With the Cash crisis prevailing in the country, a Zimbabwean member of the Nedbank Group, MBCA in its recently published full-year results for the year ended 31 December 2017, reported that the bank made serious upgrades to its systems to ensure stability and to meet the increased transactional volumes especially on card-based channels which grew by 400% against the same period of the prior year.
MBCA managed to increase its Point of Sale (POS) machines from 26 to 1605 across the nation, which also contributed an increase of POS population to 50,418 from 44,805 as reported in the National Payment System Q3-2017. The bank also introduced a Mobile Banking App which was made to integrate with mobile network platform due to the increased number of people who are relying on mobile banking. According to Equity Axis, a financial research firm, in a recently published note said, ‘’ The growth levels being presently experienced in non-interest income line across industry will sure moderate as full adoption of electronic platforms filters, but cross usage of different banks and other providers’ platforms will likely remain on the rise and only banks committing to increased ICT investments will emerge as long terms market leaders. ‘’
“Plans are underway to replace the core banking system and internet banking system as well as launching the Visa/Master Card acquiring solution in order to continue meeting the changing demands of customers in 2018,” said The Managing Director, Dr C. C Jinya.
The Bank is optimistic that their clients in the current year will enter in a new level of banking and will see money differently.
The bank reported firm results with Profit After Tax (PAT) up 40% at $7.89 million against $5.65 million of the prior year which it attributed to the sharp rise in operating profit. Equity Axis reported that the bank remained disciplined under the guidance of its SA based parent. The bank went on to say that the discipline relates to management of quality of loans which has resultantly ensured achievement of superior earnings, especially considering that most of the bank’s income is funded.
The banking industry in the previous decade has seen most banks migrating from paper-based solutions to a system based with every bank now having either internet banking or a mobile application. Integration of mobile money operators with banks has also propelled the ease of banking in Zimbabwe a nation that has seriously suffered cash shortages. It is our view that MBCA which is rebranding to Nedbank is in line with tech industrial developments which may bring a lasting and enjoyable solution to the final user. More investments in the bank’s technology are going to determine the future of the bank going forward taking cognisance of the available competition emanating from other banks.