KBA CEO CHAT - Anchoring Sectoral-Level Growth Amid Fragile Post-Covid Recovery

CEO | Moezz Mir, SBM Bank, CEO
MONTH | May 2021
Chat Admin
Good morning everyone! I trust you are well
Chat Admin
Welcome are pleased to welcome you to yet another session of My Chat with a Bank CEO. Today's chat topic is Anchoring Sectoral-Level Growth Amid Fragile Post-Covid.
Fredrick Juma
Good morning.
Chat Admin
We are honoured to have Mr. Moezz Mir, SBM Bank, CEO host this morning's chat session. We look forward to your participation and engagement. As we await the official start, please feel free to send in your questions and thoughts around the topic of the day and the CEO will take them from 10am.
Fredrick Juma
Banks have done a tremendous job is supporting business/individuals through the restructuring of loans. How long are Kenyan banks likely to continue with this noble trend? Are they likely to "get tired" along the way if the pandemic persists and hurt more businesses?
Fredrick Juma
To what extend have SMEs been affected by the pandemic and what strategies can some of them employ to be back on their feet?
eric asuma
Good morning, looking forward to today's session
Chat Admin
Good morning Fredrick! Thank you for the questions. All are welcome to send in their questions and share their thoughts on Anchoring Sectoral-Level Growth Amid Fragile Post-Covid Recovery and we will hit the ground running promptly at 10am.
Fredrick Juma
There was hope that with the Covid-19 vaccine, sectors would now recover. With Kenya now not sure whether they will get a vaccine, banking on countries that want to throw away expired ones, how will this affect Kenyan economy in terms of investments with the Indian variant in Kenya?
maina NJUGUNA
Good morning Mr Mir
David Indeje
Good morning:
maina NJUGUNA
What has SBM Bank done to make their customers, especially the SMEs handle the recovery better and sustainably for both your bank and the businesses?
David Indeje
Q1: In the medium term, what needs to be done to bolster the recovery process because Q1 2020 numbers were terrible for a majority of the sectors save only for the agricultural sector.
Chat Admin
Maina and David, Good morning, we are pleased you could join us this morning.
Chat Admin
Catherine, Nyambura, Anne, Comark, Peter, Wachera, Hilda, Charlene, Mirriam, Elizabeth and Clifford. Karibuni. We are happy to have you on the chat.
Moezz Mir
Good morning everyone Im looking forward to an engaging session today.
Margaret Kimani
A very good morning Mr Moezz, looking forward to an insightful session
John karuhi
God Morning Sir, Why is it that the Banking Sector in Kenya doesnt innovate even in times of crisis like the pandemic since last year?
Moezz Mir
After more than one year, since the advent of the coronavirus disease, we are still seeing the impact of disruption, many sectors have been significantly impacted, these include travel, tourism, aviation and some SME sectors...so far banks have worked with clients, restructuring an estimated 1.7 trillion to date worth of loans, which shows the support provided by the industry to the economy.
Esther Oloo
Good Morning. Looking forward to the discussion
David Indeje
Q2. Are you able to share your comment on the possibility of systemic risk facing banks in Kenya to likely remain high in the wake of the third wave of Covid-19 infections and the high proportion of weak loans.
John karuhi
An example is this, Why cant the bank have a common pool to reduce the operating costs. Why not have Single ATM Operability in the country.? An area can have many ATMs from different banks, yet it can have a single ATM
Moezz Mir
Further to the identified sectors, we have seen an impact on peripheral industries that support the identified sectors above...this is why businesses in the affected sectors really need to redefine their market capture area and expand outreach in light of the changed circumstances...effectively we need to expand our client base to reduce concentrated risks.
Moezz Mir
Thanks Fredrick I see your question
Moezz Mir
Banks will always be adaptive to their client needs and in relation to current environment. Whats important is for continued communication between customers and their banks -- to always understand the challenges being faced in order to find relevant solutions.
