Product Catalogue - National Bank of Malawi

Transcription

Product
Catalogue
2014
Mission Statement 2
Introduction 3
Vision
Core Values
Wholesale Banking
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Working Capital Finance
Finance for Exports & Imports
International Trade
Bonds & Guarantees
Agricultural Loans & Seasonal Overdrafts
Project Finance & Public Sector
Card Based Products
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•
Mo626ice
Utility Bill Payment
Visa Debit Cards
Visa Encashment
Visa Electron
Visa Classic
Visa Gold
Visa Platinum
4-5
6
7
8-9
10
12
13
14
16
18
20
21
22
23
Personal & Business
Banking Products
Mortgage Finance &
Home Improvent Loans
Personal Banking Products
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24
Personal Vehicle Loans
Executive Loans & Overdrafts
Employer Guaranteed Loans
Consumer Loans
Asset Based Finance Loan
Personal Overdrafts
25
26
27
28
30
31
Pay Day Loan
32
FiestaSave Account
33
Retail Banking Products
BankNet Online
34
Business Banking Products
SME Business Finance
36 - 37
Vehicle & Asset Finance 38
Moneygram
39
American Express
International Dollar Card
40
Accounts
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41 - 44
Current Account
Savings Account
Special Savers Account (SS Account)
Fixed Term Deposit
Short Term Deposit (Call Account)
Mlimi Account
Account Opening Requirements
Student Serve Account
Treasury & Investment Banking •
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46
Forward Exchange Contract
Currency Option
Foreign Currency
Denominated Accounts (FCDAs)
Time Deposits
Rediscounting of Treasury Bills
Reserve Bank of Malawi
Bills Local Registered Stocks
NBM Capital Markets Limited
48
NBM Pension Administration Limited
50 - 51
Contacts
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Head Office
Head Office & Service Centres
52
53
2
National Bank Product Catalogue 2014
Intoduction
National Bank of Malawi (NBM) was established in 1971 as a
result of the merger of Barclays Bank DCO (Dominion Colonial
Overseas) and Standard Bank, which had its origins in the
Republic of South Africa.
The merger of the two banks brought together complementary
operations to provide a countrywide spread of financial products
and services.
The Bank was listed on the Malawi Stock Exchange on 21st
August 2000 with an over subscription of 3.4 times. It is currently
one of the most liquid stocks and a key and vibrant player on the
stock exchange. It is the biggest bank by assets with a mission
to provide the best financial services in Malawi and the region,
distinguished by outstanding service, product innovation and
sustained earnings growth.
The Bank’s shareholding as at 30th December 2013 is as
follows:
Press Corporation
Old Mutual Group
Members of the public
Employees (ESOP)
51.5%
24.9%
21.8%
1.8%
Today, National Bank of Malawi is the leading bank in Malawi
with a network of 30 service centres and over 80 Auto Teller
Machines (ATMs), providing the banks customers 24/7 access
to their accounts. The National Bank ATMs, also accept all VISA
branded cards. Currently there are plans to open a number of
additional service centres in strategic areas across the country.
The Bank also has a robust and exceptionally customer friendly
internet banking service that has been proven to be of world
class standard. BankNet Online, as it is called, is safe, secure
and versatile. It is available to both corporate as well as personal
customers. Customers must visit www.banknet.co.mw for more
information on BankNet Online.
The source of National Bank’s success has been the versatility
of its Board, which has a professional, experienced and qualified
team of nine executive and non-executive, management and
staff whose main belief is its mission and core values. The Bank
is dedicated at providing innovative products and services to its
customers.
The Bank believes in adding value to its customers through
provision of personalized services across its network of service
centres.
The Bank’s service centre management throughout its network
is well equipped to deal with various aspects of customers’
personal and business needs ranging from personal loans,
consumer finance, home loans, working capital finance, project
finance, agriculture loans, finance for imports and exports, to
more complicated structures such as international trade finance,
mortgages and asset finance.
technology, mortgages, asset finance, and legal aspects of
banking, among others, to ensure a well co-ordinated and
efficient delivery of innovative products and services.
As a leading and highly respected corporate citizen in Malawi,
National Bank of Malawi is actively paricipating in deserving
charitable and social activities.
For further information, please feel to contact the management
of any National Bank Service Centre who will always be ready to
assist you or call the Bank’s call centre on +265 1 831 485 or visit
the bank’s website: www.natbak.co.mw
George Partridge
Chief Executive Officer
National Bank’s service centre managers draw support from
head office functions with specialist skills and knowhow in credit
management, treasury services, international trade, information
3
Wholesale
Banking
This is a flexible funding facility designed to expand and contract
with working capital requirements.
Borrowers may overdraw their current accounts up to agreed
borrowing limits, with interest calculated on a daily basis on the
amount outstanding at close of business each day and payable
in arrears at the end of the calendar month.
How much will it cost?
Interest is charged at an agreed rate, usually a fixed number of
points above the base rate or prime rate.
How will my business benefit?
An overdraft provides you with day-to-day financing requirements.
Please contact your nearest NBM Service Centre and speak to
the Service Centre manager or Account Relationship Manager to
make arrangements. We can work together.
Prospective Customers
Limited liability companies
n
Sole proprietorships
n
Partnerships
n
Parastatals
n
Multinational companies
n
Wholesalers/retailers
n
Agricultural estates
n
1.Short Term Loans
Short-term working capital loans provide fixed lump sums with an
agreed repayment period of up to 2 years.
Such loans are repaid on a monthly or quarterly basis as agreed
between the bank and the customer.
Interest is calculated at an agreed rate on the full loan amount or
the principal outstanding.
4
With a short term loan, separate loan account will be opened
for your business and the loan funds are transferred to your
operating current account.
Repayments can be made on a regular basis without affecting
the cash flow of your business operations.
All corporate customers with short term financing needs e.g.
bulk purchase of raw materials, purchase of produce for export,
payment for imports etc.
2.Foreign Currency Loans
These loans are available to our exporting customers to enable
them purchase produce or crops like tobacco, rice, cotton, pigeon
peas etc., locally and for export.
Loans are available against firm orders or against inward Letters
of Credit as the case may be.
You borrow locally in US Dollars, Sterling or Rand, and convert
the currency to Kwacha to enable you purchase the commodities
locally.
After export, customers receive US Dollars, Sterling or Rand as
the case may be, and repay loans at agreed instalments in the
foreign currency that they borrowed.
Exporting customers have the benefit of enjoying much lower
interest rates than the Kwacha denominated borrowing interest
rates. Customers also have a hedge against devaluation as they
borrow in foreign currency, receive Forex for their exports and
repay Forex to the bank.
Wholesale
Banking
Exporting customers with Dollars, Rand or Sterling receivables
that export against firm orders, or Letters of Credit.
3.Medium Term Loans
Term loans are available to enable corporate customers purchase
assets whilst matching finance costs to cash flow produced by
the investment.
Medium term loans are designed to help our customers to
finance investments in capital items such as improvements to
their premises, factories and/or purchasing of equipment and
processing machinery.
n
Term loans are useful if you can predict the likely revenue streams from the investment and want to match finance costs to revenue or simply if you want to spread the cost of your investment over a period of time so as to avoid unnecessary strain on your cash flow.
n
Term loans, are for a specified fixed period with agreed repayment schedules over an agreed period normally not exceeding 6 years.
For medium term loans, interest is calculated at an agreed
rate over the full amount of the loan or the outstanding amount
whichever is the case.
A moratorium is agreed depending on the anticipated completion period.
n
Development companies.
n
Property development companies.
n
Well established building construction companies.
n
5.Syndicated Loans
Reserve Bank of Malawi has set guidelines with regard to credit
concentration and group or individual companies’ exposure. This
means that the Bank cannot lend money beyond a certain limit.
In such cases NBM is capable of securing funds by involving
other Banks either locally or internationally. Each bank commits
to contribute a proportion of the loan under the terms of a
single loan agreement between the lending syndicate and the
borrower.
The syndicate lenders will agree on the pricing that normally
includes Commitment and Arrangement fees.
This facility can be negotiated through our Wholesale Banking
Office based in Head Office, in Blantyre and satellite office in
Lilongwe.
4.Construction Loans
n
This facility provides our customers wishing to embark on large investment projects, the flexibility of borrowing from or more different Banks of good repute.
n
This enables our corporate clients to borrow large amounts, which are not affected by credit concentration or capital adequacy constraints of the Bank.
n
Interest is charged at very competitive rates, normally at base plus a margin. The margin depends on the amount, security offered and the benefits derived from the relationship and the project.
These are term loans of specific amounts, for construction
purposes. Such loans are for a stated period of time normally
exceeding 2 years but not more than 7 years.
Large corporate customers, multinationals, international companies
wishing to expand in Malawi.
Interest so charged will be debited to your operating account.
All corporate customers who require purchasing of capital items
or who want to improve their premises, factories etc.
Interest is calculated at an agreed rate on the full loan amount or
the principal outstanding amount.
Draw down is at various stages against the production of Architect’s certificates, Engineers/Quantity Surveyors certificates or similar documentation.
n
Such loans are available to property development companies and building construction companies. Security required is the asset being financed or an alternative asset.
n
Repayments of the outstanding loan will not normally commence until the projects are completed.
n
5
Wholesale
Banking
Finance for Imports & Exports
Finance for Exports
a. Pre-Shipment Finance
For exporting customers, our Bank is able to provide immediate
financing to enable such customers to purchase produce locally,
and prepare for shipment abroad.
A good track record of export business in tea, tobacco, cotton,
sugar, coffee and other export products is a pre-requisite to
obtaining pre-shipment finance.
This finance is extended by way of an overdraft or short term
loan, and may be extended in local currency (Kwacha) or foreign
currency, depending on availability of funds in the market.
b. Export Bills Negotiation
Companies who export goods outside Malawi by way of inward
confirmed irrevocable letters of credit may obtain an advance of
up to 90% of the value of the export letter of credit - from the
Bank.
Once the relative export documents under the export letter of
credit are submitted to the Bank, the Bank will negotiate the
documents and accompanying bill of exchange (draft) drawn at
either sight or usance.
It is imperative that all the parties to the Letter of Credit are of
good standing. Negotiation is on a strict recourse basis.
c. Export Discount Facility
Export customers who sell their goods on the open account
but against firm orders from their buyers overseas, can obtain
funding from our bank.
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Once the bank is satisfied with the credit standing of the buyers
overseas, the bills of exchange, and supporting documents
covering the exports will be discounted at the Bank’s counters.
This takes the form of purchasing a sight bill or term bill of
exchange for less than its face value(usually 90% of the face
value of the bill).
