Michael Mbetse, the Managing Director of Status Capital Building Society cuts an interesting figure, from being witty and hardworking to being a calculated risk-taker in the financial space. In this open and frank conversation, he talks to us about resigning from FNB at the age of 35, selling his car, and going back to university to pursue a Degree in Internal Auditing, and why he came back home after enjoying a great career in South Africa working for Standard Bank.
He also details the vision they have as Status Capital Building Society, as well as how tough it was to get the Building Society off the ground during the peak of the COVID-19 pandemic.
Photo Credit:https://scbs.co.sz/
Interview & Article by Ntokozo Nkambule
Q: Could you give us a detailed background of your career, where did it all start, academically and professionally?
A: I started my career in January 1992 with Meridian Bank, this is the first company I ever worked for. I joined straight from college and started there as a Junior Clerk. I then climbed the corporate ladder, and my second role at Meridian Bank was that of a Teller. Long story short, I ended up being a Supervisor at the bank.
I still recall my first engagement on my first day at work with my Boss, the Branch Manager Mr. Sweeney, who told me “You go and work, but what you must know is that whatever you do, it will be discovered. It might take a day, weeks, months, or even years, but rest assured, it will be discovered.” I have lived to witness this happen with quite a number of Bankers, including some senior officers.
Three years later Meridian Bank collapsed and was bought by FNB. By then I was working in the IT department, and during those days, End of Day processing was a mission that could take up many hours at times, and sometimes even up to the next morning especially during month ends, worse was year ends. Upon joining FNB, I got the opportunity to learn quite a lot during the take-over training phase. The IT task fell off since the End of Day processing was reduced to a mere 5-minute task.
Afterward, I joined the WASTE processing Team and soon started reconciling Outstanding Transactions Processing, which were entries that were not successfully processed during the End of Day processing. I wrote a Manual for that process because I was tired of attending to calls for assistance from other branch Officers. I was then promoted to Check Clerk position, then to Supervisor in which I had to run a newly opened Agency branch at the Usuthu Pulp in Bhunya.
Two years later I was then transferred to the Manzini branch as a Supervisor for a bigger branch, where I worked for a year and was then promoted to establish the Waste and Processing Centre as a Senior Supervisor. That entails processing WASTE from all the branches and my main task was to ensure the accuracy of information in and information out. After a while, I discovered that it was quite a boring task. I missed interacting with Customers and attending to daily queries. I requested a transfer which was granted and was stationed at Matsapha Branch as the Branch Controller, third in charge. I had the opportunity to be first in charge when I stood in for the incumbent Branch Manager who was unfortunately on a long sick leave.
After collectively spending 10 years with Meridian Bank and FNB I had gained a vast amount of experience. By then, I also realized that the person I was reporting to, earned a salary five times more than I did, which was unfair since I was a point of reference for all the operations in the bank. I felt that I was doing the job better and had the experience, but the fact that I did not have a Bachelor’s Degree had become my main stumbling block. I only had an N4 certificate in Commerce from Mlumati College and a Certificate in Banking, hence I couldn’t challenge for meaningful positions within the Bank or seek greener pastures elsewhere.
Moreover, pursuing the Banking Course on a part-time basis was proving quite tough since we worked long hours those days and lunch hour was a rare occurrence. The work demand was huge, however, the salary was meagre. This was a wake-up call; I, thus, opted to shrivel down to boy size and embark on a full-time study program. Talk about the will to change at any stage and age, yes, I did it and so can anyone.
Q: How did you eventually get your Internal Auditing qualification?
A: I enrolled for a Course in Internal Auditing at the Tshwane University of Technology (TUT) at the age of thirty-five (35). To get to TUT though, I had to resign first from FNB. I sold my car and used my pension to pay for my tuition fees. The government also afforded me a grant, which assisted me a great deal. The agreement was structured in such a way that, in the first year I would pay for my tuition, the government would pay for the second year, and the third year being paid by both parties equally. Basically, this was a huge sacrifice, but I am glad to say that it paid off.
Q: Interesting. And I believe you also worked in South Africa, how did that come about, and what was the first company you worked for there?
A: After completing my Studies at TUT, I joined Standard Bank South Africa. I was based in Braamfontein, Simmonds Street, and later Sandton, Johannesburg. I worked in the International, Foreign Exchange Division, first in the Inward and later in the Outward department. In essence, my job was to first advise the beneficiaries of the funds received from their South African spouses or relatives working overseas and find out what the money being transferred to the country was for. These funds were mostly in foreign currency so converting them to the local currency was dependent on a good or satisfactory prevailing rate.
The most interesting part of my job was the need to understand the prevailing economic conditions and underlying factors that may influence some changes in the exchange rate either for or against the local currency. It entailed me advising customers on the right time to exchange their currencies. This meant that I had to read extensively, every day, I would buy the Star Newspaper to read about the latest news, interest rates, and other economic indicators so that I would correctly advise customers.
This was a very taxing job because I had to be at my workstation to process inward funds for those who wanted instant conversion or come back to give an instruction in the case of those who had opted for a temporal hold whilst speculating on the exchange rates. A slight delay and a change in the exchange rate in my absence translated to a loss for the customer and a liability on our part – hence I had to spend breakfast, lunch, and sometimes supper at my desk. Due to this, I developed a very sharp pain in my back which needed me to seek acupuncture treatment to relieve the pain.
