Fortune News | Sep 19,2020
Mar 30 , 2019
By BERHANE HAILEMARIAM ( FORTUNE STAFF WRITER )
Abay Bank has launched a service specifically designated for charities, the first of its kind in the country.
The Charities Savings Account Service was launched at the Intercontinental Addis Hotel in the presence of representatives from governmental and non-governmental donor organisations on March 19, 2019.
The savings account could be opened by individuals or entities, or for children and the sick by donors, which would be managed by their parents or legal representatives. The Bank provides an eight percent interest rate for charities’ savings accounts, a percentage point higher than the Bank’s normal deposit rate.
“The bank aims to expand its customer base and serve humanitarian organisations and individuals,” said Belete Dagnew, vice president of corporate service at the Bank, which has 185 branches all over the country and serves over a million account holders.
The savings account requires a minimum deposit of 60,000 Br for donor individuals and 100,000 Br for organisations, which will be held as a block account. After a year, customers can start donating from the account to an organisation or individual of their choice.
The Bank has also arranged an option that enables donors to increase interest rates based on the amount of deposits they are willing to make.
Donor organisations have raised their concerns on the implementation of the service, arguing that they run project-based donation programs and that they may find it hard to open block accounts.
But Adugna Abebe, branch operation director of the almost decade-old Bank, which had 4,080 shareholders and a paid-up capital of 1.3 billion Br at the end of last fiscal year, says that the assessment conducted by the bank shows that most organisations have enough working capital to gain from the service.
“But we are flexible and willing to adjust based on the feedback we get from the customers,” he said.
Currently, Abay, which reported a 66pc rise in its net profits to 317 million Br during the last fiscal year, is providing five basic products that incorporate more than 17 services within them.
Banking experts appreciate the new product, arguing that this shows the financial institutions’ competitiveness and creativity to attract more customers and increase their profitability.
The service would encourage people who wish to help others but do not have access to the organisations or information concerning where the people in need of the aid are, according to Habib Mohammed, a financial expert with a decade and a half of experience in the sector.
“As most of the charity organisations are generating hard currency, it could also be a good source for the Bank and the nation,” he said.
PUBLISHED ON
Mar 30,2019 [ VOL
19 , NO
987]
Fortune News | Sep 19,2020
Fortune News | Nov 30,2019
Radar | May 14,2022
Radar | Dec 07,2019
Radar | Jun 11,2022
Fortune News | Jan 22,2022
Fortune News | Mar 16,2019
Radar | Sep 10,2022
Fortune News | Apr 02,2022
Featured | Jul 13,2019
Dec 24 , 2022
Biniam Mikru heads the department of cabinet affairs under Mayor Adanech Abiebie. But...
Jul 2 , 2022 . By RUTH TAYE
On a rainy afternoon last week, a coffee processing facility in the capital's Akaki-Qality District was abuzz with activ...
Nov 27 , 2021
Against my will, I have witnessed the most terrible defeat of reason and the most sa...
Nov 13 , 2021
Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...
Sep 30 , 2023
The recent gathering by the leadership - and the rank and file - of the Prosperity Pa...
Sep 23 , 2023
Ethiopia's contemporary political leaders and the policy wonks under their command ha...
Sep 16 , 2023
The Ethiopian economic narrative oscillates between pockets of resilience and signifi...
Sep 10 , 2023
Earlier this Ethiopian fiscal year, the heralding of a peace deal became synonymous w...
Loading your updates...