The fastest growing bank in Angola pioneers new services

Launched in 2005, Angola’s international credit bank, Banco BIC, has already established itself as one of the main players in the country’s banking sector. In its first five years of operations, the bank has been characterised by its maturity and boldness. An ambitious expansion strategy has rapidly made Banco BIC one of Angola’s top four banks, with more than 100 branches across the country and a presence in overseas markets.

The bank is involved in a wide array of financial activities, from private banking to retail and corporate services. It is also an active partner in Angola’s reconstruction drive and plays a key role in the gradual diversification of the economy, lending to businesses across a multitude of sectors.

“We are helping the economy by diversifying our credits. Now we are a bank with some $4 billion (£2.5 billion) in deposits. We have $2.2 billion of credit used by customers, with more approved but not yet authorised for real estate projects, hotel projects and so on. We are able to continue lending money and growing, and that is what we are going to do to keep helping the country’s growth. That is why we are expanding across the country,” says Fernando Teles, chairman of the board of Banco BIC. “We have been pioneers. If we open a branch in a certain locality, soon after another bank comes and does the same. We have been the example; we have shown that it’s possible to work in Africa the same as in any other place in the world.”

Banco BIC is quick to implement the latest advances in technology as soon as they are in place to launch more sophisticated services, such as SMS banking, ebanking and credit card facilities. As the country’s ICT infrastructure continues to develop, the bank has even contracted companies in South Africa, Portugal and Mozambique to provide telecom services and stay one step ahead through innovation.

“In Angola, contrary to what some people may think, there are already a lot of people using the internet. In emerging countries, where people have many difficulties, there are more people willing to study and to have access to computers. Adversity makes men; that is, when you have many difficulties, it makes you stronger when you achieve your goals in record time,” says Mr Teles.

“In any country of the world, the banking sector has always progressed very slowly until the availability of debit and credit cards. When a bank begins in Angola, it brings all the very best and most modern in the world, and it brings it all at once. We are progressing rapidly and that is driving Angola to greater growth, faster than expected.

“We have innovated communications in Angola, of course paying a higher price because Vsat communications are more expensive than fibre optics. But today, anyone passing through Angola will see thousands and thousands of kilometres of optical fibre being laid. People are modernising the country very quickly.”

In addition to expansion on home ground, Banco BIC also aims to become an excellent partner for Angolan business abroad. “We move many millions of dollars for HSBC, not only in London but also in New York and Johannesburg,” says Mr Teles. “Our main correspondent is HSBC, followed by American Express, Banco Popular in Spain and Banco BIC in Portugal. We have some good international correspondents and, moreover, it is possible that we will be collaborating with Credit Swiss to expand our international market by placing our capital abroad.”

When Banco BIC launched in Portugal in 2008, it became the first Portuguese bank majority-owned by Angolan shareholders. At the branch opening in Porto, Mr Teles commented that the aim of the bank was to be present “wherever there are more businesspeople with Angolan relations.”

Meanwhile, last October Mr Teles said he had “an optimistic view of the future” regarding the development of Angola’s economy and its financial sector. There is still room for growth in the nation’s financial market, which is visible in Banco BIC’s plans for further expansion and to introduce new products and solutions.

‘We aim to be market leaders within the next six years’

Banco BIC has become one of Angola’s biggest banks in just six years and according to chairman of the board Fernando Teles, its rise is set to continue

Head of one of Angola’s top four banks, Fernando Teles speaks about the ambitions of Banco BIC, the resiliance of the nation’s banking industry, the sector’s evolution and its outlook.

Where do you see Banco BIC in the next five years?

Our ambition is to keep on growing and to help Angola to grow. The country needs banks in the cities. Today, in addition to being in the provincial capital cities, we have 50 branches in Luanda.

Our strategy is to continue our development in this region of Africa, contributing to the country’s development, because Angola needs dynamic banks. For example, when we settled here, within a month we had home banking, allowing our customers to access their accounts online. We got the VISA card after eight months of activity, when VISA usually only accepts banks with a minimum of three years’ activity. I realised that this had to do with our way of operating in the market, our way of doing things, and also from our good reputation in the banks where our management came from.

Furthermore, we are going to expand internationally and continue to explore neighbouring countries: Zaire, Namibia and the Democratic Republic of the Congo. We are already present in Portugal with six branches. Also in Europe, we have a legal services bank operating with the same stockholders and the same image of Banco BIC.

How do you foresee the evolution of the sector?

The banking industry today in Angola is already modern, but there are still some products that do not exist, for example leasing, factoring and other financial products such as funds that are not yet streamlined and introduced in the Angolan market as they should be. We aim to be market leaders within the next six years.

We are already one of the four major banks, which hold 31 per cent of the country’s resources and most of the domestic credit. Of course, there are new banks emerging in the market, but competition is natural. Those with the largest market shares will continue to grow and remain in a prominent position.

‘AFRICA AND ANGOLA NEED, ABOVE ALL, THAT PEOPLE HAVE THE DESIRE TO GET ANGOLAN PARTNERS, IN ORDER TO INCREASE THE NUMBER OF ANGOLAN ENTREPRENEURS’

What was the impact of the international financial crisis on Angola?

We are overcoming the global financial slowdown; we are not concerned about speculation in financial products, like in other countries, because we did not invest in this field. As such, I think Angola is coming through the crisis and will continue to grow.

At the moment, there are plenty of banks in Angola. The banking industry is the engine of the economy through loans and investment promotion. Banks always have clients investing and our work has been to encourage the emergence of new businesspeople and young entrepreneurs. In this way, we are helping Angola to develop very quickly.

How important are foreign collaborations to Angolan business?

Africa and Angola need investors. They need, above all, that people have the desire to get Angolan partners, in order to increase the number of Angolan entrepreneurs. It is normal that in any country its entrepreneurs want to make profits to be able to grow. Angola, with all the difficulties it has been through, does not have a large debt. The debt of Angola, in view of its GDP, can be paid very quickly, and that is why Angola is an attractive country for those who want to grow.

We are available to work with any investor that comes to Angola. If an investor brings 15 per cent or 20 per cent, the bank is ready to support the rest. Therefore, there is no investor who has to bring 100 per cent of the investment: just bring a part and the rest can be obtained at local banks, through the BIC or any other.

Banco BIC is available because we know it is important to attract investors to come and to bring know-how to Angola. If foreign partners come to produce here, it will enable Angolans to learn from them, and that’s good for both parties.