StanChart’s saving account to harness more savings
STANDARD Chartered Bank (StanChart) is launching a new savings product the Safari Savings Account. <b>Francis Mills-Robertson</b> the head of consumer banking, talked to our reporter.
STANDARD Chartered Bank (StanChart) is launching a new savings product the Safari Savings Account. Francis Mills-Robertson the head of consumer banking, talked to our reporter.
QUESTION: What is the importance of promoting a savings culture ?
ANSWER: It is critical for every developing nation to encourage the development and promotion of a national domestic savings culture. Domestic savings take the form of household or individual savings, business savings and government or public savings. As bankers, our emphasis is on helping increase household or individual savings. By increasing domestic savings, we provide a financial pool for business operators and investors to plough back into further economic development of the nation.
In Uganda, savings as a percentage of Gross Domestic Product (GDP) stand at 11%. Many African countries fall within the 11%-13% range. This makes most African nations heavily dependent on external borrowing to fund development. By increasing domestic savings, we help increase locally-funded investments and development and reduce the external dependency syndrome.
How does Standard Chartered’s Safari Savings Account help increase domestic household savings?
To be able to save, first, one has to have the means. Secondly, one has to have self-control. For many people who have the means, lack of self-control is the greatest barrier to saving.
The Safari Savings Account addresses this issue in two ways. First the account makes it easy for customers to save because it is linked to their salary accounts and the inbound credits are automated through standing orders. This ensures that the savings grow without direct intervention of the customer. Secondly, the product is designed to discourage withdrawals. No cheque books or Automated Teller Machine (ATM) cards are offered on this account and withdrawals are restricted to a minimum. These product features impose the self-control that most of us lack in sticking to our savings goals.
Of course there are also the added bonuses of higher interest rates and outstanding customer service.
Why the name Safari?
Safari is a Swahili word meaning a long journey. We believe life is a long journey and that with proper and forward looking plans, one can gradually ease away the problems and obstacles in life to ensure a comfortable and enjoyable future. The Safari account allows customers save for the journey into the future and the means to enjoy that journey.
How will you make sure competitors do not copy this product?
We believe strongly that imitation is the sincerest form of flattery. We also believe that our international pedigree imposes on us a duty to lead the banking industry in Uganda by keeping pace with industry developments worldwide.
We have led the way with introduction of new and relevant technology, improved products, more robust processes, barrier breaking customer service and world class premises upgrades. In most of these instances, competition has sought to up its game to the new standards we have set. We will continue to set new benchmarks in this industry and hope it encourages competition to follow.
Here, copying us will lead to an increase in domestic savings, which is good for our customers and good for Uganda.
What has been your experience of the retail banking sector in Uganda?
The retail banking sector in has seen tremendous growth and progress over the last three years.
The increased number of new products and services, improvements in the physical and technological infrastructure, increased play in new and economically-important customer segments like the small and medium enterprises sector, increased professionalism in the industry and the strong supervisory control from the central bank all point to growing progress in the sector.
QUESTION: What is the importance of promoting a savings culture ?
ANSWER: It is critical for every developing nation to encourage the development and promotion of a national domestic savings culture. Domestic savings take the form of household or individual savings, business savings and government or public savings. As bankers, our emphasis is on helping increase household or individual savings. By increasing domestic savings, we provide a financial pool for business operators and investors to plough back into further economic development of the nation.
In Uganda, savings as a percentage of Gross Domestic Product (GDP) stand at 11%. Many African countries fall within the 11%-13% range. This makes most African nations heavily dependent on external borrowing to fund development. By increasing domestic savings, we help increase locally-funded investments and development and reduce the external dependency syndrome.
How does Standard Chartered’s Safari Savings Account help increase domestic household savings?
To be able to save, first, one has to have the means. Secondly, one has to have self-control. For many people who have the means, lack of self-control is the greatest barrier to saving.
The Safari Savings Account addresses this issue in two ways. First the account makes it easy for customers to save because it is linked to their salary accounts and the inbound credits are automated through standing orders. This ensures that the savings grow without direct intervention of the customer. Secondly, the product is designed to discourage withdrawals. No cheque books or Automated Teller Machine (ATM) cards are offered on this account and withdrawals are restricted to a minimum. These product features impose the self-control that most of us lack in sticking to our savings goals.
Of course there are also the added bonuses of higher interest rates and outstanding customer service.
Why the name Safari?
Safari is a Swahili word meaning a long journey. We believe life is a long journey and that with proper and forward looking plans, one can gradually ease away the problems and obstacles in life to ensure a comfortable and enjoyable future. The Safari account allows customers save for the journey into the future and the means to enjoy that journey.
How will you make sure competitors do not copy this product?
We believe strongly that imitation is the sincerest form of flattery. We also believe that our international pedigree imposes on us a duty to lead the banking industry in Uganda by keeping pace with industry developments worldwide.
We have led the way with introduction of new and relevant technology, improved products, more robust processes, barrier breaking customer service and world class premises upgrades. In most of these instances, competition has sought to up its game to the new standards we have set. We will continue to set new benchmarks in this industry and hope it encourages competition to follow.
Here, copying us will lead to an increase in domestic savings, which is good for our customers and good for Uganda.
What has been your experience of the retail banking sector in Uganda?
The retail banking sector in has seen tremendous growth and progress over the last three years.
The increased number of new products and services, improvements in the physical and technological infrastructure, increased play in new and economically-important customer segments like the small and medium enterprises sector, increased professionalism in the industry and the strong supervisory control from the central bank all point to growing progress in the sector.