Investrust Bank was a medium-sized financial services provider in Zambia.
The bank was founded in 1996, registering as a corporate entity, receiving a banking license and commencing banking operations during that year.
In the beginning, the institution was privately held and was known as Investrust Merchant Bank Zambia Limited.
In 2002, the bank's name was changed to Investrust Bank Limited.
During 2004, the bank's stock was provisionally listed on the Lusaka Stock Exchange (LUSE) for the first time.
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As of December 2016, Investrust Bank was a medium-sized financial services provider in Zambia.
At the time of its insolvency, Mr. Peter Banda served as non-executive Chairman of the Board of Directors.
On 2nd April, 2024, Investrust bank was declared insolvent.
On July 24, 2024 Investrust Bank Plc was delisted from the Lusaka Securities Exchange (LuSE).
The failures are tied to governance issues, such as fraud and negligence.
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Weak governance structures have led to poor oversight, enabling bad loans to pile up.
Rapid growth without proper governance structures and adequate capital buffers to absorb losses can make banks more vulnerable to economic shocks and lead to the bank collapsing.
Investrust bank failed to meet the requirements that were set by the Bank of Zambia in the preceding years.
Investrust bank could no longer meet its financial obligations.
Indigenous banks folding due to similar issues, Investrust Merchant Bank was undergoing restructuring.
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The bank could not weather economic shocks like the falling copper prices at the time, and the bank could not meet the demands, leading to its liquidation.
A clear pattern is where it is the local banks that suffer the most.
The failure of Investrust shows that the work is not done.
It is important to keep the banking system safe and innovative.
Zambia has not been left behind the in e-banking tide that has simplified the art of banking and made it a pleasure. The country has 17 banks: Access Bank, BancABC, Bank of China, Barclays Bank Zambia, Cavmont Capital Bank, Citibank, Ecobank, Finance Bank, First Alliance Bank, First National Bank, Indo-Zambia Bank, Intermarket Bank, Investrust Bank, Standard Chartered, Stanbic Bank, United Bank for Africa (UBA) and Zanaco.
On the Zambian-owned banks front, Cavmont Capital Bank offers an Account Application online while Investrust has an Online Document Centre that provides useful electronic products in PDF format.
Electronic banking, including mobile and e-banking, has revolutionised the industry in Zambia.
Where banking was confusing, time-consuming and a chore, it has now become a pleasure.
Gone are the days when one had to stand in a line for hours on end just to get a bank statement or balance.
Today, banking flows like clockwork and service is only a click of a computer mouse away.
Mobile banking services have made banking a pleasure by reducing transaction costs, improving payment systems and helping customers avoid time consuming traditional banking services.
The most popular m-banking solution in the country is Xapit introduced by Zanaco, the Rabobank-managed financial institution, a few years ago.
Indeed, the mobile banking craze has spread like wildfire.
Xapit gives the customer the zeal to bank as it enables one to carry out the following functions: balance enquiry, mobile banking transfer, inter-account transfer, airtime top up, bill payments, mini statements and account management.
One can also send messages to one’s bankers.
Xapit is indeed Instant Banking at its best.
“With the mobile phone transactions, the bank was breaking the barriers of traditional banking to make it more convenient, accessible, fun and cheaper,” observed Mizinga Melu, Managing Director of Standard Chartered Bank Zambia Limited.
The British-headquartered bank’s offering (called Phone Banking) allows customers to view their statements, transfer funds between accounts, buy airtime for their mobile phones and pay utility and other bills, enquire about products and services, know the status of issued cheques, check forex rates and fixed deposit rates .
In emerging markets such as Zambia, mobile technology is transforming access to banking services for people living in both rural and urban areas.
Zanaco firmly believes that the unbanked are not unbankable.
It has developed a mobile banking model around the principle that the bank comes to its client, instead of the other way round.
Pan-African mobile service provider Mobile Tecommunication Network (MTN) has already partnered with Standard Chartered Bank to provide mobile banking services in all countries in Africa where MTN and Stanchart have a presence.
Mobile banking is also available for Airtel Zambia’s subscribers who have accounts with Zanaco.
Providing a mobile phone number and account number is the ‘shortest route’ to SMS Banking at Ecobank Zambia, one of the country’s new financial entrants from West Africa.
The service allows the customer to ‘take Ecobank along’ wherever he or she goes to request account balance or statement and view the last three transactions on the account.
Ecobank also provides eAlerts which offer an early warning service via SMS of debits and credits on the account due to cash and cheque withdrawals and deposits, debit card transactions at ATMs, fund transfers and any other transactions that may affect a customer’s account balance.
“Now I can do my banking without visiting my branch just by using my cellphone, thus saving on time and travel expenses,” said Ambrose Saate.
“In the past, banking was a hassle, a time consuming and inconveniencing experience.
Today, banking is something you look forward to!”
Mobile banking offers the opportunity to reach out to the current 3.5m mobile phone users.
Since the launch of telephone banking in late 2008, Zanaco has opened approximately 50,000 mobile banking accounts.
Prior to this, Barclays Bank Zambia used to have Telephone Banking which could be accessed from a landline.
Bank of Zambia (BoZ) Governor Caleb Fundanga said at the country’s first Mobile Banking Conference organised in 2009, that mobile service providers and mobile banking solutions developers need to have in place robust business continuity plans that will ensure minimum disruption of service.
“As we embrace mobile banking, the primary objective of Zambia’s mobile banking framework should be to empower the millions of citizens who do not have access to conventional banking.
The essential spirit of mobile banking should be financial inclusion,” he enthused.
Ecobank says “Our Internet banking solution covers the Ecobank network in 18 countries in West and Central Africa, making it possible for corporates in one country in the region with accounts in other Ecobank affiliates to have access to their various account details.”
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