LOG BOOK DOCUMENTING THINGS LEARNT ON

INDUSTRIAL ATTACHMENT

Week 1 01December-11December 2010

Work started with an introduction to FBC employees from FBC human resources
management team as for their values at FBC they have a culture of calling each other
with first name which I greatly appreciated it because it removes fear of superiors in
such a manner that subordinates will be able to talk with confidence to their superiors
they will feel free to talk. Jane Nhema assisted me to get well accustomed to the other
employees at FBC Centre she was assisted by Daniel and Roy. They told me that during
the course of my attachment I would rotate amongst the various department’s that is e-
commerce and other various departments around the building society where I was
deployed .During the week as students on attachment we had training since we to
market a new product called One Wallet which was done by FBC and Net one.
The training was held at Holiday inn in Harare where the product initiators (net 1) told
us about the product and how it works thus the following are things that I learnt at the
seminar:
 One wallet is a product that enables convenient banking thus it implies that
people will be able to do their banking transaction via the mobile phone that is in
the comfort of their homes. .
 This product will need agents which will be provided mainly by net1they will be
responsible for issuing of new sim cards by the name 128 k memory and those
who previously hold a net1 line it will be replaced by this 128 k memory through
a sim copier such that information on the old sim card will be copied on this line
this only to net1 to net1 sim cards. They will be responsible for marketing this
product

 The other thing that these agencies will be doing is to register clients to one
wallet which is transacting over the mobile phone (m-commerce).

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  The sender must be liable to pay commission for example if you send $100 to
someone she must receive that $100 then deduct the commission on the senders
account.
 A virtual account has to be opened once a client is registered this account is
known as stored value account (SVA) and for it to operate you need to consult
agencies whenever you want to send money or retrieve it using the mobile
phone.

Value proposition of agencies and customers

 Commission per transaction will be charged

 Competitive bank charges
 Internet banking that is 360 degrees view of account
 Complimentary point of sale
 Cash management for agency float
 Access to other banking products like having an overdraft and loans
 Increased traffic in agent business

Technical demonstration

 There are two categories of registration that is:

 Agent registration with an SVA account registered as a managers account
 Customer registration with an SVA account registered as a customer
 Send money
 Receive money
 Top up self
 Top other accounts
 Bill payments

Once a client has been registered with an SVA account and has a 128 k sim memory
they will receive a folder named net1 on the main menu of their mobile phones. When
they have loaded up their mobile phones they will receive a message indicating that
their SVA account have been debited with a certain amount. Having done this the client
is allowed to follow the above technical demonstration choosing what they wish.

Benefits of one wallet

 Easy to use since anyone can text a message

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  Convenience
 Flexibility
 Faster and reliable
 More secure than to send money by bus





Mobile moola (MM)

This is a product that FBC has created and it can be defined by the following equation
(MM=one wallet + FBC account)

It can be noted that one wallet only involves loading money into the mobile phone
through an agent that is the client has to travel to the one wallet sub station in hi/her
area whilst MM you can load money in the comfort of your homes since you have an
account with FBC thus the virtual account can be loaded from the FBC account into the
SVA account (moving money from the bank to one wallet).
The following are benefits that MM can offer to its clients:
 Zero bank charges
 Zero minimum charges
 Free personal accident cover

Stakeholders involved in one wallet and mobile moola product

 FBC Holdings Company

 Net1
 Afro-soft
 Gelmalto
 Trivnet
 Agencies
 Clients
 Community

All the above information was learnt at the seminar held at holiday inn.

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Week 2 13 December – 18December 2010

On the second week I moved from Harare where I was doing my training on one wallet
and the mobile moola product to Mutare where I was starting my attachment mainly
centered on e-commerce that is to implement the marketing strategies on how this
product may be accepted by community.

FBC building society offers the following:

 Savings
 Mortgages
 Money markets
 Investments

My first day at FBC building society (Mutare) also started with orientation to the staff
members within the organisation the managing director Lazarus introduced me to the
members of the organization.

