‘Broader interest earning savings products needed’

BUUMBA CHIMBULU writes@SunZambianFINANCIAL service providers should expand the range of attractive interest earning savings products which will ensure that customers reap huge rewards from their savings, Bank of Zambia (BoZ) Governor, Christopher Mvunga, has said.Mr Mvunga said money should be seen to be growing with reasonable returns and not only be saved.The Governor emphasised that attractive interest rates on savings would assist in enhancing the saving culture of the citizens in Zambia.He said this last week in a speech read on his behalf by BoZ Deputy Governor for Operations, Rekha Mhango, at the 2020 World Savings Day and 2020 Digital Financial Literacy Awards.The 2020 world savings day was celebrated under the theme “When You Save A Bit, Big Things Happen.”“This is consistent with the expectation of the theme, that when people save on a bank account, investment scheme or insurance-life policy, then they have the possibility of reaping big rewards,” Mr Mvunga said.Speaking at the same event, Bankers Association of Zambia (BAZ) Chairman, Herman Kasekende, observed the need for financial service providers to enhance investment in cyber security which was on rampant as the use of digital platforms increased during the Covid-19 period.Mr Kasekende explained that as more people used the digital platform during the Covid-19 period, the more cyber security was witnessed.“The adoption of the digital platform called for more investment in cyber security. More people are now using the digital platform, especially following the onset of the Covid-19 period,” he said.Mr Kasekende acknowledged that the digital payment channels and shared banking infrastructure was making it possible to remotely on-board customers and allow them to access financial services at a touch of a button anywhere, and anytime.“In Zambia today, we are witnessing an exponential growth in mobile and online payment platforms, which is a testimony to the shifting paradigm,” he said.Mr Kasekende said technology has narrowed the barriers of distance, changing the way Business was conducted.He noted that mobile network and internet connectivity had played a vital role in seamless financial transactions across the country and beyond borders, allowing the free flow of funds and freedom to transact in real time. The Sun