MASERU
On the 11th of April 2024, First National Bank (FNB) held a press conference at the Lehakoe Recreational Centre to officially introduce a new feature of the bank which is the card localization. The intimate gathering was intended to give details pertaining to this new product and the changes that would come into effect thereof.
Masakoane Hanyane who is the head of Marketing & Communications was the Master of Ceremonies who rowed the boat seamlessly. She introduced the speakers on the panel who each thoroughly explained the concept of card localization. First to speak was Kamoho Mocheba who is the Chief Financial Officer at the bank. He initiated his talk by highlighting his two objectives, one being that at the end of his presentation he expected that Basotho would fully understand what Card Localization was and secondly, they should rest assured that their cards would still be fully functional even after the changes were implemented.
He briefly described CL as keeping local payment serviceswithin the country. He said that there were ways in which payments were made i.e. POS machines, withdrawing money from Automated Teller Machines (ATM) and the common denominator in these processes is a card. He further mentioned that CL was established because FNB wanted to contribute to the country’s economy as well as assist in the country’s plan for the exchange of money. The end goal is to encourage the collaboration of all the various paymentservices within the country, hence the formulation of Card Localization which is meant to support this venture.
The second member of the panel was Nthabeleng Khoali, she joined the conversation in an eloquent and articulate manner. Her focus was on individual card holders and ATMs, she added that CL was brought into effect on the 18th of February 2024. She indicated that this change does not bring about any additional charges to the cards that individuals still hold and that the cards will still transact with no hassle.
Nthabeleng Khoali gave a summary of how these changes have altered bank charges. When a Lesotho national holding an FNB Lesotho card visits SA, the norm was that they were charged in the same manner as when they were within Lesotho borders. That has been brought to a halt, the charges for SA transactions have been increased. She encouraged individuals to check the FNB Lesotho pricing guide which will have the figures for withdrawal charges. Furthermore, charges for countries within the Common Monetary Area (CMA) will increase, these countries are SA, Namibia and Eswatini. Charges for countries outside the CMA will remain the same.
Charges for card purchases will remain the same whether within CMA or abroad. She gave clarity to a mix up that occurred a few months ago whereby card holders were being charged a 20% fee on purchases but that was rectified, and individuals were reimbursed. Furthermore, online betting site payments have been refrained due to the laws that guide them. Regarding ATMs, she mentioned that most people especially those who lived and worked in SA would be encouraged to use FNB Lesotho ATMs because they would incur less charges. Additionally, she raised awareness and said that individuals should be fully aware of what their bank says regarding charges related to such transactions, for instance, when one withdraws M500 they will receive that exact amount but be charged more than they had anticipated. Her urge was that this matter should be addressed with the branch that allocated the card. Khoali stated that as the bank, they have worked tirelessly to ensure that these changes do not disrupt the way cards are operating and pleaded that if anyone encounters any challenges then they should visit the nearest branch or call their customer care line.
Third on the panel was Motšeare Tšosane who represented businesses. He was very practical and clear in his talk where he began by reinforcing that CL was beneficial to everyone. He noted that the National Strategic Development Plan speaks about issues of technology of which the exchange of money relates to, this essentially means skills and jobs will be for the benefit of Basotho. His focus was on speed points/swiping machines, Tšosane shed light on the fact that the transfer of money from these machines did not take place within the country and as he gracefully put it, “the machines did not speak Sesotho”. With this statement, he simply meant that when a card holder made a payment, the machine would convert it to Rands and not Maloti even though the ratio of the two currencies is 1:1.
With CL, the transfer of money has been brought home through the National Payment Switch (NPS) of the Central Bank of Lesotho thus money circulates within the realms of the country. Normally the money would follow a chain where it had to be directed to SA, converted into Maloti then sent back to Lesotho. To the business owners he guaranteed that the machines will function as per usual with no changes, the only difference will be international charges. He further mentioned that an economy that grows is one where money circulates internally, likewise when money circulates within the country, it gives us an opportunity to grow the country. An example he gave was that when we purchase from vendors and swipes, the money is deducted from accounts, and we believe we have completed the payment. What we are not aware of is that the money will only reflect on the vendor’s side 2 days later, which is rather a huge inconvenience. Additionally, they can offer businesses more easily because they are able to monitor their flow of money.
Lintle Tšita challenged the panel by asking how individuals will be able to confirm that Cl is effective. She was given a two faceted response which was that on the bank’s side, the charges incurred will be reduced because there is no longer a middleman. On the business’s side, they will get the pleasure of the funds reflecting rapidly as opposed to having to wait for 2 days. Another question from the floor was why it is that CL took this long to be administered of which Mr. Mocheba responded that such changes are influenced by the regulator and that they had to be in par with other banks to work coherently. Mr. Tšosane added that there ought to be a bridge when money is exchanged, hence they needed to have the way lead in the form of the NPS which is able to link banks. The proceedings were closed off by Mr. Mocheba who gave a vote of thanks and ascertained the public that FNB is there to assist as it is an innovative bank.
