First Capital accelerates digitisation
LIVINGSTONE MARUFU
Listed lender, First Capital Bank, digitised much of its operations and services in the first six months of the year as part of efforts to counter adverse effects of Covid-19, Business Times can report.
First Capital Bank introduced new products such as infinipay, WhatsApp banking, Reverse billing among others in anticipation of the increased use of electronic channels in the current environment.
First Capital Bank managing director Ciaran McSharry said the First Capital Bank will continue to improve its digital transformation due to high uncertainty.
“While the Covid-19 pandemic may have posed an obstacle at first, we chose to view it as an opportunity to accelerate our digital transformation programme by developing key service enhancements that would improve our customer experience. This enabled us to continue to proffer relevant, quality banking solutions to our customers and clients when it mattered the most,” McSharry said.
The digitisation drive will see the lender enhancing existing platforms to give a superior user experience and increased transactional security in addition to a focus on new innovations.
In its financial results for the period under review, First Capital Bank’s profit fell 61% to ZWL$165.9m from ZWL$423.1m due to the subdued business activity caused by Covid-19 effects which shortened operating business hours.
The bank had capital adequacy position of 24.7% compared to regulatory minimum of 12%.
First Capital has exceeded the minimum capital requirement with core capital of US$36m, exceeding the regulatory target of US$30m.
“A capital buffer above the US$30m will be required to cushion against future exchange rate fluctuations given that the composition of capital is mixed between US$ and ZWL,” McSharry said.
Liquidity ratio was 49% compared to regulatory minimum of 30%.
In the period under review, the lender maintained a quality loan book with a loan loss ratio of 0.6%, NPL ratio of 0.14% with market average at 0.3%. Impairment coverage was at 1.8%.
First Capital Bank chief finance officer Taitos Mukuku said the lender has a role to play in national building by funding productive sectors with direct support to the tourism sector.
“We continue to innovate our product offering ensuring that these improvements allow our customers to achieve their extraordinary whilst we strengthen our balance sheet and improve our cost structure,” Mukuku said.
