Page 9 - KZN Business Sense 9.6

ITHALA SHOWS THAT DYNAMITE DOES

COME IN SMALL PACKAGES

frican wisdom often After 100 days in office as the Chief Financial Officer of Ithala State- Although Ithala is a pioneer
encompasses valuable in banking the unbanked,
Ateachings about Owned Company (SOC) Limited, veteran banker MOHAMED GAFOOR with more than 1,5-million
responsible financial management says despite being small, Ithala offers more, especially in rural areas. He savings accounts, and having
and saving money. One well- assisted tens of thousands of
known proverb that encapsulates also looks at the benefits of Ithala becoming a fully licensed bank. homeowners, it does not enjoy
this is: “Do not let your savings sit all the privileges of a fully
idle; use it to create more wealth.” licensed bank.
credit provider, is a 100% owned quality of life. creation for the masses of South
This proverb emphasises A banking licence opens the
the importance of not merely subsidiary of IDFC and has been And due to this outlook, Africans is unattainable and is door for Ithala to contribute
operating under an Exemption
only an exclusive privilege of the
hoarding money but instead Notice from the Banks Act 94 Ithala has managed to gain a elite. to economic development
putting it to work through wise of 1990. The current exemption significant and trusted foothold and improve general welfare
investments or endeavours (both economically and with its An example of Ithala’s of South African across the
that generate more income. It status is a temporary mechanism customers) in the market, at the commitment to promote country. Ithala will be able to
to enable Ithala to apply for and
encourages individuals to be comply with the banking license same time providing financial SMME’s is its unique taxi participate fully in the national
proactive and strategic with their requirements in terms of the aid to those who need it the finance service offering. Many payment system. It would also
savings, recognising that stagnant most. taxi owners wishing to expand bring stability to the bank,
money doesn’t grow. Banks Act. Banking relies heavily on their fleet were either turned as it would not have to keep
Ithala’s physical footprint spans away by commercial banks applying for Exemption Notice
“Little by little, a little becomes trust and integrity. Customers
a lot.” This African proverb the entire province of KwaZulu- trust banks with their money or given high interest rates. extensions.
Natal, and in some rural areas
Working with taxi associations,
underscores the power of we remain the only financial and financial transactions. Ithala is able to offer competitive Obtaining a full banking
consistency in saving. Even small Integrity ensures that banks interest rates to scores of owners licence and becoming a fully-
amounts accumulated over time institution with a physical operate honestly, ethically, fledged bank would also enable
can lead to significant wealth. presence. and transparently, which of new taxis. expansion of Ithala SOC
Our mandate is to provide in turn fosters trust and Whereas bigger banks consider Limited’s footprint beyond
Yet another proverb Save today
for tomorrow’s uncertainties”” access to financial products confidence among customers as too risky the financing of the borders of KZN, thus
property in rural areas, Ithala’s
and the public. Integrity is the
broadening our reach and
and services in areas where
highlights the importance such offerings have previously cornerstone of a trustworthy Rural Home Loan scheme offers impact on communities outside
of preparing for unforeseen
circumstances by setting aside been unavailable. As part of our and reliable banking system. It an opportunity to buy, build, the province.
essential products and services
is not just about following rules;
improve or renovate your own
money for future needs. The Zulu word Ïthala” means
bouquet, through 38 branches in it is about doing what is right property in rural areas.
It is on the bedrock of wanting KwaZulu-Natal, we provide; for customers, society, and the For almost two decades, a safe place or a bundle of
spears/assegais. Ithala is a
to foster prudent financial ■ Transactional Banking: overall financial landscape. Absa Bank enabled Ithala to veritable place of safe-keeping
planning and decision-making
At Ithala, trust and integrity
among ordinary folk that he Transactional Debit Card are reinforced by Ithala’s have access to the national and depicts a constellation of
payment system for clearing
development and empowerment
Accounts
Ithala Development Finance mission to promote development and settlement. Absa has services in readiness for the
Corporation Limited (IDFC) ■ Savings and Investments: across the province, providing given notice that it intends proclaimed battle against
was established 65 years ago as Short Medium and Long-term
a development finance agency, savings and investment a positive impact through job to terminate its sponsorship poverty, unemployment, under-
creation, skills development,
arrangement with Ithala. Ithala
development, and homelessness.
wholly owned by the province products and training, and helping to is in the process of securing What has kept us going all these
of KwaZulu-Natal, mandated to ■ Insurance: Short and Long- increase individual and family another sponsor that will give years despite the challenges is
assist government in promoting term Insurance products for
economic development and personal and business economic security to aid it access to the latest banking delivering on our vision, this is
personal and domestic growth.
also what will take us into the
capabilities that are aligned with
empowerment in the province. ■ Lending: Housing, Vehicle & its business growth ambitions future, to be a financial service
IDFC is regarded as one of the Taxi Finance Its smaller size works in and client needs. In line with provider of choice in creating
key channels through which ■ Public Sector Banking: Ithala’s favour - it tends to regulatory and market conduct wealth and changing people’s
have a deeper understanding
government funding and other Investments and payment / requirements, the transition lives. 
small, medium, and micro disbursements services of the local economy, culture, from the current sponsor to the
enterprise (SMME) support and needs of the community new sponsor will be managed Get more information on Ithala SOC
it serves. This understanding
interventions reach communities. What really sets Ithala apart allows Ithala to tailor its services in a manner that will not Limited www.myithala.co.za or
We are one of the pioneers of from its competitors is the fact compromise clients and the www.myithala.education
SMME development, the first that, in contrast to the major to better suit the specific needs South African financial system.
institution to bank unbanked banks, often referred to as the of rural customers. Our services will continue to be Ithala SOC Limited
communities, and the first to “Big Four” - it serves a large Investment is an important available as normal during the @myithala
establish shopping centres and population of rural, townships vehicle for financial freedom. sponsorship transition period. @myithala
large industrial estates in rural or underserved individuals. Hence, much needed guidance
With its good governance
areas, stimulating development Whereas the bigger banks aim on financial planning coupled and infrastructure, Ithala has @myithala
in the more remote regions of their services towards and cater with a savings culture is embarked on the process to
KwaZulu-Natal. to the upper echelons of the promoted at Ithala. The
urban populace, Ithala focuses on organisation aims to overturn acquire a banking licence which
Ithala SOC Limited, a licensed the people of outlying areas that the perception that wealth will bring many benefits for
financial services and registered are, often, searching for a better ordinary people.

Ithala Taxi finance bulk buying programme that has assisted Ithala CEO, Dr. Thulani Vilakazi with MEC of Economic Ithala Education Platform Programme participants
lot of taxi owners create wealth. Development Tourism and Environmental Affairs at the
opening of Ithala Anton Lembede Branch

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