Stanbic Bank Facilitates Mobile Banking In Zimbabwe | Independent Newspapers Limited
Newsletter subscribe


Stanbic Bank Facilitates Mobile Banking In Zimbabwe

Posted: Sep 16, 2015 at 12:00 am   /   by   /   comments (0)

The Zimbabwean subsidiary of South Africa’s Standard Bank Group has brought new banking technologies to its customers, bridging the data gap between them and other developed nations.

As technology the world over has been moving at an accelerated pace, as a country Zimbabwe has also been evolving.

The banking landscape in particular has altered vastly, as a result of the exponential advancement of technology. Over the last few years, banks in Zimbabwe have gradually moved away from the traditional brick and mortar branches to embrace new technologies that offer convenient, safe and reliable banking solutions to their customers.

World Finance spoke with Solomon Nyanhongo, CFO of Stanbic Bank Zimbabwe, to discuss the country’s current mobile banking situation.

Branches have now been complemented and in some cases replaced by self-service channels such as ATMs, point of sale terminals, and the introduction of internet and mobile banking.

Mobile banking has been facilitated by the growth of Mobile Network Operators (MNOs), whose service now covers the whole country including areas that were previously deemed inaccessible.

MNOs are running mobile wallets with retail and individual agents acting as cash-in (deposit) and cash-out (withdrawal) points. All this has aided the process of financial inclusion, though it is also disruptive to banks that were not offering mobile money as a payments platform.

The country has also seen a significant increase in transaction volumes going through electronic banking channels, as customers now want easier and instant transactions.

There has been a strong growth in ATM usage as Zimbabweans now have confidence in the banking structure after adopting a multi-currency system in 2009. The introduction of self-service channels – which operate 24-hours a day – has helped to enhance the quality of service delivery in the banking industry, as banks strive to remain relevant to the public that have now come to expect quicker, more reliable services.

The road ahead

Failure to contain credit risk, especially during a time when the country is experiencing a slowdown in economic activity, has resulted in the cancellation of some financial institutions’ banking licences.

This slowdown has been manifested in terms of tightening liquidity, increased number of company closures and job losses, as well as declining levels of profitability.