Mishma Chakanyuka, Staff Writer 
ZB FINANCIAL Holdings Group (ZBFH) recently launched a new customer service centre in Gweru as it seeks to transform its business operations, amid its bid to acquire StanChart. Our Staff Writer Mishma Chakanyuka (MC) sat down with ZBFH Group chief executive Shepherd Fungura (SF) to discuss these developments and the group’s future plans. Below are excerpts from the interview:
MC: We understand ZBFH is bidding to acquire Stanchart, how far have you gone with this move?
SF: We made a bid for the Stanchart business. How that opportunity came up is we were looking at increasing our shareholding in Mashonaland Holdings, Standard Chartered was also invested in Mashonaland Holdings, a property company. So, as we wanted to invest more in Mashonaland Holdings, they came to say Stanchart will be exiting, if you want there is also an opportunity for you to also invest in Stanchart. So, we made a bid like everybody else and we are still waiting for the outcome.
Shepherd Tapiwanashe Fungura
MC: Does the institution still have plans to merge ZB bank with ZB building society?
SF: We are still processing the plan. We have different approaches that we can take, we can merge the businesses by amalgamation, or by surrendering one of the licences and operating under one licence. So, we are considering which of the two options works. At the moment, we have put together a paper which was sent to our shareholders so that they can consider which way we can bring the business together.
We do think when we do that there is value in having one operation because the activities of the building society and that of the bank are similar. From an operational point of view, we have already amalgamated our systems and we are now using one. Customers are now on the same system though we can identify they are customers for the building society and also customers for the bank onward as we continue to operate business.
Do we discriminate between them? Not necessarily. In terms of employees, they have also come together, operationally, but we know these are employees from the building society and these are employees from the bank as we do the amalgamation. So, we are waiting for the proposal to be approved and then we can go on to finalise it.
MC: How far has the CBZ merger deal gone so far?
SF: The CBZ merger was just a proposition and we are still waiting for CBZ to give us more information on their intention because they are the ones that approached us to say they want to invest more in ZB.
MC: How does the institution expect the recent interest rate adjustment to affect its lending business?
SF: I think interest rates were adjusted through the reserve bank. We have been operating with those interest rates because we are a complying business, we do not run a law-breaking business. So, what we have gotten is feedback from customers that the interest rates were too high for them and we have had to apply for some of our clients who are in the productive sector whose interest rates will be re-reviewed downwards and that has been a success.
That has also caused our customers to continue to service their loans that they have with us and facilities that we have extended to them. We have looked at our book in terms of strains that customers suffer when interest rates go high and we usually check that through a non-performing loan rate and it has remained below one percent. I’m sure you know that the regulatory limit of non-performing loans is five percent, so we are operating at less than one percent, which means that our loan holders have been able to service their loans under the circumstances.
But we do listen to their request for us to get the regulator to consider their interest rates requests and that has been successful in some of the applications we have made.
MC: How has the funeral assurance unit been performing so far?
SF: The life company is performing well. I think the challenge that we have had was we needed to make sure that we invested in a manner that maintains value, because of the previous challenges we have had in 2007,08 and 09 where there was loss of value, especially for pension business and life insurance.
The key challenge that this business faces is the investment side to it, but the funeral unit has been working well because we have been paying claims as we must and we have been paying claims in terms of us providing the benefits as at when they arise. We have done some work before; we are looking at the moment doing small businesses with different city councils like Gweru. We also have interest in other areas like Plumtree and Beitbridge in terms of housing development.
In terms of this type of development we also have partnerships that support that kind of development like those from Afreximbank and Shield Africa that also support these kinds of initiatives. So, going forward, I think this is one area we would want to continue playing part in to improve the housing initiatives.
MC: How far has the bank gone with its digitisation project?
SF: In terms of the digital transformation, we are on a journey which we started last year. Thus far, we have been able to develop what we call digital assets and these are digital apps, US$, WhatsApp, E-wallets and also internet banking. We have developed these digital assets as a way of creating convenience for our customers that they are able to do business with us in the comfort of offices, homes.
We have been able to deliver these and we still continue to improve these so that our customers can have convenience. The impact being business on our part, we become more efficient in what we deliver to our customers, we become more effective in the manner of doing business. As you know technology and digital are platforms that process the business a bit faster.
MC: Can you kindly share with us the company outlook?
SF: In terms of the business, we do see that our business is going to keep on growing. What we have agreed as a business is that though our environment of operation, economically, politically, socially, legally and technologically continues to pose some challenges to business, I think we are now used to it enough for us to say this is what’s normal.
What we have done is we have put in a strategy where we want to continue to grow the business under the circumstances. We have enough frameworks for managing risks that we meet along the way. We have enough frameworks and policies that will be able to make sure that we achieve the growth that we intend. So, the outlook is that ZBFH is going to continue to grow its business despite the challenges that we are facing in the environment in which we are operating.