This form of financing improves our customers’ cash flow
by providing immediate funding against export documentary
collection.
d. Advances Against Outward Collection
This is similar to the export discount facility. The difference is that
in this case an advance against an outward collection represents
only a proportion of the bill amount. The bank is not a party to
the bill.
Finance for Imports
Loans Against Trust Receipts
A loan against trust receipts enables our corporate customers
to retain control of imported goods whilst undertaking to pay the
sales proceeds to the Bank.
How does it work?
On receipt of shipping documents, major importers can request
our Bank to store goods in a nominated warehouse under our own
name, until they require releasing them against final payments.
Major importers, who order goods in bulk and have wellestablished reputation, but have a seasonal cash flow problem.
Wholesale
Banking
International Trade
Documentary Collection
A documentary collection is used to obtain payment when the
risk of using open account is too high and where a documentary
letter of credit is considered unnecessary.
How does it work?
Your shipping documents covering imports into Malawi are
forwarded by your suppliers through the banking system, to
one of our service centres in Malawi. The shipping documents
are received with a set of instructions to release the documents
against receipt of payment, against an undertaking to pay or
against an acceptance of a bill of exchange.
When you are shipping company/transport documents are sent
through our bank, you are spared the problem of having to
retain safely the documents in your company, and then later on
arranging to remit the foreign currency for payment.
When the documents covered under documentary collections are
processed through our bank, we are able to advise and arrange
for any exchange control requirements, and also final remittance
of funds to the overseas bank.
Through our overseas correspondents we are able to provide a
worldwide documentary collection service covering both imports
and exports and ensuring that funds are transferred as per the
terms of instructions between buyer and seller.
The most important benefit is speed in transferring funds and
security in handling documents.
Documentary Letter of Credit
A method of financing international trade, a letter of credit is
better described as any arrangement whereby a bank, acting at
the request of and on the instructions from a customer, is to make
a payment to or to the order of a third party, or is to accept and
pay bills of exchange drawn by the beneficiary against stipulated
documents, provided that the terms and conditions of the Letter
of Credit are strictly complied with.
In documentary Letters of Credit, all parties deal in documents,
not goods.
Therefore an underlying status report on the supplier should
be obtained before entering into a contract, to ensure that the
supplier is a legitimately constituted and reputable concern and
likely to deliver what is required.
Payment is then made upon presentation of documents, which
strictly comply with the terms and conditions of the credit.
This facilitates smooth operation of trade between seller and
buyer and also safeguards settlement especially when Forex is
scarce. Letters of credit can be opened in any currency of your
choice e.g. Dollars, Euros, Rand or Japanese Yen.
All corporate customers who import goods or raw materials into the country.
n
Manufacturers who wish to source raw materials for manufacturing into final products and for re-export.
n
Companies importing capital equipment.
n
Importers and trading firms.
n
Special Requirements
Formal limits for lines of credit to establish documentary credits
are determined by your service centre Manager or Account
Relationship Manager.
For non-borrowing customers some upfront-cash margin may be
required.
Trade Information
Our Bank provides trade information of various kinds as follows:
n
Credit Information Report
Provide our importing and exporting customers with bankers’
opinions and credit standing of their counterparties both locally
and overseas.
n
Trade Enquires
Through our association with Malawi Investment Promotion
Council, the Malawi Confederation of Chambers of Commerce
and Industry, corresponding banks and other international
organizations worldwide, we are able to locate overseas importers
of your local commodities.
n
Letters of Introduction
These introduce our corporate clients or executives to our
overseas agents and correspondents, where from they might
seek assistance and advice during their business trips.
If you wish to import goods you ask us to open a confirmed
irrevocable letter credit and we will advise it to your supplier’s
bank.
Depending on your contract and agreement with the supplier, the
letter of credit may be drawn ‘at sight’ or ‘at usance’, but normally
not exceeding 180 days.
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Wholesale
Banking
Bonds & Guarantees
Tender Bond
Issued in support of customer’s tender as assurance of the
intention of the customer to sign the contract if the customer’s
tender is accepted.
In the event of default (i.e. failing to accept the contract if awarded
to the tenderer) the guarantor provides within the limits of the
guarantee to make payment of a stated sum of money to the
beneficiary.
If you were tendering for the supply of goods or construction of
a project the employer (buyer) would normally request a 10%
cash deposit to enable you to tender for the contract. If the bank
issues the Tender Bond on your behalf, the bank undertakes to
accept responsibility for the financial obligation and therefore a
cash deposit normally becomes unnecessary.
All corporate customers involved in tendering or supply of goods
to government and other major organizations, also foreign
companies aiming to tender for work in Malawi.
In the absence of this guarantee, customers who are awarded
contracts after tendering are required to put cash up-front, thus
risking straining their cash flow.
n
All corporate customers involved in tendering or supply of goods to government and other major organizations.
n
Foreign companies wishing to tender for work in Malawi. In this case, we normally require a counter guarantee from an overseas Bank.
Like all types of guarantees/bonds, the customer needs to agree
a limit with the Bank.
Advance Payment Guarantee
This type of guarantee is available to our customers who tender
for major contracts.
When a contract is awarded there is usually an arrangement for
the contractor to make drawdowns under the contract or to obtain
advance payments.
The customer needs to set a limit for such obligations, with his/
her Service Centre Manager or Account Relationship Manager
and a counter indemnity from the customer needs to be taken.
The normal advance payment is 10% of the contract amount
but may be more and payable at specified stages of project
implementation.
Performance Bond
If the buyer/employer wishes to have security for his advance
payments, he will ask the supplier/contractor for a guarantee that
the monies being advanced to the supplier/contractor will be repaid within the validity of the contract.
A performance bond is given in support of a customer’s obligation
to fulfill a contractual commitment, normally required after a
customer has been awarded a contract to perform.
When a performance bond is issued on behalf of our customer,
the bank guarantees to the third-party (buyer or employer) that
the bank will pay any claims that may arise due to non-compliance
or faulty completion by the supplier or contractor, up to the total
amount of the amount guaranteed.
8
The advance payment guarantee acts as security to enable you
to obtain cash in advance to enable you to finance your project,
and then complete it as per the terms of the contract.
Wholesale
Banking
Bonds & Guarantees
Customs Guarantee
Customs authorities normally request that import duty or customs
duty should be paid for either in cash or bank certified cheques.
Customers wishing to pay duty by means of their own cheques
can obtain a guarantee from the bank. In this way the bank
undertakes to Malawi Revenue Authority (MRA) that it will honour
all correctly drawn cheques up to a certain limit per day.
Customers avoid the risk of carrying large amounts of cash for
customs duty, or the expenses of purchasing a Bank certified
cheque each time a cheque is required.
All customers who import and have trading licenses.
Customers have to set up a guarantee limit with the bank.
Other Types of Bonds, Guarantees
Our bank is able to establish other special guarantees upon
request.
Corporate customers engaged in major supply of goods or construction contracts.
n Overseas or local contractors wishing to bid for major construction projects in Malawi, such as road construction.
n
Like all types of guarantees/bonds, the customer is required to
set a limit for guarantees/bonds with his/her Branch Manager or
Account Relationship Manager.
Retention Money Guarantees
Given in support of contracts, which call for, say, 10% of each
payment to be withheld until the project is completed and
accepted by the contracting buyer - sometimes up to one year
after the completion date.
These include:
n Bonded warehouse
n Manufacturers rebate
n Surtax bond
n Temporary importation of goods for re export
n Immigration guarantees
n Shipping guarantee
Some of the specialized bonds are pre-printed on Malawi
Revenue Authority (MRA) documents and customers must first
establish with MRA whether the guarantee is to be issued on the
Bank’s format or MRA special forms. It is usually a requirement
that the bonds/guarantees issued in favour of government or
MRA are executed under seal.
The guarantee enables the contractor to receive the total amount
of each payment, whilst assuring the buyer that the funds will be
refunded if the contractor is not able to fulfill his/her obligation or
there is defective workmanship, repairs will be done at no cost
to the buyer.
n Corporate customers who are involved in major construction work
n Overseas or local contractors involved in major construction work.
9
Wholesale
Banking
Agricultural Loans
Seasonal overdrafts for Agriculture
This is a seasonal facility made available to the agriculture sector,
mainly tobacco growers to assist with the growing and marketing
of the crop.
Other commercial enterprises elligible under this facility include
seed maize, tea, coffee, sugar cane and livestock producers.
Borrowers are allowed to overdraw their current accounts against
agreed cash flow projections up to an agreed seasonal limit.
The facility is available either in Malawi Kwacha or US Dollar
depending on the currency of the revenue streams.
This facility provides farmers with seasonal financing requirements
e.g. fertilizer and chemical purchases, payment of wages and
rations, tenants’ crop purchases, transport etc.
The Bank allows draw downs monthly, quarterly etc. in line with
cash flow agreed between customer and the bank.
Qualified Agricultural Officers visit customers, to give advice
where necessary.
The Bank monitors proceeds of sales received from Auction
Floors and other established markets. The Bank registers a
Tobacco Stop Order with Auction Holdings Ltd or enters into
irrevocable arrangements with produce buyers to pay sales
proceeds through growers’ accounts with the bank.
Interest is charged at an agreed rate, usually a fixed number of
points above the base rate.
n Smallholder farmers with not less than 3 years experience in growing tobacco.
n Sole proprietors, mostly Malawians in the rural areas, who farm on their own land or leased land.
n Tobacco farmers.
n Commercial farmers.
n Limited companies engaged in the growing of tobacco and other commercial crops.
10
& Seasonal Overdrafts
Customers are usually required to put up a contribution of up to
40% of the total financing requirement from their own funds.
Crops must be grown on land held on a freehold or leasehold
by the farmer and grower must be registered with the authorities
where applicable
Capital Expenditure Finance
Short and Medium Term Loans
Term loans are available to help large estates acquire items of
capital nature such as tractors, irrigation equipment, construction
of tobacco curing barns, etc. The loans are available both in
Malawi Kwacha and US Dollar.
n Term loans are useful if you want to spread the cost of your investment over a period of time so as to avoid unnecessary strain on your Cashflow.
n Term loans are for specified fixed period with repayment schedule (normally in annual instalments) over an agreed period normally not exceeding 4 years.
Interest is calculated at an agreed rate over the full amount of the
loan or the outstanding amount whichever is the case.
Interest will be debited to your operating current account which is
usually the seasonal overdraft account.
All large estates engaged in production of tobacco and other
commercial crops such as tea, coffee, seed, and maize.
Wholesale
Banking
Agricultural Loans
& Seasonal Overdrafts
11
Wholesale
Banking
Project Finance & Public Sector
a. Project Infrastructure Finance
Finance for projects for new and exusting businesses e.g.
construction projects, IT infrastructure projects, mining projects,
transport projects, energy projects and manufacturing projects.
