THE Bank of Zambia (BoZ) is engaging the banking sector on the need to reduce the cost being charged on banking services to attract more people into being part of the banked, deputy governor – operations, Bwalya Ngandu has said.
Dr. Ngandu said there is need for banks to understand that when they charge less on banking products they will attract volumes which will then translate into increased income.
Speaking in an interview with the Daily Nation, Dr. Ngandu said the central bank had received numerous complaints on the costs attached to banking in Zambia, adding that this has become a source of concern.
“We are having discussions with the banks concerning the pricing of various products because people are complaining that fees are too high and that is an issue on which we are engaging the banking sector to ensure that the cost of services and products are within range as this will encourage more people to use the banking service,” Dr. Ng’andu said.
He noted that receiving complaints from the business community was a sign that there was need for engagement between the central bank and the banks operating in the country.
Dr. Ng’andu said there is more that needs to be done by the banking sector to ensure that more players are attracted into banking.
By the year 2015 records were showing that, 86 percent of Zambians do not have bank accounts, and that these individuals are aged above 10 years. This largely explains the rhetoric that a majority of Zambians are not banked.
Banking in Zambia is just too expensive, every month my bank deducts K120 service changes and K160 Management fees. On top of that I am charged K8 for every ATM withdraw and I earn zero interest from my servings.
I hope BOZ will address these.
Sounds like stanchart!!!!!!!!!!!!!! the creep are dump expensive. The charge even checking for your A/cc balance.
Stanchart of course
Among wild charges you pay stanchart ATM quarterly fees.
At the end of a loan tenure , stanchart tells you to continue paying for additional 12 months
we need a “dangote ” in the banking sector
@see – why so he can pay peanuts!!
Mshotah name the bank,, we will get action only if we name and shame the greedy banks
Maybe u should use UTB bank,,, Under The Bed. Kekeke
FNB
@Mshotah, I am sure you bank knows that you do not know the difference between Saving and serving, that is why they charge you K280 before ATM charges. Yes banks in Zambia are expensive but it is also our duty to find a bank that charges lower. What bank charges that much?
Stanbic back they changed every deposit.
In America basic checking account is free from monthly fees, withdraw fees, even overdraft fees. It’s free as in free.
We have weak compromised regulators, in Europe the Banks will fall over your feet just to have your salary paid into their accounts…Zambian banks are just being lazy and have formed a cartel like the Mobile Network firms
Only in Zambia do you get charged by a bank to make money off your money…you do not need to engage them when they are ripping off customers. I left K100 in one ZANACO basic account in 1997 untouched…checked my account 10 years later and there was nothing and account closed/erased; Bank manager didn’t even bother to reply to my letter. Why should your bank charge you for a basic account with zero benefits?
The business model for banks in Zambia us nothing more than usury. They forget it is OUR money they are using to invest in T-Bills or lending to customers when they like. Profits from these activities should be more than enough to see them through.
The banks are lazy …they don’t even want to invest in new technology with the profits they are making from the poor..its no wonder people opt to stay in the black market of what benefit apart from security your money better of in a vault at home. It works to their advantage more people put money in free basic accounts but they are too greedy!!
We have heard these stories before… The banks will still do want they want to do. The toothless BOZ won’t do anything about it
In Zambia you can walk in a FNB bank with foreign currency and turned away – you will be told that by the cashier at the till that they only accept currency from their Platinum account holders…really laughable…who is the loser there?
Indo loans have so many charges. Nonsense
What I fail to understand is that we have over 15 mainstream retail banks in Zambia so one would expect that competition and market forces would drive pricing down as you cant tell me all the banks have colluded. I dont think it is BoZ role to unduly try to influence pricing down wards. They could however help improve competition in pricing by ensuring pricing transparency and enforcing that all banks publicily display the costs associated with each bank account and service. This would allow customers to make informed choices based on costs. That said, cost will not be the only determinant. Consideration should be given to service quality. Natsave may be cheaper than Stanchart…but you get what you pay for. Often in the long run “cheap” turn out to be expensive!!
Collusion is the factor, our BOZ seem not to have the nither the capacity nor the policy instruments to charge and fine ailing banks as is the case in South Africa. I fail to understand why our directors cannot benchmark and implement policies that are beneficial to the economy as well as its citizens.
Stan chart is the biggest culprit.look at how much they declare as profit….200% and yet they cannot reduce on some of these charges.Zanaco eyabako.lets bank with ours
Zambians need to wake up from their docility and realise that without their money there is no bank!!
Bank is very expensive in Zambia. Just take an example of barclays. If you draw K50000 on the counter they charge you K250 on the savings account. Meanwhile you need to pay farmers who have no bank accounts. Sometimes I trully wonder whether these brains we have function well. These guys should know that Zambia still has rural dwellers who have no banking facilities and need to be supported.
Stanbic has increased loans term.from 5Years to 7year’s, why should we pay more
They’ve all increased or will increase fees because they can’t earn much more from loan interest giving out new loans; salaried customers have already have loans to maximum limits. Only way to grow is to increase fees. Barclays and Stanbic increased fees on 3rd and 7th December…all transactions are now charged including buying airtime and balance enquiries. Watch your fees this month and watch who has the number one spot next year!
Sometime last year I was asked to share my successful business experience while in diaspora with a group of SMEs at workshop where I was the guest speaker here in Livingstone. I said that within SADC region, Zambia is the most difficult place to do business because everything is based on cash transact. The bank of Zambia as the regulatory body, has allowed commercial banks to charge high interest rate on borrowing, far beyond than in any country within our region. Small countries like Swaziland, Lesotho, the interest rates are less than 10% on borrowing yet here we are talking about 30% and over. Which SME business could prove a net profit margin of 30% here in the country? We have well educated people in the financial sector, unfortunately they live in the glass house and detached from…
the reality on the ground. Even Zimbabwe will soon rise up to a better country, while we remained showing off like a peacock our arrogance and a fake pride. Zambia has great opportunity to develop, but corruption and the failure to separate the political side from the administrative in government is a major drawback to our development. The civil service has been politicized, yet they are supposed to be above politics so that they could drive a clean system of government as it was from the beginning after gaining our independence. To blame the banks or twist their arms will never reduce the banking costs. In this country, there are no work ethics in the civil service, because everyone has been told to tow the political line. I have met many committed public servants who are so frustrated…
by the way the government machinery is ran with no accountability.
sounds like we need a regulatory authority since boz ‘s proved to be toothless
Nothing is normal in this unchristian country. Why pretend? I live almost independently, dog eat dog.
On the face of it Zambia is supposed to a very rich country, but our so called ” educated” have let us down. we have the so called Dr. this Dr. that but we still have these exploitative interest rates in the financial sector. It is time we have meaningful instruments to help our economy, business by nature thrive on profits and there is no limit on how much profit they will extract from helpless souls. The BOZ must use there so called Dr this and Dr. that to come up with an agreed range of interest rates given the level of our inflation. Just thinking?