Standard Bank Plc. is inspiring local village bank enterprises to utilize its tailor-made Khonde Saving Account product to safeguard their finances.
Community inspired village banks have fast become a mode of saving and securing loans especially among women.
However, trust issues seem to be a major drawback with incidences of purse-keepers plundering group members’ finances inevitably on the increase.
Standard Bank’s Head of Consumer and High Net-Wealth Clients, Charity Mughogho stresses that the account offers village banks transaction convenience while also accessing digital banking services.
”The offer is part and parcel of the bank’s drive towards financial inclusion by ensuring that the unbanked population has access to banking,” Mughogho explained.
The Khonde Savings Account comes with an option of a life insurance pay- out of 200,000 Kwacha in the event of death or permanent disability.
This option is available for all members in village banks with a maximum membership of 20.
The product also follows findings of an official survey by the National Statistical Office (NSO) which describes village banks as the main source of borrowing by households at 41 percent against other sources.
Mughogho has further hinted that the bank’s digital platforms will also ensure that village savings groups and beneficiaries are able to transact digitally by receiving monthly contributions, paying out loans to each other, and sharing accumulated returns of their savings at year end through members’ accounts that will also be opened as part of the partnership.
In order to open the account, village savings groups will need to present a constitution governing its operations, minutes for the meeting where the group agreed to open an account with Standard Bank Plc, valid national identity cards and proof of residence of all signatories.