The deputy director Emma helped me with induction at the building society and she
immediately deployed me at the information desk where I was to do the following
during the course of my attachment:

 Accounts opening
 Operating conditions
 Account opening requirements
 Account closure
 Process of account closure

 Handling and collection of Pins and Cards

 Collection of PIN Mailers
 Collection of Cards
 Automated teller machines ATMs
 Cheques
 Characteristics of cheques
 Cheque crossings
 Cheque endorsements
 Stop payments

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  Processing of unpaid cheques
 Returned cheques register
 Cheque withdrawal process
 Bulk stock control card
 Working stock control card
 Real time gross settlement (RTGS)
 Incoming RTGS
 Outgoing RTGS
 Rejected RTGS
 Handling of RTGS queries
 Completed records and books
 Filling
 Loose records and vouchers
 Books
 Recording of completed records and books
 Destruction of old records
 Introduction to teller operation
 Tellers responsibility
 Cash controls
 Cash checks
 Handling of cash
 Teller cash handling limits
 Branch handling limits
 Teller differences
 Teller shortages
 Teller surpluses
 Procedure in the event of a difference
 Interteller transactions
 Cash movements and transportation
 Balancing of cash tellers
 Cash replenishment

 Banking
 Cash carrying vouchers
 Mobile banking

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Week 3 20 December -24 December 2010

The third week started very well because my supervisor Emma Kaguru told me that I
was to open new accounts for our new clients and FBC Building Society has a number
of accounts which can be opened in any currency, they are mainly of a savings nature
and are:
 Savings account
 Multiplier accounts
 Silver banking accounts
 Home saver accounts
 Homeownership accounts
 PUPS accounts

Operating conditions
The following was observed as I was serving the clients:

An initial opening deposit of $10 for opening new accounts the opening deposit is set
and agreed upon by the society. This initial deposit caters for monthly savings fee,
withdrawal fee and the amount of maintaining the customer’s accounts.

As for students mainly those at Mutare polytechnic and other higher and tertiary
education where allowed to open accounts on zero balance implying that they can open
an account without depositing an initial amount.

After opening the accounts clients are suppose to maintain a minimum balance of
$11.50 which is the minimum balance required for all accounts and this amount is set
by the society.

I also informed these clients that there is a maximum withdrawal for personal accounts
that is set by the central bank Reserve Bank of Zimbabwe (RBZ) and the prevailing
policy is that an individual person can withdraw a maximum of $500 and for an amount
above that the person has to seek authority from the manager in charge.

Furthermore all withdrawal for individual accounts must be done using the ATM cards
and all companies’ uses the withdrawal slip. I also notified the clients those not

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transferable crossed cheques will be issued and that local cheques will clear after 7
working days and country cheques after 14 working days.

Account opening requirements

When opening accounts the following documentation is required:

Individuals
As the information officer I advised the following to our clients who wanted to open
savings accounts:

 Metal I.D / valid passport/metal drivers license

 Proof residence (utility bills i.e. electricity, water, phone bills or statement from
another financial institution
 Any deviation from the list must only be approved and authorized by the
manager.
After the individual savings account has been opened I was told to sent an enquiry to
Financial Clearing Bureau (FCB) this clears a person on whether he is a criminal or not
thus I input the following information on the online FCB:
 Surname of individual
 First name
 Date of birth
 ID number
 Residential address
 Business address
 Name of employer
 Full name of spouse

Week 4 & 5 28 December 2010 – 8 January 2011

These two weeks were spent solely on doing new account opening during this course I
opened some company accounts and the following are the documentation that are
required in opening a company account

Companies

 A memorandum of articles of association

 Certificate of incorporation
 CR 14

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  Directors resolution
 Metal IDs for signatories