Q: When and why did you decide to come back to Eswatini, when you were doing so well in South Africa?
A: It was purely a personal decision. To be honest, South Africa was never really for me. I enjoyed my work, got exposure, and grew a lot, but it was just not for me. The plan was always to come back home after I had finished my academic qualifications. It’s a decision I do not regret to this day.
Q: When you got back to Eswatini what was the plan?
A: The plan was to start a business. I was going to start a company with a friend of mine, but unfortunately, he got really sick and was bedridden at that point. This is when I changed my strategy and looked for a job. Fortunately, the Swaziland Building Society (SBS) had advertised a job for a Branch Controller. I applied and got the job. The position was for a branch in Manzini, but I was subsequently transferred to Mbabane. I spent thirteen years at SBS, and one of my career highlights at the Society was my role in the establishment of the Siteki branch.
Q: You then moved to Status Capital Building Society, what motivated you to join a relatively new financial institution?
A: The decision was purely based on growth. I was running a branch at the SBS. Yet, here, the position was for a General Manager, then. In fact, I overstayed in my former position, thirteen years in one position isn’t healthy.
Most importantly, I have always believed in myself and had a vision of becoming a Chief Executive Officer, even when I wasn’t. But I knew that one day, I would be one. This belief influenced the way I dressed and how I interacted with my colleagues. I strongly believe that sometimes in life one has to fake it until you make it.
In the back of my mind, I also knew that fine feathers do not necessarily make a fine bird, so I embarked on furthering my studies through part-time blocks in Johannesburg with MANCOSA and graduated with a Post-graduate Diploma in Business Management and later acquired a Master’s Degree in Business Administration (MBA).
Q: There have also been questions about the ownership of Status Capital Building Society (SCBS), could you posit clarity on this issue, who owns the Society?
A: A Building Society is a Mutual Bank and thus belongs to its Members. The founding Members, a minimum of seven, contribute a capital sum of a minimum of E1 000 000.00 (One Million Emalangeni) and a E10 000.00 (Ten thousand Emalangeni) for the license. These founding Members form the first Board of Directors for a certain duly confirmed at the first AGM.
Henceforth, the Board of Members is then nominated 14 days before the next AGM in which they make a presentation, and then they are voted into the Board as Directors for a period of 3 years.
I appreciate this opportunity to clarify the rumours swirling around on how we were founded, and the ownership. Yes, the institution has founding members, but as per the Building Society Act, those founding members have limited powers, as the institution belongs to all members. This is where and how a building society differs from a commercial bank. The Society is fully managed in Eswatini and the Controlling Officers are currently the MD, the CFO, the Financial Accountant, and the Senior Supervisor. This will extend to the Branch Managers in due course, the normal way Building Societies and Banks operate.
Clearly, this unfortunate perception sowed doubts in the minds of some existing Members and prospective Members hence regrettably since it has deprived many prospects to come on board and partake in the returns on investments. The investment rates are quite lucrative these days, unfortunately, we don’t know for how long thus such opportunities are lost amidst these unfounded rumours.
Q: Considering that this is your first role as the Managing Director (MD) of any company, how have you found it?
A: Well, it has not been easy. The fact that we were established during the peak of the COVID-19 pandemic made the task more arduous. We had to build the strategy from the ground up and with the help of our assembled staff, management, and Board of Directors we managed to overcome challenging times- Not easy but worth the trouble. Our Sales Consultants played a pivotal role in keeping us on track and in alignment with our strategic objectives to push closer to our target.
Q: Tell us about your key products as Status Capital Building Society?
A: As it stands products that we provide are classified into two; investments and loans. Under investments, we have Fixed Deposits, Fixed Period Shares, Likusasa Fixed Deposit Account, and Permanent Shares.
Under Loans, we have Ingcamu Loan, which is only granted to our Members. We also provide Purchase Order Financing which is available to all Clients who meet the terms and conditions thereto.
The Mortgage loan, called Sakhiwo, is available to any Client, terms, and conditions apply. In terms of our mortgage lending business, that is an area we will focus on as the core business of a Building Society. We have set our processes on point to ensure that we assist customers, as well as our members.
Q: How big is the market for building societies in the country?
A: The market is quite huge. As a matter of fact, I believe we can have a number of building societies in the country. There is plenty of room for another one. One of the biggest advantages of building societies is that they play a key role in the development of any community. As stated earlier, a building society belongs to the members, which means it is developmental in nature. The growth of the sector is also very important because it will provide options and variety for members.
Q: What is your vision as SCBS?
A: We do not want to be a traditional building society, as much as we will always abide by the Building Society’s Act, we want to be innovative and introduce better ways to deliver value to our Members. We also want to grow exponentially, and we have a firm belief in collaboration more than the competition approach. We are looking forward to forging synergies where possible. Our envisioned collaborations will not only be with banks but with Fintech in the country and outside.
We want our Members to benefit and pass on their investments’ legacies to their generations through our Gold Permanent and Platinum Shares product. These types of Shares are not redeemed, but only transferable. This means an eternal dividend payout, as long as the Society is profitable, and capable of, through and through. No doubt, it is a matter of time.
IB: Thank you very much for your time MD.
You are most welcome.
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