By Douglas O. Majwala
On 31st October, 2012, Equity Bank Tz Ltd officially launched its business operations in Tanzania as a bonafide commercial bank, bringing to Tanzanian market niche; a vast experience of a modern day competitive business world. Boasting in transacting in micro-finance aspect of the economy whilst also remaining a champion in macro-finance, scooping several awards in Kenya, Equity Bank has entered Tanzanian market in a transfigurational style.
Within 51 years of sovereignty, Tanzania is for the first time tasting a unique recipe of banking services offered by Equity Bank Tz Ltd where time management and role-model customer care services offered by well trained bank brigade can not be found anywhere else except at Equity Bank. SMART theory is well practiced at Equity Bank with professionalism, equity, tact, diplomacy, excellence, integrity, speed and passion for differences in opinion and diversity which all are keys to managing change and growth.
The first trait that one experiences upon touching this bank is that all customers are equally valued regardless of their status; secondly, unique service delivery speed scares off the old and bitter tradition of queuing. Its staff resemble the service men in operation as they criss-cross the floor as if they are in emergency thus the monster of queuing is addressed by proper time management and the bank’s business model based upon the principles of accessibility, affordability and convenience.
For the first time in history of this country, it takes less than half an hour to complete the whole loop of opening an account with Equity Bank with zero balance contrary to other stakeholders in this industry where one may take a minimum of a week or so to have an account opened for him/her after going through serious red tape at different levels of governance with enticements for corruption, a situation which the poverty bracket trying to access bank services by opening an account would not afford. By this ambitious business strategy, Equity Bank tells African bureaucrats that banking services should now be made a human necessity.
Banking with Equity Bank, one will never ever smell a bribe in exchange for bank services thus corruption which is a mainstay of service delivery in this land, is adequately denounced and condemned at Equity Bank. Customers are the reason why Equity Bank exists and no customer will notice sneering bank staff at any particular time of difficulty instead cheering and smiling facial language of the customer relations is for the first time in golden jubilee found in Tanzania through Equity Bank workforce.
A wind of change in banking industry across Africa has brought revolution in the sector through Equity Bank whose key message is; championing the social economic prosperity of the people of Africa by being a limousine chauffeuring more than 7 million customers in only five African countries making up Equity Group namely: Kenya, Tanzania, Uganda, Rwanda and South Sudan all headquartered in Nairobi. This makes the bank become business ambassadorial hub connecting beyond East African market with Diaspora account services.
In Tanzanian market six account services are operated as: call/fixed deposit account, current account, equity ordinary account, jijenge savings account, social institutions account and super junior account. The bank also offers loans in seven business portfolios as: agriculture loans, asset finance loans, bills discounting loans, consumer loans, micro business loans, corporate loans and SME loans in trying to reform the livelihoods of poverty stricken African citizenry.
Tanzania’s Deputy Minister of Finance Hon. Janet Mbene signs the visitors’ book after officially opening the Equity Bank Tanzania subsidiary. Looking on is Equity Bank Board Director for Tanzania Prof. Delphin Rwegasira and Equity Bank Group CEO Dr. James Mwangi, CBS. Equity has branches in Dar es Salaam, Arusha and Mwanza. Photo by courtesy of Equity Bank Tanzania Ltd.
If all other service delivery entities would have worn the shoes of Equity Bank in delivering customer services; in deed this country would have been far and it would have positively reflected on the state determination to offer quality services to her citizenry through the hands of a well groomed workforce which need put forward a sense of responsibility and accountability before anything else and prove the truth that no customer satisfaction work done is zero.
The most daunting thing is that with the so-called customer service charter adopted by majority service delivery institutions in the country, still the poor quality of services rendered by poor quality of workforce erodes the philosophy of our society in trying to fulfill election manifesto whose main focus is equitable sharing of the national cake. This also reflects negatively on the abilities of our institutions that produce this type of human resources for the service of this country let alone kickbacks solicited during service delivery. This call for reforms in managing staff performance whereby the main drive should be to manage the work itself first than to manage salary and human resources next. The work as an element of performance management should be managed/designed in such a way that it motivates the workforce doing it. Big pay and little responsibility are circumstances seldom found together, Napoleon Hill.
