Mogale City account extends Standard Bank Group's share of municipal banking
Standard Bank Group has won the contract to bank yet another of South Africa's municipalities. It is Mogale City, which is one of the largest in Gauteng province.
Bongi Kunene, Head of Public Sector Banking at Standard Bank Group (SBG), says Mogale City is an important acquisition because it significantly boosts Standard Bank's position in the public sector market, especially in Gauteng province. She says that Standard Bank Group has a strong platform to grow to its desired target share of the market for banking services to municipalities.
Kunene says Standard Bank Group is optimistic about landing several of the more than 20 public sector contracts in South Africa for which it has put in bids.
"Standard Bank has demonstrated its commitment todeepening its relationships in the public sector by expanding its unit of people who understand the public sector environment. Municipalities are runaccording to regulations and financial rules which have to be intimately understood in order to provide effective banking services to them."
"Every new business relationship with the public sector is important to us because we are building partnerships with government institutions so that we become more than just a banker to them. We hope to play an important part in helping them fulfil their difficult mandate of delivering services to their communities.
"One of the greatest values we bring to Mogale City is that we will be able to create operational efficiencies and cost savings in the way the municipality manages its finances and spends its funds on banking. We are able to do this because we will deploy appropriate technologies and products that enhance our clients' ability to collect revenues. They also benefit from our client relationship management which is unmatched in the market."
Kunene says what differentiated Standard Bank Group's bid from others was that it offered better value for money.
"As much of the tender evaluation is based on price, the final outcome is not so much about how cheaply a bank offers its services. We believe we got the account because we offered the best value for money. The city would have considered which among the bidding banks understood its business better," she says.
Mogale City Municipal Manager Dan Mashitisho, says: "We welcome Standard Bank as our new banking partner and we are excited about some of the innovative solutions that they are bringing on board. For us it is about the benefits to us and the residents of Mogale City that Standard Bank brings. We look forward to the great working relationship that the people at Standard Bank have already shown to continue in the long-term."
While the revenue potential from local municipalities for Standard Bank Group is significant, the group's intention is also to take banking to communities that fall under the municipalities it banks.
Standard Bank Group is currently finalising the realignment of Mogale City's systems with its own.
Kunene says for residents of the city this means that they will be able to pay their municipal bills and traffic fines through Standard Bank Group outlets much quicker and easier, without having to queue at the municipal offices. Standard Bank Group's extensive footprint and large number of outlets would make this possible.
"Our aim is to build sustainable relationships with our clients, which is why we also invest in the development of local infrastructure and get involved in a number of social investment projects."
standardbank.com
This article was originally posted on Africa Banking Network
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