FINANCIAL EDUCATION CAN BE AN EFFECTIVE TOOL IN HARSH ECONOMY

 Stanbic Bank Zambia says employers need to expose their employees to financial wellness programmes to help them navigate hard times and maintain workplace productivity.

LUSAKA, ZAMBIA – The COVID-19 outbreak has had a telling effect on the economy, particularly in the context of the growing rate of unemployment as the partial lockdown continues to weigh on business.

Hundreds of people have lost their jobs since the pandemic hit Zambia, while others have had their income cut as businesses shutdown due to stifled trade.

As the outbreak persists, financial anxiety among business owners and individuals alike is becoming a common occurrence explained Chilombo Tembo - Head Workplace Banking at Stanbic Bank Zambia.

In the bank’s recent Tili Pamodzi online webinar, Mrs Tembo noted that there was a serious knowledge gap in personal financial management among members of the public that reduced their capacity to navigate the current economic climate.   

“We understand that these are challenging times for both businesses and individuals as many of them have had their revenue drastically reduced if not completely lost. Stanbic has stepped in for many businesses to help ease their financial stress by giving them loan repayment breaks or helping them refinance existing facilities. Our focus now is to extend this service to the individual,” she said.

Zambia’s largest bank says it wants to make personal finance education for its clients one of its top priorities during the outbreak adding that financial wellness programmes had the potential to make participants more financially secure even in challenging times.

“The goal is to equip our customers with the tools they need to take control of their finances and effectively navigate these difficult times,” she said.

“As a responsible lender, we have taken it upon ourselves to offer financial literacy through our Workplace Banking preposition at no cost to our clients and their employees so that they can manage their finances better while also making sure they know the true cost of debt.

What we are seeing is that a lot of people are over-borrowing as they desperately try to survive the harsh economy. Debt can be a source of a lot of stress particularly when one has overextended themselves by borrowing from different institutions.

As revenue streams slow because of the virus, repayments become increasingly difficult. And as Mercer’s study showed, stress among employees eventually affects the business’ bottom-line.

One of the ways we help individuals who have over-borrowed is working with them to refinance or consolidate their debt under a single institution which makes it more manageable thus relieving some of the pressure.”

Mrs Tembo added that it was important for individuals to treat themselves as a business in the way they dealt with their finances as this would make them more accountable in their spending because successful businesses are very deliberate on where their money goes.

“Whether you are on a salary or self-employed, if you treat yourself as a business, you will not waste money on unplanned spending sprees.

To achieve financial stability, one must draw up a financial plan outlining where they are financially and where they want to be after a period. 

You need to take stock of your cashflow and make sure it aligns with your money goals. If you cannot do this by yourself, you can find a mentor to help see you through.

If you plan your finances and use your money prudently, you are less susceptible to sudden financial shocks like the type created by COVID-19.”

We are starting to see economies slowly open, but the future remains uncertain. We do not know when things will return to the way they used to be.

The only certainty we have is that Stanbic Bank Zambia will continue to engage our clients to make sure they have adequate relief from the stress created by the current climate.

The full webinar is available at https://www.facebook.com/1610579789270468/videos/266981311255298/

-Ends-

About Stanbic Bank Zambia

Stanbic Bank Zambia is part of the Standard Bank Group, Africa’s largest bank by assets.

Standard Bank Group reported total assets R2.3 trillion (about USD163 billion) at 31 December 2019, while its market capitalisation was R277 billion (USD20 billion).

The group has direct, on-the-ground representation in 20 African countries and in 5 global financial centres. Standard Bank Group has more than 1 100 branches and 9 000 ATMs in Africa, making it one of the largest banking networks on the continent. It provides global connections backed by deep insights into the countries where it operates.

Stanbic Bank Zambia is the largest bank in Zambia by balance sheet and provides the full spectrum of financial services. Its Corporate and Investment Banking (CIB) division serves a wide range of requirements for banking, finance, trading, investment, risk management and advisory services. Corporate and Investment Banking delivers this comprehensive range of products and services relating to: investment banking; global markets; and global transactional products and services.

Standard Bank’s corporate and investment banking expertise is focused on industry sectors that are most relevant to emerging markets. It has strong offerings in mining and metals; oil, gas and renewables; power and infrastructure; agribusiness; telecommunications and media; and financial institutions.

Stanbic Bank Zambia’s Personal and Business Banking unit (PBB) offers banking and other financial services to individuals and small-to-medium enterprises. PBB serves the increasing need among Africa’s small business and individual customers for banking products that can meet their shifting expectations and growing wealth.

For further information, go to http://www.stanbicbank.co.zm/

Gillian Langmead at Langmead & Baker Ltd;

+260 979 060705;

[email protected]