In their dash to eschew similar slumps in their fortunes that followed mass interest-loan defaulting in recent times, Botswana banks are consequently according non-interest alternatives, like e-banking technology, much attention to the deprivation of workers’ welfare, a banking body in the country has cautioned.
The Botswana Bank Employees Union (BOBEU) said, Tuesday that the proliferation of tech in financial institutions is benefiting both the employers and the end-users, but leaving a vacuum in staff’s welfare, whose caustic result is retrenchment.
The Union leaders advised the banking professionals who had attended the meeting it had convened, to adopt technology in fully-fledged terms of also training the existing employees to handle the tech and thus not suffer the plague of ending up jobless.
Gains Banks are making
Botswana, whose bulk of its economy has traditionally depended on mining its treasure trove of diamond ore, gained yet another budget surplus this year, with the customs returns overtaking gains in the mining sector for the first time ever.
Banks, likewise, are also experiencing the transition of culture shock of trying a new benefactor, by going for non-interest alternatives like technology, which stems human breach of promise and reduces human resource expenditure.
Financial institutions in the South African nation are wary of wheedling back defaulters of loans, which are often the mainstay of global banks courtesy of interest gains, after learning the bitter lesson of the 2008 economic meltdown that saw many borrowers fail to meet their credit obligations.
The emergence of non-interest economic activities for financial institutions is now upshot especially going by the fact that e-banking and mobile transactions are the vogue in former, over-the-counter dispensations.
Indeed, the First National Bank of Botswana has ranked as a leading banker by having the greatest number of subscribers who transact via cell phones in the SADDAC economical zone at the tip of Africa. With a whopping 65% share of the market, the country shoots ahead of Namibia (47%), Zambia (47%) and Swaziland (11%).
The quadruple of countries accumulate a P122m transactional base in a given month, accounting for a million and over two hundred thousand transactions from the handsets, over the same period.
Because of ease, what the region calls Cellphone Banking has taken root in other nations to the east, west and north of Africa, with the reason being the low cost, flexibility and going defunct of the traditional telephone offering in the continent.