 Proof of residence for the directors

 Tax certificates where applicable
Directors /signatories/committee members

 Date of birth
 Surname
 Drivers license number
 Passport number
 ID number
 Residential address
 Title
 Date he/she was made director /signatory/committee member

Partnership

Upon opening a partnership account the partners are to produce the following:
 Deed of partnership or agreement
 Partners ID particulars
 Proof of residence for partners

Deceased estates

 Letters of administration
 Certified copy of death certificate
 ID for the deceased estate administrator
 Proof of residence for the administrator

Minors

Children below the age of 16will have to produce the following:

 Guardian’s metal ID, driver’s license or passport

 Proof of residence for guardian
 Birth certificate for the minor
 An FCB clearance

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All in all when an account has been opened but later traced by FCB, it will be
immediately closed.

Account closure

During the course of my attachment my immediate supervisor taught me how to accept

clients who wish to close their accounts. She told me that the branch manager must
approve the account closure and the following must be done:

 The ATM card must be put on HOT status, retrieved and a notice to stop card
transactions done in the system
 The clients must complete a withdrawal slip in order to receive their dues
 The signature must be verified and the client positively identified
 The teller must then go to teller profile and choose accounts close menu
 The menu will automatically calculate interest owing and charges dues and the
resultant balance is what is paid to the client
 The client’s mandates must be pulled out from the active accounts and
annotated obsolete and filed together with other obsolete documents.

Week 6 & 7 10 January -22 January, 2011

Handling and collection of PINs and Cards

As the information officer my other duty was to handle Personal Identification Numbers
(PINs) and Cards and make sure that the clients have collected these items. For
security measures PINs and Cards must be handled by two different personnel at all
branches hence my immediate supervisor told me that I should be the custodian of
PINs and my colleague was made custodian of cards.

When clients came to collect their PINs firstly they where suppose to produce a national
I.D/passport /driver’s license after that a PIN collection register was completed where
clients put their signatures as a proof that they have collected their PINs.

Collection of PIN Mailers

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Upon receiving PIN Mailers I immediately recorded them in my PIN collection register
and I input the following details date, name of client, client’s I.D number, client’s
signature and issuing officer’s signature.

My immediate supervisor informed me that the owner of account is the one that is
allowed to collect the PIN mailer and that under no circumstance should a PIN be
collected by someone else as this comprises security.

The uncollected PINs will be locked up in a lockable cabinet and the keys will kept by
me since I am the PIN mailer custodian.
Collection of cards

In the absence of my colleague upon receipt of the cards I record and sign an
acknowledgement of cards received and the same procedures done on collection of PIN
mailers will be carried out in the respective Cards register.

General rules on PIN mailers and Cards

Both the PIN and Cards are security documents and as such should be kept in a secure
place away from the reach of the eyes of customers.

The registers should be checked once a week by the manager and daily by the
controller.

PIN mailers and cards that remain uncollected after 60 days must be sent to the
Administration department and the operations controller respectively who will facilitate
their destruction.

A destruction certificate is then issued and the returns from the branches are attached
for the Executive / managing director to approve.

Clients who come to collect the PIN mailers and cards after 60 days should be advised
to re-apply at a fee prescribed in FBC building society service charges document.

Week 8 & 9 24 January-5 February 2, 2011

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These two weeks where spent solely doing what I have learnt as the information
officer.

Week 10 & 11 7 February -12 February, 2011

ATMs

ATMs are self service units which provide banking services such as withdrawal
for customers with extra banking hours. The services are accessible by means of
a plastic card with an encoded magnetic strip which will have all clients’ details to
the core system.