The bank is also positioned to finance projects under Public
Private Partnerships (PPPs) either individually or through local
and international syndication with other local and foreign banks
respectively.
This form of financing is usually long term i.e. more than 3 years
up to a maximum of 10 years. This finance may be availed in
Malawi Kwacha or foreign currency depending on availability.
b. Commercial Property Finance
Finance for the acquisition of properties for own occupation or
commercial purposes offered to new and existing businesses.
The customer is required to contribute towards the cost of
acquiring the property and the debt:equity mix is based on the
customer’s risk profile.
c. Finance for Public Sector Entities
Finance in the form of loans and overdrafts specifically availed to
public sector entities which are able to generate own resources
to service facilities.
Please refer to other products under Wholesale Banking Division
which can also be availed to public sector entities.
12
Wholesale
Banking
Mo626ice
Mo626ice is a Mobile Phone Banking system through which
you can access various banking services from mobile phone
handsets. Mo626ice can be accessed from any mobile phone
network in the world as long as the number you are using is
registered on the system. You can access the services by dialing
*626# on your mobile.
Getting Registered and Requirements for Access
Visit any of National Banks service centres and complete the
Mo626ice application form. Alternatively you can download the
application form from the banks website, www.natbank.co.mw,
complete and then drop it at your nearest National Bank service
centre.
Services Offered
By using Mo626ice you can access a range of banking services
as follows:
You also need to have the following; n
A current or savings account with National Bank of Malawi
n
Any Mobile Phone Handset
Access you account balance and mini-statement from anywhere any time
n
Make Funds Transfer to any account within National Bank
n
Top Up your mobile phone or even another person’s phone
n
Make Utility Bill Payments to ESCOM, Water Boards etc
n
Order Cheque Book Issue Stop Payment instructions
n
Receive Alerts and Cheque confirmations above set limits
n
Make DSTV subscriptions
n
Benefits
Mo626ice is Simple and Secure means of banking. It gives you
freedom of doing transactions yourself and it’s very convenient
with services available ANYTIME and ANYWHERE.
Security
The system has 4 levels of comprehensive security features:
n
All transactions require a valid PIN
n
Only registered phone numbers can be used
n
Only registered accounts can be accessed
n
Set limit on Funds Transfers
13
Card Based
Products
Utility Bill Payment
1. All NBM Service Centres
2. ATMs
The service enables customers to pay their utility bills e.g. water,
electricity and DSTv subscription over the counter.
NBM currently have 80 ATMs located across the country where
customers can settle their bills and Top up their phones.
Advantages
Customers do not have to travel long distances to utility pay
points or Multichoice offices – saves transport costs.
3. Mo626ice
Very Convenient since National Bank of Malawi has a wide
network of Service Centres which run from the Northern to the
Southern part of the country.
Target
The service is open to both National Bank of Malawi customers
and non-customers.
Mode of Payment
Cash only or cash cheques issued by National Bank of Malawi
customers.
Deposit Slips
Special deposit slips for this service are available in all Service
Centres.
Important
Customer accounts are updated/credited within 24 hours,
however all payments made on Saturday and Sunday (Kamuzu
International Airport and Chileka) will be processed the following
Monday.
14
Payment of Bills and airtime top up ( Airtel, TNM, MTL & BURCO)
in the comfort of customers homes 24/7.
Benefits
There is no need to visit ATM or Service Centre to settle your
bills.
4. Banknet Online
Payment of Utility Bills without having to go to the Service Centre
or ATMs.
Card Based
Products
Visa Debit Cards
What is an NBM Visa Debit Card
Product Range
The following types of cards are available:
n
NBM Visa Electron
n
NBM Visa Classic
n
NBM Visa Gold
n
NBM Visa Platinum
How to Use your Card
n
Visit a shop where Visa sign logo is shown
n
When paying for your purchase, hand the cashier your Visa card instead of cash
n
Your card will be inserted/swiped through a card reader either by yourself or the cashier
n
After checking, verifying the amount, enter your PIN (Personal Identification Number) discreetly - this is the same PIN you use at the ATM
n
The machine will then verify the PIN
n
The bank will approve transaction only if there is enough money in your Bank account
n
You will be given a receipt for your purchase
n
It is easy, fast way to pay for goods and services. No queues.
Benefits
n
NO LOADING! NO LOADING! NO LOADING!
n
No prior loading of the card is required as the transactions will automatically debit your account online
n
No need to carry cash around
n
You can only spend money that you have in your account
n
You can use card to withdraw cash from any Visa Branded ATMs
n
You can use your card (Classic, Gold and Platinum) abroad
n
If your card is lost, it can be replaced as opposed to cash which cannot be replaced once lost
Important Tips
n
Please memorise your PIN and destroy slip immediately.
n
Never write it down or let anyone else use it
n
Never share your PIN with anyone else or let anyone else enter it for you
n
Never disclose it to anyone even to Bank staff or the Police
n
If you think someone may have discovered your PIN, you should change it at any NBM ATM immediately. Never use a PIN which can be guessed easily e.g. year of birth etc.
n
Your PIN should be entered discreetly and always shield it from view.
It is a Bank card which customers use for the following services:
a. Purchase goods and services using a Point of Sale (POS) terminal displaying the Visa symbol located at designated
merchants throughout the country (local) and beyond (international).
b. Drawing cash from any Visa branded ATM
Security
n
Your card is PIN protected
n
Entering your PIN instead of simply signing a receipt makes it even more secure
16
Encashment Fees at other local Visa branded ATMs
All transanctions will attract a service fee
Card Based
Products
Visa Encashment
This facility enables a client to withdraw funds in Malawi Kwacha
on NBM ATMs using any card branded with the Visa Logo or
Plus mark.
What are the benefits?
Fast and flexible.
n
24 hour access to encashment.
n
Easy and convenient.
n
The ATM limit will depend on the limit set on the card by the issuer.
n
Is this service secure?
The client will access his/her foreign currency account through
his/her PIN code which is immediately verified electronically.
Who is this service mainly for?
VISA card holders.
18
Card Based
Products
Visa Electron
What is NBM Visa Electron Debit Card?
It is a Debit Card that allows you to spend without having to
carry cash around. The Visa Electron Debit card can be used
as a means of payment in all shops where the Visa symbol is
displayed. It can also be used to draw cash at ATMs where the
Visa symbol is displayed.
How to use your card?
Visit a shop where Visa sign is displayed.
n
When paying for your purchase, hand the shop assistant your Visa Card instead of cash.
n
Your card will be swiped through a card reader on POS (Point of Sale) device either by yourself or the shop assistant.
n
After checking/ verifying the amount, enter your PIN (personal identification Number) discreetly - this is the same PIN you use at the ATM.
n
The POS device will then verify the PIN .
n
The Bank will approve transaction only if there is enough money in our Bank Account.
n
You will be given a receipt for the purchases.
n
It is an easy and fast way to pay for goods and services. No queues!
n
Benefits
n
NO LOADING! NO LOADING! NO LOADING
n
No prior loading of the card is required as the transaction will automatically debit your account online.
n
No need to carry cash around.
n
You can only spend money that you have in your account.
n
You can use the card to withdraw cash from any VISA branded ATM.
n
If your card is lost, it can be replaced as opposed to cash which cannot be replaced once lost.
Security
n
Your card is PIN protected.
n
You will be required to use your PIN each time you transact at the merchants Point of Sale Terminal or at the ATM.
n
Entering your PIN instead of simply signing a receipt makes it even more secure.
20
Important hints
n
n
Never write it down or let anyone else use your card.
n
Never share your PIN with anyone else or let anyone else enter it for you.
n
Never disclose it to anyone even to Bank staff or the Police.
n
If you suspect that someone may have discovered your PIN, you should change it immediately.
n
Never use a PIN which can be guessed easily e.g. year of birth etc.
n
Lost card
n
Stop Card by immediately reporting loss to your bank by phoning National Bank of Malawi Call Centre Number
01 831 471 appearing at the back of the card.
n
Report lost Card to the Police.
n
A replacement card will be issued.
Eligibility
Personal account holders.
Card Based
Products
Visa Classic
What is NBM Visa Classic Debit Card?
It is a Debit Card that allows you to spend without having to carry cash around.
n
The Visa Classic Debit card can be used as a means of payment in all shops where the Visa symbol is displayed.
n
It can also be used to draw cash at ATMs where the Visa symbol is displayed.
n
n
n
n
Your card will be inserted into a card reader or PIN pad on POS (Point of Sale) device either by yourself or the shop assistant.
n
n
The POS device will then verify the PIN.
n
The Bank will approve transaction only if there is enough money in your bank account.
n
n
Benefits
n
n
n
n
You can only spend money that you have in the account.
n
You can use the card to withdraw cash from an ATM. Daily limit is MWK 90,000.00
n
You can use your card abroad.
n
Lost card
n
Prevent use of the card by immediately reporting loss to your bank by phoning National Bank of Malawi Call Centre Number 01 831 471 OR 80 000 900 also appearing at the back of the card.
n
n
Using your card abroad
n
Your card will work overseas. Most merchants will ask you to enter your PIN although some may simply ask you to sign the receipt. You must therefore know and memorise your PIN.
n
It is much safer to use your debit card when you are travelling as opposed to carrying cash. Your card will be accepted at more than 18 million places around the world. Simply look out for the Visa sign/ logo.
n
When you use your card abroad, there will be transaction fees charged and these will appear on your bank statement. Transaction fees vary from bank to bank. Daily ATM withdrawal limits also vary from bank to bank and country to country.
Important information
Travelling Abroad
n
Call at your Service Centre to arrange foreign exchange.
n
After completion of all exchange control formalities, your Visa Debit Card will be activated to enable you to access the forex when you are abroad.
Security
n
n
The chip holds your PIN which you will be required to enter into a keypad at the merchants POS terminal or at the ATM.
n
Important hints
n
Please memorise your PIN and destroy slip immediately
n
Never write it down or let anyone else use your card.
n
n
n
n
n
PIN should be entered discreetly and always shield it from view.
