FBC adapts to market dynamics
Zimbabwe Stock Exchange (ZSE) listed banking group, FBC Holdings, is directing significant investment into digital transformation and innovation, in response to rapidly shifting market dynamics and evolving customer expectations.
In a statement of the company’s half-year results for the period ending June 30, 2024, FBC said it had ramped up investments in technology-related solutions to enhance operational efficiency and customer service delivery.
Chairman, Herbert Nkala, emphasised the importance of adapting to new technologies to maintain market competitiveness and shareholder value.
“Our markets are rapidly transforming, and customer expectations are evolving just as quickly,” Mr Nkala explained.
“This is why we are committed to adapting our operations and investing in cutting-edge technologies to meet these expectations and deliver value to our shareholders.”
The integration of emerging technologies like cloud computing and artificial intelligence (AI), he said, had become a critical component of the group’s strategic focus.
Mr Nkala highlighted the pressing need for organisations to adopt these technologies to streamline operations and deliver a seamless customer experience.
At the same time, the growing threat of cyberattacks has necessitated the implementation of robust risk management systems.
FBC Holdings has responded by investing in comprehensive cybersecurity measures, aimed at safeguarding its expanding technology environment.
“We are committed to adopting relevant technologies to improve customer service and operational efficiency.
“However, we are also very much aware of the increasing risks of cyber threats,” Mr Nkala explained.
“That is why we are focusing on building stronger risk management processes to protect our business and our customers.”
FBC Holdings’ banking cluster continues to play a pivotal role in the group’s broader transformation efforts.
Despite the liquidity challenges facing Zimbabwe’s financial sector, the group remains focused on liquidity mobilisation to support balance sheet growth and meet customers’ funding needs.
The acquisition of Standard Chartered Bank Zimbabwe, finalised in May 2024, has further strengthened FBC’s presence in the banking sector.
The newly acquired entity has been renamed FBC Crown Bank Limited, marking a significant milestone for the group’s expansion.
“We believe the acquisition of Standard Chartered Bank Zimbabwe will generate substantial value for our shareholders,” said the chairman.
“The integration process has been seamless, and we are confident in the potential growth that this brings to the group.”
With this acquisition, FBC Crown Bank is set to provide greater market segmentation and enhance the group’s ability to serve a broader range of clients.
Mr Nkala emphasised that growth and innovation will be central to the bank’s future strategy, focusing on information technology investments to ensure a seamless customer experience.
FBC Holdings is also positioning itself as a major player in the insurance sector, which is undergoing significant changes due to technological advancements and shifting stakeholder expectations.
The group’s insurance subsidiaries, which include operations in Botswana, have shown resilience despite the challenging economic environment.
As the group chairman pointed out, the focus on micro-insurance and diaspora insurance products aligns with FBC’s broader strategy of promoting financial inclusion and expanding market reach.
“The insurance sector is changing rapidly, and we are committed to innovating to meet the needs of our clients,” he stated.
“Micro-insurance and diaspora insurance products will play a key role in our future growth, helping us reach underserved markets and driving financial inclusion.”
FBC Holdings’ diversified business model also extends into the real estate sector, which has been a steady source of income for the group.
While commercial office space in Zimbabwe’s Central Business District (CBD) has seen declining demand, FBC is focusing on high-and medium-density housing projects to meet the strong demand for residential properties.
The group has a robust project pipeline across several cities, including Zvishavane, Marondera, Hwange, Masvingo, and Harare, to tap into this growing market.
In a rapidly evolving economic landscape, FBC Holdings’ commitment to innovation, digital transformation, and strategic expansion is positioning the group to deliver sustained value to its shareholders.
“We remain focused on adapting to market trends and leveraging technology to stay ahead,” Mr Nkala concluded.-herald