Once I open an account it will be mandatory for all personal account holders of
the society to have ATM cards for use within the banking halls and on ATMs. The
cards are produced upon opening of the accounts.
ATM facilities
The ATM has the following facilities for use which I have learnt and experience
since I also hold the ATM card:

 Cash withdrawal-where maximum and minimum amounts are set and

agreed upon by the business and are linked to the type of account held.
 Balance enquiry-where clients may request for their balances from the
ATM and a slip showing the balances is issued by the ATM
 Mini statement – mini statement showing the last 10 transaction
 Pin change – clients wishing to change their PIN can do so on the ATMs
and an advise slip confirming that the pin has been changed will be issued
by the ATM

Lost/ stolen and retained cards

My immediate supervisor informed that the client is suppose to report the theft
or loss of the card immediately to the society either by phoning or walking to
nearest society branch.

Procedure

 The client reports the loss of his/her card to the enquiries clerk

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  The enquiries clerk then request the client to fill in a form which
indemnifies the society against any illegal withdrawals made after
reporting the loss

 The client will be required to complete a card replacement form or new

card is issued for a fee
 The card replacement form must be signed by the customer service officer
(CSO) and authorized by the manager.
 The clerk must also notify card centre immediately to HOT the lost card.

The client has an option to open a new account provided they meet the society’s
criteria for opening new accounts

As soon as the notification for the loss of the card is received the controller must
stop the account in the retail manager system.

Week 12 & 13 14 February – 26 February, 2011

Cheques

The 12th & 14th weeks where hectic as my immediate supervisor taught me
about the cheques that are involved in the banking activities hence here are
some of the things learnt.
A cheque is an unconditional order in writing addressed to the banker signed by
a person making it to pay a definite sum of money to a specified person or his
order or bearer on a specified date.

Characteristics of a cheque

A cheque should have the following characteristics :

 Name of drawee’s bank and branch
 Date
 Amount in words and figures must be the same
 Drawer’s signature
 Magnetic ink character recognition (MICR)line with the following details
I. Cheque number
II. Branch sort code
III. Account number

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 IV. Transaction code

Cheque crossings

These are two parallel transverse lines on the face of the cheque
Cheques are normally crossed to deter the payees from encashing them over the
counter but to deposit them into an account the different types of crossings are
as follows :
I. General crossing – these are two parallel lines with or without the words
“&co” or “not negotiable “
II. Special crossing – these are two parallel lines with the name of the bank
written between the parallel lines.
III. Restrictive crossing – these are two parallel lines with the words “account
payee only” or not transferable or both. This crossing as the name
implies, prohibits the transfer of ownership from the payee to a 3 rd part

The society accepts cheques from clients which are not restrictively crossed as
there is need to deposit the cheques to FBC Building society bankers.

Furthermore my immediate supervisor thought me the procedures of stopping

payment of cheques the following are the procedures on stopping payment of
cheques:

 A client first have to approach the Controller requesting that payment on

the specific cheque be stopped then he or she will be asked to complete
and sign the Notice of stop payment indemnity form
 The CSO will then complete an FBC Bank stop payment form recording all
relevant information
 Only those cheques that are stolen or lost will be indemnified
Currently the use of cheques is very low hence only few cheques are being
received after re

Week 14 & 15 28 February – 12 March, 2011

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During this period I was introduced to another work experience in the
department of electronic money transfer RTGS. It is the transfer of money from
one account to another with the intension of instantaneous value to the receiving
account achieved. The building society is not directly linked on the RTGS profile

and hence we rely on FBC Commercial Bank for our outgoing and incoming RTGS
transfers.

Incoming RTGS

It refers to other financial institutions being able to transfer funds for clients with
accounts at FBC Building society then these funds will be deposited into our
operations accounts held at our headquarters in Harare at least by 0830hrs in
the morning these deposits should be made.

