Annual Report 2007

Other Banking Services
Banco ProCredit was very successful in expanding
its deposit base in 2007. The total deposit
portfolio grew by 96% from USD 8 million in 2006
to USD 15.8 million. The number of deposits
grew by more than 13% to 73,000. Term deposit
accounts made up 55% of the total volume of deposits,
current accounts were 43%, and savings
accounts were only 2%.
This very strong growth resulted from a repositioning
of Banco ProCredit as a fully-fledged
bank with a focus on low and middle-income
customers. This repositioning was supported by
our name change and the introduction of debit
cards, international money transfers and services
offered in the four major currencies in the local
economy, namely MZM, ZAR, USD and EUR.
The bank began issuing debit cards in March
2007. As of year-end, it had 9,000 active cardholders
and operated 12 ATMs distributed
throughout the branch network. Apart from making
cash withdrawals, clients can use their debit
cards to check their balances and pay for goods
and services from merchants with POS terminals.
In addition, the bank obtained a licence to issue
VISA cards, and this service is expected to be
made available to clients in 2008.
In October 2007, the bank started to offer international
money transfer facilities via SWIFT. The
Domestic Money Transfers
Volume (in USD ’000)
1,500
1,350
1,200
1,050
900
750
600
450
300
150
0
Jul– Jan– Jul– Jan– Jul–
Dec Jun Dec Jun Dec
05 06 07
Incoming Outgoing Number
Number
1,000
900
800
700
600
500
400
300
200
100
0
International Money Transfers*
Volume (in USD million)
6
5
4
3
2
1
0
Number (in ’000)
Jan– Jul– Jan– Jul– Jan– Jul– Jan– Jul–
Jun Dec Jun Dec Jun Dec Jun Dec
04 05 06 07
Incoming Outgoing Number
M a n a g e m e n t B u s i n e s s R e v i e w 21
service was introduced with competitive pricing
and an emphasis on rapid processing. The bank
also has its own international payment system,
ProPay, which clients can use to transfer money
to ProCredit institutions in Eastern Europe at very
competitive prices. The bank plans to extend this
service to include the African and Latin American
ProCredit banks.
The bank places strong emphasis on encouraging
clients to save for the future as a central component
of its developmental approach. Savings accounts
are not widely used in Mozambique, and
most ordinary people still save outside of the formal
financial system. In 2007, Banco ProCredit
organised campaigns and events to explain the
benefits of savings to the public. During the coming
year we will continue to expand our range of
retail banking services and will strive to make our
products even more attractive.
* This graph includes both incoming and outgoing international
transfers up until the end of 2006; until then, both had been provided
via Western Union.
12
10
8
6
4
2
0