Unpacking Stanbic’s vehicle & asset finance

Keen about being an integral part of the growth story of Botswana and Batswana, Stanbic Bank takes the pain points of its clients seriously and responds by easing them with products that range from ownership of dream cars and homes to insurance cover and energy systems that enable people to sell electricity to BPC. Staff Writer KEABETSWE NEWEL spent time with the bank’s Head of Secured Lending, Wabo Moswate, to learn that when Stanbic Bank says “It Can Be,” it means converting slogans into concrete action

Unpacking Stanbic’s vehicle & asset finance
Wabo Moswate – Head of Secured Lending

Q: Kindly introduce us to Stanbic Bank’s vehicle and asset finance.

A: Stanbic Bank Botswana Vehicle & Asset Finance (VAF) is a renowned leader in the provision of finance for acquisition of one’s dream car, business vehicles, and equipment and financing for specialised commercial machinery. Whether you need a fleet of cars, delivery vehicles, trucks, tractors or bespoke made-to-order industrial machinery, the Stanbic Bank VAF team can advise on the best financing options and the most favourable repayment terms.

The purpose of this solution is to ensure that our personal clients own vehicles of their dreams and have ease of access to mobility.  From a business standpoint, we help various businesses acquire assets that can help them increase output and productivity, grow their businesses and contribute positively to the economy. Our overarching purpose as a business is to drive Botswana’s growth. This means starting with the very individuals and businesses, fueling their growth journeys and indeed their hopes, dreams and ambitions.

Q: There are several similar products in the market. What makes Stanbic Bank stand out?

A: We have the most superior client solutions that are tailored to meet our clients’ needs and facilitate ease of access to lending. Our value proposition is strong: we offer 0 percent deposit on vehicles that are three years old or less, and our clients can finance these vehicles over a 72-month period and have an option of a 30 percent residual value to assist in lowering their monthly instalments. We pride ourselves in our very quick turnaround because we understand that when a client has their heart set on a car, they want to drive it as soon possible.

We have partnered with various dealerships and original equipment manufacturers to ensure that our clients acquire vehicles and assets at the best possible credit parameters in the market and the cheapest financing costs. Further, our wholesale finance solution or floor plan comes with a world-class technological platform that enables the dealer network to manage their stock efficiently.

Q: At most times, and in the market in general, issues of lack of proper guidance to get the right and affordable supplier, as well as unsatisfactory financing options surface. At Stanbic Bank, how do you ensure that customers get the best financing options, favorable repayment terms, as well as a variety of affordable and reliable suppliers?

A: One of our key principles is treating our customers fairly and with disclosure of terms of financing from the onset. We have a dedicated team of specialists that helps facilitate this for our clients.  We work with a select number of reputable dealerships and original equipment manufacturers. This is to ensure that our customers have access to reliable and high-quality vehicles and assets. Access to quality assets and after-service matters - we want our clients to generate as much value as they can from the assets we finance.

Last year, in the midst of this pandemic, our customers came to us and informed us that they were unhappy with our pre-owned vehicle parameters. We listened and reviewed our deposit requirements to avail to them ease of mobility finance. The client experience and needs come first, and this is central to how we work.

Building on this, we have a number of strategic alliances like Ford Finance, John Deere Finance and various co-marketing campaigns with dealerships. The purpose of these strategic alliances is to ensure that we offer clients the best and affordable financing options in the market.

Q: Stanbic has a new solution, offering 0 percent deposit requirement on vehicles aged 3 years or less for individual clients. When and why was this solution introduced?  

A: This solution was purely client-driven, once again to help transform our clients’ dreams into lasting realities as we strive to drive their growth.  Most of the employed population (90 percent) earn a salary of P10 000 or less, and most of our clients are looking for cheaper pre-owned vehicles. The challenge they have is that due to their little income, it either takes time to save for the 10 percent deposit that we used to require or they simply do not want to part with their hard earned savings. They would rather use it for other emergencies. To meet them halfway, we took a decision to remove the deposit requirement and avail to them ease of access to vehicle finance. They can use their hard-earned savings for other urgent emergencies that arise.  Nothing makes us happier than helping our clients realise their dream of owning their dream car. We want to make this as attainable and hassle-free as possible.

Q: Stanbic also offers wholesale finance solutions, including Floor Plan Financing Programmes for dealerships and equipment manufacturers. Kindly elaborate on what these solutions entail.

A: A wholesale finance capability is a platform that links all players in the retail automotive ecosystem, being the franchise dealership, the original equipment manufacturer and the bank. Stanbic Bank will offer the franchise dealership who meets its lending qualifying criteria a revolving 12-month floor plan limit and access to a wholesale finance technological platform to facilitate the procurement and management of stock (brand new/pre-owned vehicles).