As the RTGS clerk the following was done daily:

 Collection of statement for the previous day and date stamp the same
 Receive and date stamp all RTGS advice forms received from FBC Bank
 The forms are then recorded in a register so that they match the credits
on the statements against the forms received
 Annotation of the check number and account number on the statement
against each credit
 Submission of the statement and forms to the operations controller for
checking and confirmations that all entries have been captured
 The operations controller will then hand over the forms to the batcher
 The batcher tallies up and prepare the summaries for all credits to be
done
 The operations controller then check the prepared summaries and creates
batch header
 The operations captures the entries and returns the summaries to the
controller posting

Outgoing RTGS

This is when clients wishing to transfer funds to other institutions approach us

and the information officer will do the following:
 Handing over the RTGS form to the clients and the clients will complete
the form
 The CSO then approves or disapproves the form

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  The client then goes to the teller point and the client’s account is debited
and the receipts is attached to the form and submitted to the CSO
 The CSO then records in a register all the RTGS

 The CSO then proceeds to appoint a teller to complete the banks RTGS
forms for onward transmission to the bank
 The RTGS forms are then signed by two authorised signatories and send
to the bank by 0930hrs daily
 The bank shall send the reference number for all RTGS and these shall be
recorded in the register

As the information clerk when there are rejected salaries the following
procedures where taken:
 Preparation of record and payments record for the amount
 Highlight on the statement where the where the amount was credited
into the main account
 Prepare and complete an RTGS form for the bank and records in a
register
 The operations controller then creates a batch with ZEW-Electronic funs
transfer
 The RTGS form must be signed by the society’s two authorised
signatories

Rejected RTGS

All rejected RTGS must be returned to the remitting institution within 48 hours of
receipt and are subject to a fee which is determined by the society’s
management in line with the relevant charges.

Week 16, 17, 18 & 19 14 march – 9 April, 2011

During these weeks I repeated the work that I had previously learned at the
information desk.

Week 20, 21, 22 & 23 11 April 9, - 7 may, 2011

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This was the most hectic period on my attachment period because there was a
launch of a product of loans with a higher amount hence a lot of paper work was
done.

Firstly I had to print out the new form loans after that issue them to the clients,
the clients then completes the new forms after that as the information officer I
have to check whether it has been correctly filled.

If they have completely filled their forms I then proceed to print out their bank
statements so that we can deduce that the client is receiving salary at regular
intervals so that we minimise the rate of clients who default their payments.

Having done this I submit these loan application forms to my manager for
further verification. When these loan applicants have been successful we will
deposit their loan amounts in their respective accounts by filling in the batch
entry form for loan advances.

Furthermore, the manager thought me to complete the mortgage batch entry

form where loan advances (ASL) will be batched into the loan account this also
includes interest (E), insurance premium fee (INF), loan establishment fee (INF)
and commitment reversal (CO) and they are calculated using different rates
depending on the loan tenor .

Lastly upon these loans as a team we then batch the repayments amounts for
every month in their respective company names here we will be recovering the
loan amount that we have previously lend to our customers.

Furthermore, as a team we indulged into mass advertising of these personal

loans hence I created some pamphlets to make advertising easier and this
creates awareness to the public. The pamphlets had the following design

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Salary based loans on offer do not hesitate to apply.

Applicable only to those who are PERMANTLY EMPLOYED

TYPE OF LOAN NET SALARY RANGE MAXIMUM LIMIT

Ordinary loans $150 to $299 $1000
Professional loans $300 to $1499 5 times of net salary – maximum $25 000
Executive loans Over $1500 6.5 times of net salary-maximum $25 000
Rates and pricing

 Interest rate - 20 % per annum on loan granted

 Establishment fee - 4.5% of loan limit
 Insurance premium fee - 1.5% of loan limit
 The above charges are levied on acceptance of loan and spread over 24
month’s tenor to make repayments affordable.

NB: clients who have running loans and have paid timeously for at least two(2)
months will be able to apply for the new loans. However the running balance will be
liquidated from the new loans proceeds.

As the information officer I had to dispatch these pamphlets to everyone who came
to the information desk.

Week 24 9may, 2011 -

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This whole week was spent doing what has been learnt on the attachment
period so far like clearing new clients who have opened new accounts among
other things.

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