Moezz Mir
I think SMEs have generally been impacted across the field. It is very important that SMEs relook at their strategies and adapt to the changing environment. This would mean, redefining their target market -- if required -- understanding the impact of cashflow and keeping a keen eye on operating costs.
Meshack Odunga
Hi Moezz Mirr, last month I went to one of my bankers asking for a small credit but the answer was... our policy can't allow us! so what do you mean by banks will always be adaptive!?
Moezz Mir
Hi David...we are blessed by the diversified sectors that Kenya has...hence the concentration risk of COVID impact has been muted...we have had an easement of the lockdown and we are cautiously optimistic on economic growth for 2021. As intimated earlier players in each sector need to redefine their strategic intent, in the short term. They need to take tactical, efficient steps that will lead to sustainability in the long term. I think it is exciting to see agriculture's resilience in the current environment, we need to invest in our agriculture sector particularly in mechanization and technology to mitigate against pest and weather risks. Agriculture is the bread basket, the demand for food will always rise with the increasing population; and will also increase job creation in rural segments which in turn will attract manufacturing investors across the agriculture belt.
Moezz Mir
Welcome Margaret
MARGARET KAMENWA
Thank you
Esther Oloo
I run my own consulting firm and bank with SBM. I recently inquired on how the bank can support SME's with small loans and was told at the moment there is nothing available for SMEs. How does SBM plan to support SME's during this challenging season?
Josephine Djirackor
Good morning everyone.Happy to be here
Moezz Mir
John I see your comment on innovation in banking. Innovation continues to happen in the banking sector -- both on a technology space and on a product development perspective.
Meshack Odunga
Hi Eshter Oloo, sAME EXPERIENCE WITH SBM BANK here. I thought I was alone!
Moezz Mir
We need to focus on the positives of this pandemic.
Moezz Mir
We have been forced to work in a disruptive environment, speed to adoption has been key. Harnessing technology and new ways to drive market access which businesses would not have considered had we not been forced by the pandemic to change.
Moezz Mir
On the same note, engagement with people globally has become much easier with the adoption of video calls which significantly reduces our time and cost of travel in turn reducing our cost of doing international business.
Catherine Mgendi
Good morning Mr. Mir. I am interested in finding out specifically the post-COVID measures that I can leverage when I walk into one of your branches.
Meshack Odunga
@moezz Mirr, you are the CEO of SBM Bank and we will be delighful you you answered what @ Esther oloo has asked above. SBM kenya is not helping SMES AT ALL! How can you opt to support traders/merchants and say arogantly that you can support service providers!? Mind you, I have banked with SBM from 2016 when it was still chase bank
Moezz Mir
Thanks Meshack, it is important to have a versatile business plan that shows the need for credit and demonstrates the cashflows.
Meshack Odunga
All this were in place but i was told.... its our policy!.
Moezz Mir
Esther please get in touch with our head of SME banking, fenwick.mbaka@sbmbank.co.ke
Moezz Mir
Hi Catherine, we have various measures, including temporary overdrafts to support those customers who have challenges with the repayment of their loans. We are also doing restructures for customers who are not able to keep up with their loan repayments. We are also doing capacity building to advise customers on various challenges presented by the COVID pandemic. Please contact our customer contact center at atyourservice@sbmbank.co.ke or please speak to any of our branch managers.
Moezz Mir
Going back to the impact of the pandemic, I see some questions on this, education platforms and centers of learning have enhanced accessibility globally...which means we can access global standard learning from the remotest parts of our country. This allows us to educate ourselves with global industry leaders and invest the learnings into our businesses. There is a lot of free content available now which we should take advantage of.
Chat Admin
interesting Point
Moezz Mir
Hi David, as a banking industry we do not have a high systemic risk due to our economic diversification as such we do not have a concentrated risk as some countries have.
Moezz Mir
John we are seeing interoperability within the sector, PesaLink is a good example of this. PesaLink is the cheapest and most convenient way to move your money across banks.
Chat Admin
Hello All
Chat Admin
Apologise for the technical issue. We are looking into it
Chat Admin
We can resume
Moezz Mir
Hi everyone our appologies