course to achieve this objective. e entire executive and I have a fierce determination to deliver on this vision.