Wednesday, October 20, 2021

Retrenchment benefit, a first in the market from Stanbic Bank

Stanbic Bank Botswana launched a new current account dubbed ‘Achiever Banking’ inside which it embedded a retrenchment insurance benefit being the first of its kind in the local market.

The new account was launched last week Thursday in a manner that sought to personalise the meaning of achievement. The account was said to have been spurred from the realisation that the notion of achievement is increasingly shifting to reflect own personal meaningfulness. The Bank, in response to the evolved needs of personal banking customers, created the account which it expects to accommodate varied livelihoods. It was described as a solution that took acute cognisance of multifaceted lifestyles, particularly of the youth group. The benefits of the account in addition to the retrenchment insurance cover include free ATM withdrawals on the bank’s machines, free digital bank transfers through internet, cellphone banking and Smart App.

The three months retrenchment cover is targeted at customers earning an income between P3000 and P14, 999 every month. The cover is embedded into the account and in the event that a customer loses their job they will be given 75 percent of their monthly income as the retrenchment cover. For customers earning the upper limit of the income range being P14, 999 and above, the retrenchment cover will however be capped at P10 000, meaning the specified percentage of the monthly salary will not be applied. This in other words means that the cover goes up to P10 000.  Explaining what informed the cover amount capped at P10 000, Head of Personal Markets, Omphemetse Dube, said that the cover is simply an extension of gratitude to the customer and does not represent the full benefit that a customer would be entitled to from their employer. “It’s not necessarily that we’re taking over the responsibility of the employer,” she said, adding that the cover benefit is to augment what the customer will receive from their employer.

The bundling together of various benefits into a single account was described by Wabo Moswate, the Head of Products, to have been a response to the banking needs that the bank uncovered. These include among others the need by customers to save, to manage their money, to protect themselves as well as their families from unforeseen job losses and to gain access to credit.

It appears that the Achiever Banking account plays into the narrative by the World Economic Forum (WEF) of anticipated disruptive changes within the employment landscape in response to what is termed the fourth industrial revolution. With the revolution will come changes in routine work, labor substitution by robots, job displacements to mention but a few. These changes will in part introduce flexible working arrangements which allow for multiple sources of income as opposed to the single payment that is typically paid at the end of the month. This reflects the varied lifestyles that today’s life is morphing into from which it seems the Achiever Banking current account is responding to. “Achiever Banking is specifically designed to suit the needs and aspirations of individuals who are risk takers, game changers and juggling more than one thing at a time in order to achieve more,” cited the bank.

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