Banks in the U.S. once gave away toasters and irons to lure depositors. Banks in China are upping the ante. With customers pulling out money and putting it into higher-yielding investments, they are offering Mercedes, iPhones, and daily deliveries of vegetables to sidestep interest rate caps and get people to stash some yuan in savings accounts.
Chinese banks are hemorrhaging their deposits, says Rainy Yuan, an analyst at brokerage Masterlink Securities in Shanghai. Chinas banks lost 950billion yuan ($154billion) of deposits in the three months through September, the first quarterly drop since 1999. In the first 11 months of the year, new deposits were 23percent lower than in the same period last year, Peoples Bank of China data show. Offering incentives to attract money is not the solution, Yuan says: There is no fix for this. All the efforts they made to win savers back will only push up the costs, so its a losing battle to fight.
23% Decline in new deposits in the first 11 months of 2014 vs. the same period last year. Savers seeking higher returns have been pouring money into online money-market funds offered by the e-commerce companiesAlibaba Group(BABA)andBaidu(BIDU). One fund, YuE Bao, started last year by Alibaba affiliate Alipay, drew 535billion yuan in its first 15months of existence from 149million customers, more than the populations of France and the U.K. combined. Users simply tapped a few buttons on their mobile phones to secure an annual rate of return that climbed as high as 6.8percent before falling to about 4percent recently.
Point-of-sale terminals help in carrying out cashless transactions at merchant outlets by swiping credit/ debit cards on the POS machine. One can use Agar Visa Card & International Cards (VISA and MasterCard) in our PoS network to effect payment with free of charge. A purchase using our Agar Card is subject to a daily limit of Br. 10, 000.
In the 21st century, money is no longer bound in the vault room as in the cases of gold or printed notes. Rather digital money is changing accounts across the world at the speed of light. Modern banking has now passed the boundaries of human touch and even crossed physical national boundaries.
In order to fit suit with such rapidly developing electronic business in the international market, our Bank has now introduced a full-fledged Payment Card Services, investing millions of Birr.
As part of launching of its first payment card services, our Bank has so far installed 19 ATMs in Addis and 7 in major Regional Cities In pursuit of continuous expansion, more will be deployed in the capital city and regional cities and towns, within the near future.
Our Bank is an ice-breaker in introducing the first of its kind Wide Area Network (WAN) in the year 2000. This service has enabled clients to access their accounts from any one of the Bank’s branches. However, we are living in a highly dynamic and ever-changing world that is greatly characterized by rapid technological innovations that are out-dating yesterday’s best. That is why we are in a great stride to realize the automation projects at hand.
Technology has changed how human being lives and has become part of every day’s life. As a result, many agree that our world has become a small village due to exponential developments in ICT.
Wegagen Bank has been relentlessly striving to find a better solution to ameliorate clients’ problem’s thus making it a pioneer in many of the practices and techniques, particularly implementing Wide Area Network.
As a historic move, the Bank has now taken a key step in migrating the existing core banking system into a more versatile and ISO standard one. Implementation has already kicked off and in-house trainings on the system are underway for pertinent staff of branches and the head office.
In addition, the Bank has also dealt for the supply of multiple solutions such as Internet Banking, SMS Banking, Credit Management System and Anti-Money Laundering packages. These new systems will undoubtedly add value to the Bank’s series of ICT based efforts to ensure excellence in customer services and improve the service landscape of the Bank.
InfrasoftTech, an Indian based prominent software vendor, is the supplier of the whole solutions.
Wegagen Bank, established in June 1997 with a paid up capital of Birr 30 million, the highest initial capital at the time, conducted Annual Shareholders General Assembly at Hilton Addis Ababa on November 18, 2010. At the 17th Ordinary and 10th Extraordinary Meetings of the Shareholders, the Bank’s Board of Directors declared an all time high Gross Profit of Birr 317.5 million, which has resulted in Net Profit of Birr 223.3 million for the fiscal year 2009/10.
The net profit resulted in 23.6% growth over the preceding fiscal year and during the same time the Bank also paid Birr 94.2 million profit tax to the Government. The Chairman of the Board of Directors commended such a marvelous achievement in profit despite challenging circumstances in the macro and task environments, particularly the credit cap set by the central Bank that was aimed at containing the raising inflationary situation.
On Friday November 5, 2010, Wegagen Bank and KfW Entwicklungsbank, the German Development Bank signed a Credit Guarantee Framework Agreement to securitize loans of Wegagen Bank to Microfinance Institution (MFIs) via a 50% credit guarantee arrangement through CapitaLink Project. This agreement is expected to curb a shortage of loanable funds that are constraining the growth and wider outreach of MFIs. The agreement is a crucial step forward in creating a linkage between the banking and the micro finance institutions and developing the financial sector to contribute to poverty alleviation and economic development in Ethiopia.
This agreement is part of the German Government’s support to Ethiopia under the framework of engineering capacity building program (ecbp) through KfW. It is implemented for four years by two partners, Triodos Facet and First Consult, under the umbrella of CapitaLink Project.
The Bank’s human resource development strategy aims at hiring experienced and qualified staff, enhancing competence by improving the skills of new and existing staff, and developing a working environment that would create a sense of commitment and belongingness. Competition for acquiring highly qualified bankers has intensified due
to the increase in number of private banks and branches of the different banks.
The Bank’s human resource development strategy aims at hiring experienced and qualified staff, enhancing competence by improving the skills of new and existing staff, and developing a working environment that would create a sense of commitment and belongingness.
Competition for acquiring highly qualified bankers has intensified due to the increase in number of private banks and branches of the different banks.