The above is true of Equity Group CEO Dr. James Mwangi who was named by Ernst & Young a world entrepreneur of the year 2012 pending other two awards by CNBC Africa which crowned him as business leader of the year; I herein quote his remarks on receiving the CNBC Africa award, I am honored to receive this award. I look forward to working more with other likeminded thought leaders who serve to develop strategic direction that will lead to actionable solutions to mitigate Africa’s poverty levels and put us on a growth trajectory to be in the same league with the developed world. This award represents all Africans who are working hard to improve their livelihoods and those of their communities. It is the same CEO whose dedication to work flows down the organogram to the group branches outside Kenya where staffs share and promote common values and objectives in transforming lives in Africa which have been stuck for the past 50 years of independence, this disapproves Jim Rohn’s doctrine that Poor people have big TVs, Rich people have big libraries.
Strong team spirit at Equity Bank the case for Tanzania under the auspices of a youthful, innovative and gifted MD Mr. Samuel Makome confirms school of thought by Robert Schuller that problems are not the stop signs, they are the guidelines; for he is leading the bank under cut throat market circumstance ever experienced in Tanzania with sectoral invasion from the telecommunication firms leading to scramble for marketability thus posing a serious challenge in terms of transactions taking the shape of a pyramid where deposits are at the top while withdrawals are at the bottom of the pyramid causing panic to other players in the sector. State-of-the art technology through ICT has brought tremendous revolution in the sector that compels banks to adopt the same for growth purpose. ICT has brought with it e-banking which like mobile telecommunication; connects to partners who provide the same services and or other services which are not bank related like utilities.
The big number of commercial and investment banks including other financial institutions however has not brought in the much needed competition to cut borrowing rates. This is ostensibly the cornerstone for Equity Bank to choose to operate without borders [cosmopolitan bank services] by taking lead in directing other banks’ foci to serving mankind across African market driven by the urge to address African socio-economic exigencies. Equity Bank which is not more than two decades old has proved that if there is a change which makes at least one individual better off without making any one else worse off, that change is efficient (Debreu, 1959; Varian, 1992; Schenk, 2004). Accenture holds that despite uncertainty stemming from the recent global economic slowdown, a number of the continent’s economies are set to deliver GDP growth in excess of 5% compounded annually between now and 2014.
The number of commercial banks operating in the country increased to 45 by end of last October from 42 registered in the same period in the previous year according to Central Bank. Deposits mobilization continued to demonstrate positive trend, increasing from 9.84 trn/= in Oct 2011 to 12.11 trn/= at the end of Oct 2011. It is not clear whether this is inclusive of deposits made to financial institutions and mobile telecommunication firms operating bank services as well. With such number of banks in the market still poverty remains a monster in the society, the reason being that vast majority of banks are not pro-poor. Equity Bank is determined to penetrate the local market with ambitious pro-poor business policy that is broadly geared towards addressing African poverty. According to Central Bank, the short term lending rates of banks ranged between 4% and 27%; with those extending credit to corporate customers charging lower rates than the ones extending credit to salary earners and agriculture related business. On the other hand, interest rate for one year time deposits ranged between 2% and 10.8%.
It is estimated that about 55% of adults with tertiary education access bank services in Africa. In Malawi 81% of people do not have bank account out of 16,323,044 demographics profile as of July 2012. In the US about 6133 commercial banks exist, down from 6177 last quarter with demographics profile of 314,750,000 the world third largest population. If all financial institutions and banks pools up their efforts and take the stance of Equity Bank, African poverty can be made a history as it is in the industrialized world.
Every day I get up and look through the Forbes list of the richest people in America. If I’m not there, I go to work. Vinnie Rege.
majwalaoriko@yahoo.co.uk