Zimbabwe`s Kingdom Bank has launched the first Globus-based debit card in Africa. The move follows the completion of the first stage of a US$1,5 million (R12 million) deal with JSE-listed Global Technology. "We purchased our entire core banking software from Global Technology, including treasury and current accounts modules, but the debit card implementation is our showcase," says Eugene Mlambo, MD of Kingdom Bank, the commercial banking division of Zimbabwe Stock Exchange- listed Kingdom Financial Holdings.
"The debit card system was configured to run in conjunction with the point-of-sale system linked to the bank. This made it possible for us to extend the offering throughout the country, the first bank to do so." Mlambo adds that a lengthy spell of high interests rates in Zimbabwe has encouraged savings. "We are now experiencing a drop in rates and expect this to boost spending, so the timing could not have been better for us to launch the debit card," he says.
Linking the debit card to an ordinary savings account has also boosted take-up of the product, despite relatively little advertising. "For many Zimbabweans, the barriers of entry to full banking are very high, and the easiest product to offer to the market is a savings account," Mlambo says. Kingdom Financial Holdings, then known as Kingdom Securities, started life six years ago as a discount house. Kingdom then added an asset management company, and launched its merchant bank in 1998. The expansion of the group was consolidated in a merger with the oldest discount house in the country, the Discount Company of Zimbabwe. The diversified group then listed on the Zimbabwe Stock Exchange in June 1999 as Kingdom Financial Holdings.
At the end of 1999, retail group Meikles Africa took a 25% share in Kingdom Financial Holdings. Meikles` primary demand was for in-store banking, and Globus`s ability to comply with this requirement provided the initial driver to choose the Global Technology banking solution, says Mlambo. "Additionally, we saw the advantages of local support which Global Technology could provide, as well as an ability to provide the system flexibility required by our environment," he says.
The full range of products which Kingdom Bank acquired includes: the core Globus banking system, including savings accounts, short term loans, fixed term deposits, current accounts, standing orders, funds transfer, bill payments, treasury, trade finance and switching software for ATMs, point of sale and debit cards.
Ray Leonard, CEO of Global Technology, comments: "Kingdom Bank has stolen a march on its competitors by being the first to allow customers to go into any participating store in Zimbabwe and pay for their goods without having to carry cash. This places the Zimbabwean bank firmly among the world leaders in this technology."
Global Technology is the leading supplier of software solutions to the banking, insurance and financial services sectors in Africa and Australia.
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