Q: Let’s talk about Stanbic Insurance Premium Finance. What exactly does it offer your clientele?

A: Insurance Premium Financing is a loan product designed to finance payment of non-life insurance premiums due to an insurance company from the insured in a simple and seamless fashion. Instead of our clients using their cash to pay for their annual short-term insurance premiums, they can apply for an insurance premium facility. This facility helps them optimise their cashflows.

The bank enters into an agreement with the insurer and the insured. The agreement states that the bank agrees to pay immediately in full the insurance premium of the insured on the terms and conditions stipulated in the IPF Agreement. IPF requires endorsement by an insurer as it creates certain rights and financial interest of the bank in the insurance policy financed and should therefore be noted in the policy appropriately. The insured agrees to pay the bank the insurance premium at an agreed rate of interest over a period of 10 months.

Q: Through its home loans, Stanbic Bank says it has transitioned to not only provide home loans but to being a home services bank. Kindly share the details of this.

A: We have over the past two years transitioned from just providing home loans to being a home services bank. By listening to clients, we built a proposition that looks beyond just providing access to funding. Our clients have asked us to solve for some of the pain points that come with owning a house, such as loss of income, theft of contents and rising electricity bills. We have thus since introduced a number of solutions to ease some of these pain points by introducing a 12-month retrenchment cover on our home credit life, contents cover of P50,000 to protect against theft and a strategic alliance with energy systems to facilitate cost effective acquisition of solar panels.      

 

New solutions within our Home Services proposition :

  1. 100 percent Home Loan Finance for first time home buyers (new property owners do not need to spend years saving up in order to raise a deposit)
  2. Finance to build proposition(to enable individuals to easily buy plots and subsequently develop them).
  3. Secondary/investment property finance.   
  4. 12-month Retrenchment Cover on Home Loan Credit Life(in the event of retrenchment the policy owners home loan instalments will be serviced for a year while they look for a job or get their lives back on track).   
  5. P50 000 Household Contents Cover on Homeowners comprehensive insurance policy(we also help secure our clients property contents , should there be a break-in, you can claim for up to 50 000 to replace whatever has been stolen).
  6. Strategic alliance with energy systems to enable our clients to acquire cost effective solar panels  (green energy has proven cheaper to sustain and also as a complementary energy should there be power cuts)

 

Q: How does your 100 percent Home Loan Finance work for first time home buyers?

A: The offering is availed to customers who buy or build their first homes. In achieving that, customers are not required to bring forth any deposit when purchasing or building their homes. We also pay for their valuation and bond registration fees.

Q: You mentioned a Stanbic Bank product that finances individuals to buy plots and subsequently develops them for clients. Exactly what happens there?

A: Yes, we finance our customers to purchase plots and develop them. This is applicable to plots in Gaborone and the Greater Gaborone area and financing is up to 100 percent for first time homeowners.

Q: Please explain your 12-month retrenchment cover on your Home Loan Credit Life?

A: This is a solution offered to our clients to support them through difficult times brought about by retrenchments. In these events, our customers’ loans will receive 12 months’ instalments while they seek new employment or avenues to get back on their feet.

Q: You have a strategic alliance with energy systems to enable your clients to acquire cost effective solar panels. What motivated this?

A: We consider use of green energy an important part of our environment. Through our partnership with Solahart Botswana, we afford our customers the opportunity to install solar equipment at a 10 percent discount on the retail price. This also allows our customers to sell back excess electricity to the BPC Rooftop Solar Programme. Electricity is becoming extremely expensive and we want to help our clients manage these costs better, as well as have a greener footprint when it comes to energy consumption.

Q: You earlier spoke about a home owners’ insurance policy. 

A: Our home loan offering comes with homeowners’ comprehensive insurance. This is packaged with house content cover of up to P50,000 and all risk insurance of P5,000. This is aimed at giving our clients peace of mind with their goods and belongings. We want to be more than a bank to our clients, and so we strive to offer more than simply home loan products.

We are incredibly excited about the proposition we offer clients from both the home ownership space and from vehicle and asset financing. These are premised on the desire to bring hope to our clients in this otherwise uncertain time and to fuel their hopes, dreams and passions because with Stanbic Bank, It Can Be – dreams can transform into lasting realities and one’s growth story can truly be achieved. With our customers and clients at the heart of all that we do, we remain confident we are the right partners for our clients as we work to contribute to the growth story of Botswana and Batswana.