21
Card Based
Products
Visa Gold
What is NBM Visa Gold Debit Card?
n
n
n
The Visa Gold Debit card can be used as a means of payment in all shops where the Visa symbol is displayed.
n
n
When paying for your purchase, hand over to the shop assistant your Visa Card instead of cash.
n
n
After checking/ verifying the amount, enter your PIN (personal identification number) discreetly this is the same PIN you use at the ATM.
n
The POS device will then verify the PIN.
n
n
You will be given a receipt for purchases.
n
Benefits
n
n
n
n
n
You can use your card to withdraw cash from an ATM. Daily limit is MWK100,000.00.
n
n
Security
n
n
n
Important hints
n
n
Never write it down or let anyone else use it.
n
n
n
n
n
22
Lost card
n
Prevent use of the Card by immediately reporting loss to your bank by phoning National Bank of Malawi Call Centre Number 01 831 471 or 80 000 900also appearing at the back of the card.
n
n
A replacement card will be issued
n
Your card will work overseas. Most merchants will ask you to enter your PIN although some may simply ask you to sign the receipt. You must therefore know and memorise your PIN.
n
It is much safer to use your debit card when you are travelling as opposed to carrying cash. Your card will be accepted at more than18 million places around the world. Simply look out for the Visa sign/ logo.
n
When you use your card abroad, there will be transaction fees charged and these will appear on your bank statement. Transaction fees vary from bank to bank.
n
Daily ATM withdrawal limits also vary from bank to bank and country to country.
Travelling Abroad
n
n
After completion of all e x c h a n g e c o n t r o l formalities, your Visa Debit card will be activated to enable you access the forex when you are abroad.
Card Based
Products
Visa Platinum
What is NBM Visa Platinum Debit Card?
n
n
n
The Visa Platinum Debit card can be used as a means of payment in all shops where the Visa symbol is displayed.
n
n
n
n
n
The POS device will then verify the PIN .
n
n
n
It is an easy and fast way to pay for goods and services.
No queues!
Benefits
n
n
n
n
n
You can use card to withdraw cash from an ATM. Daily limit is MWK150, 000.00
n
n
Lost card
n
Prevent use of the Card by immediately reporting loss to your bank by phoning National Bank of Malawi Call Centre Number 01 831 471 also appearing at the back of the card.
n
n
n
Your card will work overseas. Most countries will ask you to enter your PIN although some may simply ask you to sign the receipt.
n
You must therefore know and memorise your PIN.
n
It is much safer to use your debit card when you are travelling as opposed to carrying cash. Your card will be accepted at more than18 million places around the world. n
Simply look outfor the Visa sign/ logo.
n
When you use your card abroad, there will be transaction fees charged and these will appear on your bank statement. Transaction fees vary from bank to bank.
n
Daily ATM withdrawal limits also vary from bank to bank and country to country.
Travelling Abroad
n
n
After completion of all exchange control formalities, your Visa Debit card will be activated to enable you access the forex when you are broad.
NOTE: For more Information on the card products, brochures
are available at all service centres.
Security
n
n
n
Important hints
n
n
Never write it down or let anyone else use it.
n
n
n
n
n
23
Personal & Business
Banking Products
Mortgage Finance
Facility/Product and Purpose
n
Mortgage and Home Improvement Loans.
n
To assist customers to purchase, improve existing house, complete a house under construction, buy a plot or construct a house.
Target Market
n
Salaried Employees and Account Holders resident in Malawi
n
Non-Resident Malawians with Foreign Currency Denominated Accounts
n
Foreign Nationals with Permanent Residence
n
Customers with regular income from business
n
Companies, organisations and institutions with sound financial capacity.
Tenor and Terms
n
Up to 15 years for individual borrowers.
n
Up to 7 years for institutions.
Maximum Installment Amount
n
Up to 30% of net monthly pay/income, where customer is staying in a rented house.
n
Up to 35% of net pay / income where the customer is staying in own house.
Security
n
Legal charge or mortgage
n
Security can be different property provided it is roofed and located in areas zoned for city or town status.
Interest Rates, Fees and Charges
Reviewed at Bank’s discretion but currently
n
Base Rate for individual borrower.
n
Base Rate plus 4% for institutions.
n
Legal fees as per standard legal charges
n
Arrangement fees charged as per standard charges booklet.
24
& Home Improvement Loans
Underwriting Requirements
n
Contribution of at least 15% of purchase price.
n
Title deeds in the name of the seller.
n
Remaining lease term not less than 15 years
n
Offer by seller in writing.( Not by agent/third party unless Power of attorney is submitted and held on file.)
n
Letter of undertaking to continue remitting salary to the bank account.
n
Pay slip not more than 30 days old.
n
Copy of Employment contract if applicable.
n
Property to be within areas zoned for city or town status.
n
Valuation by Bank’s recommended valuers, not more than 5 years old.
n
Property being mortgaged to be physically inspected by the Bank.
n
Mortgage Finance Application form completed.
n
Search Certificate from Lands- not more than 3 days old
n
House to be insured with Bank’s Interest Noted (BIN).
Premium paid up to date. House owners and Credit Life Insurance arranged preferably under Bancassurance Scheme.
n
MRA Tax Clearance Certificate and Ground/City rates clearance receipt, also required when creating a transfer of charge.
n
Sanction letter acknowledged by customer.
n
Costs and quotations for the completion and improvement (Home Improvement Loan)
n
Board resolution authorising the company to borrow in case of Limited Companies.
n
A customer is encouraged to take Credit Life Insurance
n
Asset and liability statement
Personal & Business
Banking Products
Personal Vehicle Loans
Facility and Purpose
Personal Vehicle Loans.
Provide finance for purchase of vehicles.
Target Market
Salaried Employees including:
n
Non Resident Malawians with Foreign Currency Denominated Accounts
n
Foreign Nationals with Permanent Residence
n
Repayment Period and Other Terms
n
Up to 36 months for second hand/reconditioned vehicles
n
Up to 48 months for new vehicles.
n
Second hand vehicles of not be more than 5 years old.
n
Reconditioned vehicles of not more than 8years old.
Up to 30% of net pay
Letter of undertaking
n
Pay slip not more than 30 days old
n
Copy of Employment contract if applicable
n
Water/Electricity bills not more than 2 months old
n
Vehicle garage report by dealers or reputable garage if second hand vehicle
n
Vehicle to be physically inspected by Bank Officials n
Valid driver’s license .
n
Vehicle registration certificate in vendor’s name.
n
Vehicle to be comprehensively insured preferably under the Bancassurance scheme.
n
Offer by seller in writing or owner of the vehicle. No agents unless Power of Attorney is held and seen.
n
Sanction letter acknowledged by customer.
n
Motor Vehicle Registration Certificate endorsed with NBM interest before documents sent to legal(if Bill of Sale)
n
Security in place before drawdown
Security
n
Lease or Bill of sale over vehicle.
n
Tradable securities other than shares e.g. Treasury Bills
n
Reviewed at Bank’s discretion but currently:
n
Base Rate plus 4%
n
Arrangement fees as per standard charges booklet
25
Personal Banking
Products
Executive Loans & Overdrafts
Executive Overdrafts
This is a special facility catered for the personal needs of
executives, senior/middle managers and other high earning
individuals in companies, government, parastatals, NGO’s etc.
Borrowers may overdraw their current accounts up to agreed
limits.
Interest charged at a margin above the base lending rate is
calculated on a daily basis and payable in arrears at monthly
rests or part thereof.
Executive Loans
This covers the same clientele as the Executive Overdraft. The
loan is however drawn as a lump sum and is payable at fixed and
periodic amounts (usually monthly). Interest is charged on a daily
basis and payable in arrears, together with monthly loan principal
through the current account.
Both the Executive overdraft and loan are normally repayable
from salary, but special arrangements are made to cater for
special individual’s needs.
26
How will I benefit?
Executive Loans provide you with the much needed finance
to cover the high and special day to day needs of the modern
business executive.
n
Directors of companies
n
Company Executive Managers
n
Company Senior /Middle Managers
n Senior Civil Servants/Parastatal Executives and Middle Managers
n
NGO Executives
n High earning individuals
Personal Banking
Products
an
Lo
For any legally accepted purposes.
Target Market
n Employees of guaranteeing organization
n Beneficiaries do not need to be Bank customers
n Availed to credit worthy and reputable Corporates whose overall risk profile has been analysed and vetted to the Bank’s satisfaction.
Repayment Period
Up to 30 months
n Minimum of Base plus 2% to 4% but in line with pricing of other facilities enjoyed by the employer.
n Arrangement fees charged as per standard charges booklet
n Application submitted by Employer
n The Employer not the Beneficiaries (employees) can negotiate for the facility.
n Full risk analysis of the employer since strength is on the guarantee issued by the employer.
n As determined by the Bank and agreed to by the Employer
n To be deducted at source and remitted to the Bank on monthly basis by employer.
Security
n Employer’s guarantee in Bank’s approved format
n Supported by Board Resolution in line with Legal status of the guarantor
27
Personal Banking
Products
Consumer Loans
Term Loan.
Target Market
Salaried Account holders resident in Malawi including:
n
Non-Resident Malawians with Foreign Currency Denominated Accounts.
n
Foreign Nationals with Permanent Residence.
n
Professionals paid share of the firm’s earnings monthly.
Repayment Period/ General Terms
n
Repayment - up to 30 months.
n
Can be extended to current, savings, deposits and special saver account holders provided accounts held for at least six months without a single dishonoured paper or unauthorized /
excess overdraft.
n
No record of arrears in the past six months.
n
Accounts to record direct regular salary /income for at least 3 months
n
Credit life insurance arranged under Bancassurance Scheme.
n
If on contract maximum repayment period 2 months before expiry of contract.
Letter of Undertaking(LU) that is in line with the Bank’s sample.
n
The LU must be from creditworthy employers whose overall profile especially financial standing and business continuity prospects are deemed fair risk. They should not be blacklisted for dishonoring prior LUs.
n
Undertake to send monthly earnings to applicant’s Bank account until facility is repaid.
n
Be signed by authorised signatories and telephonically confirmed.
n
Confirm no similar undertaking made to other financial institutions.
n
Water/Electricity bills not more than 2 months old.
n
Asset and liability statement with full details of landed property, vehicles and other assets.
n
Copy of Employment contract if on contract.
n
Repayment ability established/ascertained.
n
28
Maximum Amount/ Installments
n
Installment up to 30% of net pay
n
Second consumer loan allowed provided the total monthly installments are within 30% of net monthly income deposited to the account.
n
Loan top ups allowed provided the existing loan has reduced to 50% of the original loan amount and the proposed installment is within 30% of the customer’s net monthly income deposited to the Bank.
Security if required or LU not acceptable
Caution
n
Charge or Legal mortgage over property
n
Bill of sale over vehicle
n
Guarantee of Employer on form NBM SEC 15/15A
n
Treasury Bills
n
Cash
n
Credit Life insurance arranged under the Bancassurance Scheme.
n
Reviewed at Bank’s discretion but currently:
n
Cash secured -Base Rate
n
Near cash (e.g. Treasury Bills) - Base Rate Plus 2%
n
Tangibly secured (property, vehicle)- Base Rate plus 4%
n
Softly Secured (e.g. L/Us, Guarantees) -Base Rate plus 6%
n
Unsecured- Base Rate plus 8%
n
Arrangement fees plus Administration fees - charged to customer as per standard charge booklet
n
Legal fees - As per standard legal charges
Personal Banking
Products
Consumer Loans
29
Personal Banking
Products
Asset Based Finance Loan
Asset Based Finance Loan has been designed to assist high
net worth customers who are financially capable of servicing a
loan and have landed property to offer as security to fulfill their
personal dreams and ambitions by providing them with top
quality financial services in form of medium term loans.
