NDAMU SANDU
GetBucks MicroFinance Bank Limited will expand its retail footprint with a bias on short term loans as it moves to preserve value in a hyperinflationary environment.
Terrence Mudangwe, GetBucks CEO, told an annual general meeting of shareholders in Harare on Tuesday the institution has generally been dominant in the micro-lending space and will now also focus on an increased banking presence in order to bring convenience to clients.
“However, the lending aggression will continue albeit with a deliberate bias towards shorter term loans in a bid to preserve value in this hyperinflationary environment,” Mudangwe said.
The bank’s retail expansion thrust is part of a five-pronged strategy GetBucks is pursuing to grow its business.
Growth will also be underpinned by capital preservation, financial inclusion targeting the unbanked, impact lending to the agriculture sector and riding on digitalisation.
Mudangwe said the importance of capital preservation has been “magnified” by the recent indexing of minimum capital to the United States dollar.
“We now have to strike a fine balancing act between value preservation and profitability,” he said.
Mudangwe said a deliberate financial inclusion strategy is targeting the unbanked by offering banking solutions that address their needs.
This, he said, would be underpinned by the lowest banking charges across all platforms.
Mudangwe said the bank will focus on impact lending to the agricultural sector and the mass market.
He said GetBucks will ride on technology to expand its footprint.
“Our model and winning formula have always been targeted at the mass market.
This will not change and we will use technology to ensure banking is made easy in a cost-effective manner in this new banking era,” Mudangwe said.
The fintech firm’s expansion thrust comes as the group has approved a share purchase scheme to reward its employees.
Under the plan approved at the company’s 4th annual general meeting on Tuesday, board chairman Rungano Mbire said the scheme results in an earned benefit arising out of a bonus as qualifying employees may purchase shares up to a value of 50% of their bonus.
“The subscription price for share purchases shall be calculated as the volume weighted average traded share price less than a 10% margin.
The bonus is restricted to 10% of profit after tax and the maximum number of shares that can be procured under this scheme is 100 million,” Mbire said.
He said the purpose of the scheme is to “reward employees” who have contributed to the company and to encourage employees to work towards enhancing the value of the company and its shares for the benefit of the company and its shareholders as a whole.
