The concept of metshelo remains a culturally relevant vehicle for savings and investment, according to Stanbic Bank Botswana. The Bank recently launched the Matshelo Savings Account promotion, bringing a solution to market which draws on the traditional platform, but with considerable modern-day enhancements.
Said Wabo Moswate, Head of Products at Stanbic Bank Botswana, “Batswana have a culture of saving as a group to facilitate a variety of things, from buying groceries to savings or investment. However, be it formally registered societies or informal groups, what we have experienced in the market is that most of these savings are not placed in secure banking investment products. Instead, group savers opt to keep the physical cash or place this in the account of a nominated individual, both of which are not ideal.”
According to Moswate, such modes are susceptible to fraud and misplacement of funds, and thus though historically less of a challenge from this perspective, the issue is a key one to consider today. Stanbic Bank’s Matshelo Savings Account aims to combat this risk. It is a secure product that enables these groups of people to save together as an entity and to mitigate security risks, whilst still being rewarded with interest for saving.
The Matshelo Savings Account is a group savings product that is designed for people who wish to save together as an informal group or as part of a registered society. Amongst the key benefits are:
No Management Fee
Free SMS and Email Alerts for up to 5 members of the group
Transacting anytime and anywhere with our Enterprise Online Banking platform, a unique service which revolutionizes the traditional matshelo concept to greater modernity and thus modern relevance
Free Interim Bank Statements
Competitive Interest Rates
Access to other Bank Investment Solutions
Access to the Matshelo Savers Draw
Instant Access to Funds
“We spent a great deal of time working to develop a solution that would not only add unique value, but that would be truly relevant to the needs of this segment in the market. Thus, we offer robust security, as up to 5 members can be setup for both e-mail and SMS alerts. Designated group signatories are able to transact any time and anywhere with our Enterprise Online Banking platform and other members of the group can access this platform to view transactions and statements at their own leisure. This means complete transparency around the financial dealings of the group. Further, there are no monthly maintenance fees, and this results in cost savings worth noting. We have also implemented a quarterly savers’ draw, which motivates members to “stay in” for a longer period, thus creating more wealth and value through interest earnings,” Moswate notes.
Further appeal and support comes in the form of a dedicated relationship manager, access to business advisory services and other Bank investment solutions.
“We are seeing a paradigm shift in that metshelo are no longer just for those in rural communities, or only for the elderly. They are becoming an increasingly popular vehicle adopted by youth. This is why we felt it fit to develop a solution that has been modernised to now offer the ability to save funds, securely, as a group, whilst at once earning competitive rates. We care about the well-being of societies’ members, and about this cherished traditional platform which resonates even more strongly today. Thus, we want to give societies that extra push to help them meet their savings goals and truly level up,” concluded Moswate.