Purpose
Funds used for the purchase of household effects, payment for
education, medical holiday/travel and ancillary expenses.
Maximum Amount
n
Up to 90% of the value of the property
n
Dependent on financial capacity of the borrower
Repayment Plan
Payable by monthly installments
Maximum Repayment Period
60 months
Interest/Pricing
Base rate, currently at 29.75%
Arrangement Fee
Borne by applicant and subject to change at Bank’s discretion
from time to time.
Appraisal Fee and Legal Charges
Appraisal fee and including legal fees to be borne by applicant.
Security
Legal mortgage/charge over the property offered as
security to be created by in house legal department
n
House owners all risks insurance including fire
cover, preferably under Bancassurance Scheme with
Bank’s interest fully noted in the insurance policies
n
Application letter
n
Latest Payslip
n
Letter of Undertaking from employer
n
Utility Bill
n
Title document of the property to be pledged
n
Latest valuation report
n
30
Personal Banking
Products
Personal Overdrafts
Facility/Product
Target Market
Salaried Employee and Account Holder.
n
Resident Malawian.
n
Non - Resident Malawian with Foreign Currency Denominated Accounts.
n
Foreign Nationals with Permanent Residence.
n
Business Customers Borrowing in Personal Capacity.
n
Professional business people with regular income from
a concern with sound business track records.
n
Professionals paid share of the firm’s earnings monthly.
Repayment Period/ General Terms
n
Temporary in nature , not more than one month but other requirements as above apply.
n
Amount availed shall not be more than 50 % the regular monthly income paid directly into the Bank account.
n
As in term loans or overdrafts
n
Overdrafts shall be granted to holders of current accounts only.
n
There should be proof that last salary to the account was deposited within the past 30days and was more than the amount being requested.
n
All other conditions including Letter of undertaking same as in consumer loans unless tangibly secured.
n
Credit life insurance arranged under Bancassurance.
n
LU not applicable but exceptionally considered against evidence of financial soundness of the business and undisputable regular deposits to the account for at least six months.
Maxuimum Amount
Amount not more than 50% of regular monthly income paid into bank account
Security if LU not acceptable
n
Caution, Charge or Legal mortgage over property
n
Bill of sale over vehicle
n
Guarantee of Employer on form NBM SEC 15/15A
n
Tradable securities eg Treasury Bills
n
Cash
n
Cash secured - Base Rate
n
Near cash (eg Treasury Bills) - Base Rate Plus 2%
n
Tangibly secured (property, vehicle)- Base Rate plus 4%
n
Softly Secured (eg L/Us, Guarantees) -Base Rate plus 6%
n
Unsecured- Base Rate plus 8%
n
Arrangement fees plus Administration fees - charged to customer as per standard charge booklet
n
Legal fees - As per standard legal charges
n
n
n
31
Personal Banking
Products
Pay Day Loan
Introduction
National Bank of Malawi is pleased to announce the introduction
of a new loan facility called
“Pay Day Loan”
This loan facility which will be availed to the bank’s customers
and potential ones, mostly salaried employees who require short
term facilities, will assist them with emergencies, travel, medical
expenses, pay for utility bills, luxury, etc. Since this will be a short
term loan, it will be unsecured. This loan product will provide a
convenient platform for customers to access emergency and
quick financial assistance from the Bank.
We believe through the Pay Day Loan facility the bank will build a
long term relationship and loyalty with its customers.
Target / Eligibility
The Pay Day Loan will be available to the Bank’s customers
whose regular monthly income is paid direct into an account
maintained at National Bank Service Centres.
This facility is being extended to customers who hold Current,
Savings and Special Savers accounts and whose salaries
have consistently been remitted to their bank accounts for the
past six months. New account holders will also be eligible for
the facility provided their applications are supported by a Letter
of Undertaking from their employers to remit salaries to their
accounts.
Loan Limit
Pay Day Loan will be offered in bundles which have been
designed to quicken the process and making it easy for the
customers when they come to apply for the loan. The bundles
will be in K10,000.00 lots with K30,000.00 being the minimum
loan amount a customer can get and K500,000.00 maximum.
The bundles will also indicate the redemption amount for the
customer to know on the onset the amount that will be repaid at
the expiry of the loan.
32
Repayment / Accessing Another Loan
Pay Day Loan will be repaid on the next pay day and customers
will be allowed to borrow again immediately after settling the
existing loan. Customers will be allowed to borrow up to 50% of
their regular monthly income deposited into the bank account.
Customers will also have the choice of early redemption of the
loan without any penalty.
Personal Banking
Products
FiestaSave Account
Purpose and Target Market
n To assist customers save money until such time when needed.
n Available to everyone and anyone who love to see their wealth grow.
Account Opening and Requirements
Minimum account opening balance = MK20,000.00
(Malawi Kwacha Twenty Thousand Kwacha Only).
n Account Opening Form
n
*Additional requirements for new customers
Utility Bill
n Identity
n Sketch map for place of residence
n
Operation of the Account
Monthly deposits - at least MK10,000.00 (Malawi Kwacha Ten Thousand Only).
n Deposit through all Bank channels at no fee
n Withdrawal - on quarterly basis [provided the remaining book balance is at least MK20, 000.00(Malawi Kwacha Twenty Thousand Kwacha Only) at any point in time].
n Withdrawals allowed on the counter only.
n
Benefits
High interest rate.
n
Best solution for customer who are saving for a particular event.
n No service fee.
n
33
Personal Banking
Products
BankNet Online
Internet Banking
Freedom Unlimited
BankNet Online is the brand name of National Bank of Malawi’s
Internet banking service. With BankNet Online, you as a National
Bank customer can enjoy around- the-clock, fully-fledged and
unlimited access to your account from any corner of the globe,
as long as you can have access to the Internet.
To log in simply go to the BankNet Online website as follows:
www.banknet.co.mw
Freedom Package
Using BankNet Online, you enjoy a wholesome and unique
package of world-class services, exclusive to National Bank of
Malawi as follows:
n
n
n
n
n
n
n
n
n
n
n
Access your accounts information including balance from anywhere at any time
Manage Online subsidiary or trustee accounts.
Print your accounts statements anytime.
Make inter-account and third party payments
Pay utility bills online and anytime
Establish Fixed Deposit contracts online
Issue various instructions using secure messaging option
Export data to other Windows operating environments such as Excel
Order cheque books
Add and maintain beneficiaries
Effect stop payment on cheques.
Availability
BankNet Online is available to all National Bank of Malawi
account holders so that they can enjoy the best value and banking
services in the market.
Emotional Benefit
Freedom, complete peace of mind and total delight.
Functional Benefits
Convenient, Secure, Fast, Flexible, and value for money.
How to get registered
n
Visit any National Bank Service Centre and complete the BankNet application form. Alternatively you can download the application form from the bank’s website, www.natbank.co.mw. Complete and then drop the form at your nearest National Bank Service Centre
n
All required information must be properly and clearly filled without alterations to avoid delays in registering you
n
Answers to security questions on the application form must be remembered at all times as failure to answer security questions will lead to delayed and unsatisfactory service rendered by the bank’s staff.
34
Security
BankNet Online has the following comprehensive and advanced
security features:
n
Digital certificate and fire walls
n
Unique user identification number
n
Use of password and its attendant protocols
n
The secret: use of a 6 to 10 character alpha numeric secret code by Customers
n
Customers must take note that National Bank of Malawi will never request for confirmation of details from BankNet Online clients.
Requirements to access BankNet Online
n
An account with National Bank of Malawi
n
Internet access.
Why have BankNet Online?
n
The coolest thing in town. The very incarnation of modernity and fashion trendy and ahead of time
n
In touch with your money 24/7 plus 365 around the clock and around the globe
n
Freedom Unlimited and you will simply enjoy peace of mind that makes you relax
n
Outstanding innovation from the people that pioneered banking in Malawi
n
Great Fun, Liberation from having to plan your life around banking hours.
The BankNet Online Big Idea
BankNet Online people are inspired by the idea of being always
and everywhere in touch with their money.
Retail Banking
Products
35
Business Banking
Products
1. Purpose
To assist qualifyinn Small and Medium Enterprises (SMEs) with
working capital, capex finance, short term loans, letters of credit,
guarantees and bonds.
2. Target Market
n Sole proprietorships
n Partnerships
n Limited companies
3. Facilities Offered
a. Overdraft
Period and Repayment
n The overdraft facility may be granted for a maximum of twelve months
n Reductions or repayment terms are discussed with the customer. No stipulated minimum applies. The source of repayment should however be clearly defined. The
overdraft facility is repayable on demand.
Benefits to the customer
n Once arranged the overdraft facility is available immediately and may be used whenever required.
n The facility remains available even when not in use.
b. Loans
n Short term loan repayable up to 24 months
n Medium term loan repayable between 24 and 60 months
n Long term loan repayable between 60 and 120 months
n Reductions or repayment terms are to be discussed with the customer. No stipulated minimum applies.
The drawing and repayment of funds is made in accordance
with a prearranged schedule which is matched to the
borrower’s needs.
n Full repayment of the loan or temporary early reductions may be made at anytime subject to a notice and which must be negotiated with the bank.
n Security of knowing that finance is available for the required period.
n Pre-planned draw downs and repayments facilitate accurate budgeting and disciplined repayments
n
c. Letters of Credit
n Up to 12 months reviewable annually for formalised revolving limits
n Up to 180 days for temporary one-off.
The period may vary as agreed by the parties.
36
n Security
n Guaranteed payment
n Quick and efficient settlement
n Flexibility
d.Guarantee by Bank
n Up to 12 months, reviewable annually for formalised revolving limits.
n One-off facilities period will be determined by the terms of contract and guarantee expiry dates.
n No fixed term is set for a performance bond.
Guarantees may be continuing or for a specified period.
If cash cover is lodged with the Bank under a pledge the client will be paid interest on the investment.
n Enables the client to bid for contracts which call for guarantees.
n Enables the client to purchase fixed property.
n
4. Pricing - Interest, Commission, Fees and other Charges
The products will attract interest, commissions and other fees in
line with the Bank’s tariff booklet on SMEs and legal fees as per
standard legal charges.
