Botswana’s Financial System Sees Rapid Expansion of Banking Services
Gaborone, Botswana - In a significant move towards improving financial inclusion and access to banking services, Botswana’s commercial banks have undergone a restructuring and expansion of their operations, resulting in the opening of six new branches.
Banking Branch Expansion
According to the Bank of Botswana’s Banking Supervision Annual Report 2020, the number of bank branches increased from 155 in 2019 to 161 in 2020. The majority of these new branches are concentrated in the South East District, which includes the capital city, Gaborone, with 66 branches, followed by the Central District with 37.
Enhanced ATM Functions
The expansion also saw an increase in Automated Teller Machines (ATMs), from 542 in 2019 to 564 in 2020. Most of these new ATMs have enhanced functions, including:
- Deposit-taking facilities
- Card-less options for certain transactions
- Cash and re-depositing mobile money transfers/payments
Increased PoS Terminals
The number of point-of-sale (PoS) terminals also saw a significant increase from 16,725 in 2019 to 18,237 in 2020. Only four banks - FNBB, Absa, Stanbic, and Bank Gaborone - own these terminals.
Positive Impact on Financial Inclusion
The expansion of banking services is expected to have a positive impact on the country’s financial inclusion levels. According to the report, the ratio of number of depositors to adult population increased from 54% in 2019 to 56% in 2020, indicating an improvement in access to banking services.
“We are committed to creating an enabling environment that supports economic growth and development,” said [Name], Governor of the Bank of Botswana. “This expansion is a significant step towards improving financial inclusion and access to banking services for Botswana’s citizens.”
Mobile Money Transfers/Payments
The report also highlighted the growing importance of mobile money transfers/payments, with ATMs being increasingly used for these transactions.
Conclusion
Overall, the expansion of banking services is expected to have a positive impact on Botswana’s economy and improve financial inclusion levels. This move will contribute to creating an enabling environment that supports economic growth and development in the country.