5. Underwriting Requirements
The applicants
Application letter with clear amount, purpose and tenor for which facility is required, security proposed and existence of property, stocks, etc.
n Certificate of registration/incorporation.
n Memorandum and Articles of Association, Partnership Deed, constitution and any other founding documents.
n Demonstrate good repayment track record and compliance with terms and conditions on existing or previous facilities with no dishonored paper over 12 months.
n Financial statements.
n Business profile.
n If the applicant has been banking with other financial institutions must provide the Bank with bank statements for at least twelve months.
n
Business Banking
Products
e. Invoice Proceeds Based Finance
It is a short-term financing arrangement extended to an SME for
working capital on the strength of issued invoices.
Qualifying Criteria
n SMEs who have maintained an account with the Bank for at least three months, which has registered acceptable
levels of activity.
n The SME should invoice reputable organizations operating within Malawi, including National Bank of Malawi.
n The SME should Have invoiced or issued certificates of completion to a reputable organization to facilitate interim
payments, under a term contract.
n SMEs with invoices payable in a maximum period of 90 days.
The customer’s request should be supported by copies of invoices or certificates of completion payable in a
maximum period of 90days, issued to a reputable organization on the Bank’s pre approved list.
n The Maximum amount to be availed to the customer is Up to 70% of the Non NBM invoice or certificate of completion and .Up to 80% of the NBM invoice or certificate of completion.
n The customer to execute an assignment of invoice proceeds in favour of the Bank.
n The invoiced organization to formally acknowledge the assignment of invoice proceeds to the Bank.
n
Operation of the Facility
SME submits request for financing under the scheme to the Bank.
n Upon receipt of financing request from an SME, supported by an invoice, the Bank will confirm authenticity of the invoice.
n Once payment of the invoice is ready the Bank will require that the invoiced corporate entity should pay the SME through account held with the Bank.
n The facility is repayable in line with the term of the invoice, up to a maximum of ninety days.
n
37
Vehicle & Asset
Finance
Vehicle & Asset Finance
Facilities offered
a. Finance Lease
National Bank of Malawi through Vehicle and Asset Finance
Section buys the asset chosen by a customer, and allows the
customer to possess and use the asset in return for specific
rental payments over a specific period.
An operating lease is therefore an off balance sheet finance for the Customer (Lessee.)
n
Target Market
The facility is available to qualifying corporate organizations
which:
n
n
n
n
b. Sale & Lease Back
National Bank of Malawi buys back assets at an agreed price
and leases them back to the original owner. This facility is ideal
for converting capital assets into working capital when expanding
your business.
c. Term Loans
This is used as an alternative to a Sale and Lease Back where
monies are advanced with security taken over a property by a
way of legal mortgage or over assets by a way of a Bill of Sale.
d. Revolving Credit Facility
Corporate clients can apply for revolving credit facility, which
once in place can be used to acquire assets on presentation of
invoice. The facility is subject to annual review.
e. Car ownership Scheme
We have developed an innovative car ownership scheme for
those companies wishing to provide their eligible employees
with finance to buy vehicles. Corporates only need to undertake
monthly repayments to us.
f. Operating Lease
Product description
n
In an operating lease the bank purchases the asset and makes a return or profit by renting it out to different users (Customers). The Customer pays a rental to the Bank (Lessor, owner of the asset) for the hire and use of the asset and never owns the asset outright.
38
Are attracted to take maximum cash flow benefit
Are attracted to take tax benefits
Do not need to own the asset
Target lean balance sheet.
Terms and Conditions
What can my business lease?
Any asset of durable and identifiable nature. This includes
equipment, plant, machinery, commercial vehicles, tractors,
business cars, generators, computers, etc.
Can my business qualify for leasing?
If your business is properly established and registered (sole
traders, professional partnerships and companies), you can
qualify for asset finance provided your business can demonstrate
the ability to generate cash to meet rental payments.
How will my Business benefit from National Bank Asset
Finance Section?
n
National Bank of Malawi is the biggest bank and has the capacity to provide finance for all capital assets requirements.
n
Our professional leasing team with unrivalled experience have a better understanding of Malawian business environment in assessing requirements of applicants.
n
Vehicle and Asset Finance Section is easy to contact through any National Bank of Malawi Service Centres which are available all over Malawi.
n
Repayments are flexible and are tailored to suit the cash flow pattern of your business. It could be monthly, quarterly or on a seasonal basis over an agreed time frame.
n
Leasing enables your company to employ conserved working capital profitably.
n
Normally, no other collateral other than the asset that is financed constitutes security
n
Quick decision making to meet expectations.
International Money
Transfer
Moneygram
Moneygram Products
This is an international money transfer service available at all
National Bank of Malawi service centres.
n
The fast, safe way to send and receive money worldwide.
n
Secure, easy, reliable international money transfers
n
No need for bank account for receiving, however one needs an account in order to send money
n
Complimentary 10-word message.
To send money
Fill in a simple send form and show ID if required
n
Hand over the cash and MoneyGram fee
n
Get your security number
n
Give it to the person receiving the money and in just 10 minutes it’s available for collection
n
You can also add a personal touch - a complimentary
10-word message with every transaction.
MoneyFast
To receive money
n
Get your security number from the sender.
n
Take an ID and the security number to any National
n
Bank service centre Fill in a simple receive form and show the ID if required
n
You will be given the money immediately, in Malawi Kwacha.
MoneyGram is available in over 165 countries and at more than 65, 000 locations. Your money is transferred immediately and is ready for collection in just 10 minutes
n
There are no complicated procedure
n
What’s more? - The receiver is paid immediately.
n
n
MoneySafe
Money can be transferred quickly and safely from an extensive
network of over 65,000 quality agents, linked by computer.
Hundreds of thousands of people all over the world already use
the MoneyGram service and trust its reliability and security.
MoneyEasy
Sending and receiving a MoneyGram transfer is so easy. All it
takes is these simple steps:
39
International Money
Transfer
American Express
The American Express International Dollar Card provides
our corporate clients with a method of payment for a range of
services when on a business trip outside the country. It allows
our customers to spend anywhere around the world without the
need to carry cash.
How will I benefit?
• Widely accepted
• Reduces the risks of carrying cash
• Reconciliation of expenses on receipt of statement from American Express.
Who is this product mainly for?
Corporate customers.
How much will it cost me?
• Application fees USD80
• Annual fee: Main applicant - USD100,
Supplementary applicant - USD50
40
Accounts
Accounts
Current Accounts
Savings withdrawal slips are used in case where the ATMs
are not available. A minimum balance of MWK 1000 must be
maintained at all times and interest is paid at the end of the year.
The interest rate is slightly lower than that of the ordinally savings
account. Water and electricity bills can also be paid through the
ATM and Mo626Ice as well as the purchase of recharge mobile
top up units.
Designed for both personal and corporate clients. The
convenience of these accounts is that customers use cheques for
payment of goods and services rather than carrying cash around
whenever they go shopping. What is unique about the National
Bank personal current accounts is the ability for holders to use
the Visa Card to pay utility bills and to purchase recharge airtime
for mobile phones at ATM or through mobile banking (Mo626Ice).
The Visa Card can also be used to pay for services and goods at
various outlets through POS machines.
A monthly service fee is charged on the account as defined in
the bank’s tariff.
Savings Accounts
Mlimi Account
A savings account is open to anyone: be it an adult, a minor, an
organisation or a business enterprise. To open such an account
you simply need to provide a specimen signature or if unable to
sign, a thumbprint impression.
Product Description
Mlimi is an account designed for all farmers. It is an account that
help farmers to receive/deposit agricultural produce proceeds
and save their money for future use.
With the advent of the online system, a service centre may cash
withdrawals for customers of other service centres; provided that
the owner of the account presents the withdrawal slip, visa card,
Valid ID and his/her specimen signature is available online for
verification. Withdraws other than these may only be made at
the service centre where the account is domiciled unless prior
arrangements have been made by the customer to make cash
withdrawals elsewhere. Customers are also issued with Visa
card for withdrawals vi ATM’s, purchase of airtime, payment of
utility bills at the ATMs or through mobile banking (Mo626Ice) and
purchase of goods and services where Point Of Sale machines
are provided.
Benefits to the Farmer
n The account will help farmers to understand the banking world while at the same time realise their financial dreams.
n Farmers will be able to save part of their farm proceeds for future use.
n In as far as clubs are concerned, individual farmers will be able to open their own accounts.
n Yearly account statements will be availed to the customers.
n Notification to customers on produce proceeds credited to their accounts will be via Mo626ice.
Target Market
Clubs and individual farmers
n Small to medium estate owners.
n
Withdrawals in excess of the minimum balance are not permitted.
A minimum balance of K5, 000 must be maintained at all times.
Interest is paid once a year, usually in December.
Special Savers Account
(SS Account)
This account is designed for both working individuals for receiving
their salaries and ordinary customers. To open the account an
employee needs to bring a letter from his/her employer with a
valid ID. The account enables employees to save their money
for future use. However, they have the option of drawing money
as and when needed. Customers are issued with Visa card for
drawing money through the ATMs and purchase of goods and
services where Point Of Sale machines are provided.
Terms and conditions
n All registered individuals, clubs and small to medium estate owners (e.g. tobacco growers) will be eligible to apply for the account. Individual club membwes will also be eligible.
n Account opening minimum balance is K200.
n Individual club members details to be authenticated by either club main committee members or association e.g. NASFAM.
n Individual farmers will be identified by any of the following in line with the Bank’s Know Your Customer (KYC) identification procedures:
n Auction Holdings identity card duly aunthenticated by Auction Holdings Limited.
n A letter from the club having an account with NBM Service Centres or other banks.
n A letter from the association to which they belong.
n Any legally recognised identity e.g. Driver’s Licence, Passport, Voter Registration Certificate, etc.
n Clubs will be identified by any of the following after submission of the club’s constitution/registration document for KYC procedures:
n Auction Holdings identity card duly aunthenticated by Auction Holdings Limited.
n A letter from the association to which they belong.
n Any legally recognised identity e.g. Driver’s Licence, Passport, Voter Registration Certificate, etc.
41
Accounts
Deposits
Fixed Term Deposit
If you want to invest funds that have no urgent use, you can
open a fixed term deposit account. This account has a higher
fixed interest rate, than the other accounts, for a predetermined
period usually of wto, three, six, nine or twelve months. Minimum
balance for this account is MK25,000.
It is a fixed contract and interest is forfeited when a customer
makes withdrawal before maturity date.
How will I benefit?
Interest is paid on maturity and customers may re-invest funds
at the expiry of the fixed priod until such time as the funds are
required. Such accounts may also be used as security in the
event a customer wishes to borrow money from the bank.
Corporate customers
n Personal customers
n
AID Agencies/NGOs
n Small and Medium Enterprises
n Parastatals
n
There are no charges for the use of these accounts.
Short Term Deposit (Call Account)
Short Term Deposits come in two categories:
n
7 Day call
n 30 Day call
42
The Bank expects seven (7) days or thirty (30) days notice
depending on the type of account, prior to any withdrawal of
funds. Should a withdrawal be made without notice, the customer
is penalised on the interest, which could otherwise have accrued
for seven days or thirty days, i.e. interest is forfeited. The minimum
deposit required for these accounts is K50,000.
How will I benefit?
Interest is paid quarterly on these accounts. Any change in interest
rates is advertised in the local press and through displays in our
banking halls. Accounts may be used as security if a customer
wishes to borrow from the Bank.
n
Corporate customers
n Personal customers
n
AID Agencies/NGOs
n Small and Medium Enterprises
n Parastatals
There are no charges.
Account facilities lie at the heart of the bank operations and
National Bank of Malawi offers a broad selection to appeal to all
clients with monies to be taken of or invested. These accounts
are of special value to small business owners. for National Bank
of Mlawi takes great pride in helping its business clients expand
their business.
Accounts
Personal Account Opening Requirements
for Non Resident Malawians
n
n
n
n
n
n
n
n
Completed application form
Copy of Identity – Passport
Two referees – NBM or non NBM Holders OR
Notarized deposition from a Notary Public indicating that the deponent is indeed the person he professes to be.
Sketch map of residence
Utility Bill
Copy of Bank Statements for at least one month
Where the referee is a non NBM account holder – the referee should issue a reference letter
Personal Current Account Opening
Requirements for Resident Malawians
n
n
n
n
n
n
Copy of Identity –Passport/Driving License/MEC
Two referees –NBM Holders or Letter of Introduction from employer
Utility Bill
Minimum net salary of MK40,000.00
Personal Savings Account Opening
n
n
n
n
n
Copy of Identity –Passport/Driving License/MEC ID
Two referees –NBM Holders
Utility Bill
Personal Special Savers Account Opening
n
n
n
n
n
n
Copy of Identity –Passport/ Driving License
Two referees –NBM Holders
Letter of Introduction from employer
Utility Bill
Business / Clubs and Societies
n
n
n
n
n
n
n
n
n
Memorandum and Articles of Association – for limited companies/
Constitution/any other founding document.
Business Registration Certificate
Trust incorporation
Sketch map of location of the business
Sketch map of location of the residence of directors/trustees/partners
Board Resolution supporting the account opening
Utility Bill for business and directors residence
Two referees – NBM account holders
43
Accounts
Student Serve Account
Who is a Special Saver Account for?
This account is for students who are pursuing academic
professions in various Universities and colleges or professional
studies in various Institutions.
The account is converted to a normal savings account, special
saver account or current account depending on the customer’s
choice once he/she starts working after completing studies. A
minimum of K200 must be maintained at all times.
What are the benefits?
The account helps students understand the Banking world while
at the same time realizing their financial dreams.
The account enables parents or guardians to remit/transfer
money to the students account easily, quickly and reliably
through the Banks country wide network.
44
Students will use the accounts for:
Safe keeping of their money
n Easy mobile top ups (Mo626ice)
n Using Visa cards for purchasing goods and services where Point Of Sale machines are located without the hustle of carrying cash which is risky.
n
What is the cost?
There is no cost associated with the account.
n VISA cards are provided free of charge to enable students do banking at times convenient to them.
n
45
Treasury & Investment
Banking Division
Treasury & Investment Banking Division
Forward Exchange Contract
n
n
n
n
A Forward Exchange Contract is a contract between two parties
whereby they commit themselves to exchange a specified amount
of one currency for another at an agreed rate of exchange,
settlement of which takes place on a fixed date in the future.
Who is this facility for?
Importers and those with known commitments such as dividends,
management fees, gratuities, interest and principal repayments
etc, who wish to fix the kwacha value of USD, GBP, ZAR, EUR,
etc.
What are the advantages?
Protection against currency exposure, exchange rate movement, devaluation etc
n No cash flows except on maturity date
n Costing is effective and determined in advance
n In a country like ours, where foreign exchange availability follows seasonal patterns, this becomes a practical hedge.
n
How does it work?
Clients apply for a Forward Exchange Contract facility
n NBM calculates and quotes the forward rate
n Transaction is agreed by telephone, email or fax
n Both parties sign a contract detailing the amount, rate and delivery date
n Exchange of currencies takes place on the contract maturity date
n In the event of cancellation or lack of sufficient funds on the part of the client, the contract shall still be exercised on the maturity date. Simultaneously, the bank shall buy back same amount of foreign currency as contracted at the prevailing spot buying rate.
n
Currency Option
A currency option is the right (but not an obligation) to purchase
or sell an agreed amount of a particular foreign currency at an
agreed rate of exchange, at the expiry of, or during a specified
period of time.
like to buy the Forex at a determined future date
NBM calculates and quotes the option premium
Both parties sign a contract detailing the amount, rate, premium payable and delivery date.
A non-refundable premium is paid when the deal is concluded
Exchange of currencies takes place on or before the agreed date.
Foreign Currency Denominated Accounts (FCDA)
FCDA is a foreign currency account opened and maintained by
local exporters and those entirely or partially funded from external
sources e.g. diplomatic, international and non-governmental
organizations. Malawians living abroad are also allowed to open
such accounts.
Malawians living abroad who would like to open foreign currency
accounts but have no Malawi Kwacha accounts with us need to
appoint attorneys who might be relations or friends to help with
formalities of opening accounts on their behalf.
n Customers who maintain such accounts are protected from exchange rate fluctuations if they make their payments in the same currency of the account they are maintaining.
n Customers can maintain the balances in the account as long as they wish
n Account balances for FCDAs earn interest
n Interest is negotiable.
How does it work?
Clients apply for such an account through their respective service centres.
n Upon requirement satisfaction, the service centre recommends the client to the Treasury and Financial Institutions Division of Head Office who opens the foreign currency account.
n The operation of this account is subject to Reserve Bank of Malawi regulations, which are issued from time to time.
n There is no minimum balance requirement for such accounts.
n
Who is this facility for?
Importers and those with known commitments such as dividends,
management fees, gratuities, interest and principal repayments
etc, who wish to fix the kwacha value of USD, GBP, ZAR, EUR
etc.
FCDA Time Deposits
Protection against currency exposure, exchange rate movements, devaluation, revaluation etc
n Costing is effective and determined in advance
n For importers, in a country like ours, whereby there is a period when foreign exchange is scarce, ensures availability when needed.
Rediscounting Of Treasury Bills Reserve Bank
Of Malawi Bills, Local Registered Stocks
How does it work?
Clients apply for an option
n Clients advise the bank the price at which they would What are the advantages?
n Source of immediate cash in times of cash flow problem
n Source of extra income if there is a change in the yield.
n
n
46
We offer time deposits in foreign currency to our clients. Customers
only need to apply to Treasury and Financial Institutions Division
to open time deposit accounts.
This involves the secondary market in Treasury Bills, RBM Bills
and Local Registered Stocks. The bank rediscounts or purchases
Treasury Bills, RBM Bills and LRS outright.
47
NBM Capital
Markets Limited
NBM Capital is a wholly – owned investment subsidiary of National
Bank. It is registered as an investment management company
with the Registrar of companies under the Companies Act, 1984.
It is authorized to operate as a Portfolio / Investment Manager
through License # ABC issued by the Reserve Bank of Malawi
under the Financial Services Act, 2010. The company has highly
experienced and technical personnel who avail themselves to
offer the following services:
1. Fund management services
n
n
n
n
n
n
n
n
n
n
n
Pension fund management
Corporate treasury or Capital funds
Management of Trust Funds
Corporate finance & advisory services
New capital raise for expansion
Re – capitalization of distressed corporations
Debt re – structuring or review of existing debt
structure
Initial public offering (IPO) at the Stock Exchange
Private wealth management services
Individual persons
Corporations including SMEs
Pension fund management in detail:
n
Our approach is to setup the fund as a stand – alone.
n
The fund operates as an independent legal entity
n
The trustees assume authority and ownership
n
Trustees effectively control the operations of the fund
n
Trustees appoint all the service providers to the fund
n
The fund within well designed service contracts
n
The contracts include performance benchmarks and targets
n
Our approach embraces principles of good corporate governance
n
Overall objective is maximization of investment returns and fund growth
n Thereby, achieve high growth in member benefits
2. Corporate finance and advisory services:
n
n
n
n
n
n
48
Deals with both small and big corporations
Offers expert guidance and solutions to financially distressed companies
Designs financial models to suit individual companies’ capital structure
Alternatively, helps to effectively re – organize their existing debt structure
Recommends, in some cases, re – capitalization of the corporation
Evaluates and executes Initial Public Offerings (IPO) for new cheap capital
3. Short - term cash and treasury
management:
n
n
n
n
n
n
n
n
Offers this service to both individual and corporate clients
Requires a minimum investment placement of MWK300,000.00
Offers contracts under short and long – term
investment horizons
Invests in investments that achieve highly competitive yields
Have flexible terms as we allow partial or full withdrawal at anytime
Charges no penalties for any withdrawal or discontinuance at anytime
Executes clients’ instructions within 24 hours during business days
Pays anywhere within or outside Malawi depending on instructions
Why deal with NBM Capital?
n
n
n
n
n
n
n
n
n
Specialized attention to investment management process.
Highly competent, experienced and technical personnel.
Robust IT platform specifically designed for investment services.
Great degree of security and safety of your investments.
Strong shareholder base that offers undoubted fallback in case of remote eventuality.
Well designed and monitored risk management framework.
Great economies of scale due to large funds under management.
Regular client feedback services that reflects full investment details.
Consultative investment approach that assures accountability and transparency to our clients
Service Fees
Services offered Standard tariff
Mode of payment
Fund management
1% per annum
of market value Quarterly in arrears
Treasury management 10% of income earned
On maturity of placements
Corporate finance Scaled into 3 phases
Negotiable 5% of capital raise
For a full review of our approved tariff, please collect NBM
Capital booklet at 1st Floor, NBM Tower in Blantyre.
NBM Capital
Markets Limited
National Bank Head Office
47
NBM Pension
Administration
Limited
NBM Pension Administration Limited (NBM PAL) is a wholly –
owned subsidiary of National Bank of Malawi specialized in Pension
Administration Services. It is duly licensed by Malawi, Reserve Bank
of Malawi. NBM Pension Administration Limited is both regulated
and supervised Reserve Bank of Malawi. National Bank of Malawi
through its Financial Management Services (FMS Department)
has been offering the pension services to corporate clients since
1971 as a result NBM PAL took over this line of business from this
Department.
The company came into being in order to comply with the directive
issued by the Reserve Bank of Malawi that pension administration
service should be separated from the pension management. The
primary idea of doing this is to enhance good pension governance and
avoid compromise from a single service provider. Pension services
are mainly categorised into two: administration and management/
investment. As alluded to above the administration leg is done by the
NBM PAL whilst the management or investments are in the hands
of NBM Capital Markets Limited, another wholly-owned investment
management subsidiary of the National Bank of Malawi.
The pension administration services that NBM PAL offer are as
follows, but not limited to:
n
n
n
n
n
n
n
n
50
Accurate member database keeping
Member benefits management in liason with Actuaries as case may be.
Training to the Trustees or Management Committee and Scheme Members
Assisting Trustees or Management Committee and Scheme Members on corporate governance issues
Secretarial Services to the Board of Trustees
Assisting in Audit of pension scheme
Updating clients regularly on any new developments for them to make an informed decision.
Submitting reports as agreed in the Service Level Agreement
Our proposed arrangement
NBM PAL offers itself to provide its technical expertise in pension fund
administration services to Pension Schemes. Depending with the
size of the pension fund, our proposed strategy is to set up the fund
as either a stand alone or umbrella. The current proposed threshold
on the classification of the types of pension funds, as directed by the
Reserve Bank of Malawi is as follows:
n
n
Fund value of K100 Million and above but not more than K1 Billion to be administered in a pool whilst managed in an umbrella set up.
Fund value of K1 Billion and above but not more than K2.5 Billion to be administered and managed as a standalone pension fund.
General benefits of the proposed arrangement to the Pension
Scheme
The Trustees or Management Committee may wish to consider the
following benefits of our proposed approach in running the staff
pension fund:
a. Maximization of investment returns
Unlike other players in the market NBM PAL approach in handling
any interests or bonuses is to distribute outright 100% of Investment
Returns. There is nothing like vested and non vested where the
declared bonus is divided into two portions, where one portion is
distributed to the members and another one is being retained in the
stabilization or general reserved account, whose accountability and
mandates are not known to the members of the pension scheme.
b. Training of the Trustees or Fund Management Committee
On regular basis, NBM PAL in conjunction with NBM Capital Markets
Limited, shall be able to conducting trainings to equip Trustees or
Management Committee on the following but not limited to, to ensure
that the pension fund is being administered and managed in the most
transparent manner:
NBM Pension
Administration
Limited
n
n
n
n
n
n
n
Fiduciary roles i.e. Trustees should safeguard interest of members of the Fund.
New directives from the Regulator, Reserve Bank of Malawi
General Trusteeship arrangement of Pension schemes in Malawi.
Good pension fund governance
New pension developments
Operations of pension schemes
Fund investment guidelines
c. Timely settlement of claims
All benefit claims to be settled within 5 working days from the date of
receipt of instructions and all necessary documentations.
d. High levels of communication between NBM PAL and your Pension Scheme
This is designed and delivered to ensure members of the pension
scheme are able to make informed decisions about their retirement
package. This is done by sending the following information
periodically:
n
Individual Benefits Statements on annual or as case may be – MEMBERS CAN ALSO ACCESS THEIR BENEFIT STATEMENTS ONLINE – WEB BASED SYSTEM
n
Management Accounts on quarterly basis
n
Audited Financial Reports on annual basis
n
If need be, Actuarial Reports for any recommendations on the need basis
e. Turnaround times on queries for your Pension Scheme
To ensure that this is implemented, it is recommended as a National
Bank of Malawi’s policy to sign specific Service Level Agreement
suiting individual clients to measure the Bank’s quality of service
in terms of feedbacks to the client. Each query is assigned to a
dedicated member of staff to ensure that it is resolved in the most
professional manner with a less lead time.
f. Comprehensive pension fund governance for compliance with Reserve Bank of Malawi and Malawi Revenue Authority
Depending with the size of the pension fund, NBM PAL will
assist and initiate the setting up of Trustee Deed and Rules for
the Pension Scheme and register with Reserve Bank of Malawi
and Malawi Revenue Authority to ensure that the governance
framework is established at the onset, with clear accountabilities and
responsibilities agreed and made transparent to all stakeholders and
the fund is compliant on the tax issues.
g. Advantage of the Bank’s national wide presence to the members of your Pension Scheme
On special arrangements, benefits payments and attending to any
issues on pension matters can be done at any of the Bank’s 29 Service
Centers or agency scattered country wide. This is very pertinent
especially to the retiring members of staff where their pension can be
collected close to their places of residence in Malawi.
h. Capacity of Software Systems and Data Security
The Bank has invested in a robust and modern system for the
administration of pension schemes to manage pension scheme
membership database for the NBM Pension Administration Limited.
The system is called Pension Administration System (PAS) which
is a cutting edge technology in Fund Administration Services and
is capable of warehousing huge and several pension schemes. Its
capabilities include:
n
n
n
n
n
n
Maintenance of accurate membership
Maintenance of accurate members’ balances.
Safekeeping of members’ details
a. Entry
b. Level of contributions
c. Benefit values etc
Confidentially and security of database through Users’ password.
System automatically generates any bonus/interest accrued to member accounts.
Transparent and reliable transaction through audit trails.
Our investment subsidiary, NBM Capital Markets Limited uses the
T-24 asset & securities modules of the Core Banking system. The
system provides easy and accurate investment information such as
management of investment information, client reporting techniques
and performance calculation techniques. In summary, the system
has the following benefits:
n
Management information systems
n
Report generation software
n
Performance measurement component
Routine fund administration adminisraion activities by NBM
PAL
n
Open separate member’s employer and employee contribution accounts.
n
Reconciliation of member’s employer and employee contribution accounts.
n
Transfer of accrued fund bonuses and interests to scheme members.
n
Settlement of benefit claims within 5 working days.
n
Submission of annual members benefits statements for each active member.
n
Submission of quarterly fund accounts.
n
Facilitation of fund audit exercise.
n
Facilitation of fund actuarial exercise.
Fee structure for pension fund administration and
management services
a. Administration Fees
NBM Pension Administration Limited charges 0.5% of the total
monthly payroll OR a minimum of K15, 000.00 plus 16.5% being Vat
on the actual fee. As per the Pension Act 2010, the administration
fees shall be borne by the employer and are supposed to be paid
when remitting contributions.
Please note that the fees are subject to review every year depending
on the prevailing economic conditions.
b. Investment Management Fees
NBM Capital Market Limited charges 1% per annum of fund value
collected quarterly in arrears. Investment management fees shall be
borne by the fund itself and nothing is being paid from the employer.
Please note that some services will be outsourced as required by the
Pension Act and the ancillary fee relating to such services is met by
the fund .
All investment management fees will have to be approved by the
Trustees before the payment is made.
As NBM PAL, we are more than happy to come at your doorstep
and do formal presentations which will enable you make an informed
decision based on our value addition.
51
Contacts
Head Office
EXECUTIVE
George Partridge
Chief Executive
P.O. Box 945
Blantyre
Tel: 01 820 622
Fax: 01 820 321
Email: [email protected]
WHOLESALE BANKING DIVISION
Harold Jiya
Head of Division
Tel: 01 824 407 / 01 823 806
Cell: 0999 968 188
Fax: 01 822 907
CARDS & e-BANKING DIVISION
Head of Division
William Kaunda
Tel:
Cell: 0888 830 063
Fax: 01 822 158
PERSONAL & BUSINESS BANKING DIVISION
Head of Division
Oswin Kasunda
Tel: 01 823 670 / 01 823 755
Cell: 0888 825 733
Fax: 01 820 549
TREASURY & INVESTMENT BANKING DIVISION
Head of Division
Harry Mukaka
Tel: 01 821 649
Cell: 0999 969 202
Fax: 01 820 464
CORPORATE AFFAIRS
Corporate Affairs Manager
Annie Magola
Tel: 01 824 330 / 01 820 622
Cell: 01 824 796
52
Contacts
Head Office & Service Centres
HEAD OFFICE
(Chief Executive: George Partridge)
P O Box 945, Blantyre,
Telephone: 01 820622, Fax: 01 820321
email: [email protected]
Website:http://www.natbank.co.mw
SWIFT: NBMAMWMW
LILONGWE SERVICE CENTRE
(Manager: George Nyirenda)
P.O Box 123
Lilongwe
Tel: 01757016, Fax: 01752940
SWIFT: NBMAMWMW008
HENDERSON STREET SERVICE CENTRE
(Manager: Jarvis Nkango)
P O Box 102, Blantyre
Telephone: 01 821 000, Fax: 01 824 014
SWIFT: NBMAMWMW001
MZUZU SERVICE CENTRE
(Manager: Hans Muhome)
P.O Box 20
Mzuzu
Tel: 01334147, Fax: 01333467
SWIFT: NBMAMWMW009
VICTORIA AVENUE SERVICE CENTRE
(Manager: Wilson Mulauzi)
P.O. Box 947
Blantyre
Tel: 01820199, Fax: 01820965
SWIFT: NBMAMWMW002
CHICHIRI SERVICE CENTRE
(Manager: Selwyn Mwanza)
P.O. Box 30365
Chichiri
Blantyre 3
Tel: 01870900, Fax: 01871168
SWIFT: NBMAMWMW003
MANGOCHI SERVICE CENTRE
(Manager: Eric Mdala)
P.O Box 43
Mangochi
Tel: 01594322, Fax: 01594595
SWIFT: NBMAMWMW010
KARONGA SERVICE CENTRE
(Manager: Enala Chirwa (Ms))
P.O Box 95
Karonga
Tel : 01362223, Fax: 01362431
SWIFT: NBMAMWMW011
CUSTOMS ROAD SERVICE CENTRE
(Manager: Edith Sokosa (Mrs))
P.O. Box 5045
Limbe
Tel:01640133, Fax: 01644603
SWIFT: NBMAMWMW004
KASUNGU SERVICE CENTRE
(Manager: Thomas Chimkowola)
P.O. Box 228
Kasungu
Tel: 01253224, Fax: 01253692
SWIFT: NBMAMWMW012
ZOMBA SERVICE CENTRE
(Manager: Brian Chirwa)
P.O. Box 13
Zomba
Tel: 01524788, Fax: 01524749
SWIFT: NBMAMWMW006
MULANJE SERVICE CENTRE
(Manager: Patrick Chaika)
P.O Box 19
Mulanje
Tel: 01466288, Fax: 01466406
SWIFT: NBMAMWMW014
CAPITAL CITY SERVICE CENTRE
(Manager: Charles Sawasawa)
P.O. Box 30317
Capital City
Lilongwe 3
Tel: 01770322, Fax: 01774979
SWIFT: NBMAMWMW007
53

Product Catalogue - National Bank of Malawi

Transcription

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