Financial service providers shifts more focus to digital and electronic platforms

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HARARE – As the country continues to face cash shortages, banks and other financial service providers have moved to improve electronic and digital systems as the alternative to a traditional banking system.

Digital banking, it is the digitisation (or moving online) of all the traditional banking activities and programs that historically were only available to customers when physically inside of a bank branch.

This includes activities like money deposits, withdrawals, and transfers; checking or saving account management; applying for financial products; loan management and bill payments.

Digital or electronic banking offers an array of advantages to the service providers. These include lowering operating costs, and the dumping of legacy systems.

Benefits to customer include improved services and product offerings such as a 24/7 banking service available through your mobile, pc or kiosk branch.

Nedbank Zimbabwe Limited recently presented financial statement for the half year ended June 30, 2018 and one key note is that the group attributed its ‘strong performance’ among other initiatives to the 271% increase of Point of Sale (POS) machines which led to a rise in electronic banking platform transactions.

Nedbank reported a 61% percent increase in total profit of $4.37 million from $2.71 million achieved in the same period last year. Revenue increased by 33% from $8.65 million to $11.48 million on a year on year basis.

Nedbank managing director, Charity Jinya said that the group has started a POS campaign to enhance POS awareness.

“The objective being to increase the deployment and usage of Nedbank Zimbabwe POS machines and provide a competitive service to our customers.

Elsewhere, ZB Financial Holdings Limited (ZBFH), during a presentation of its half year financial report in the capital on Thursday, highlighted that the group will prioritise upgrading its digital and electronic payment platforms in order to pace up with the rising volume of transactions processed through national payment systems (Mobile, POS, RTGS, Cheque, ATMS).

Reserve Bank of Zimbabwe statistics show that NPS volumes are skewed towards mobile banking accounting for about 84% followed by POS at around 15%.

ZBFH C.E, Ronald Mutandagayi said that the group will invest in expanding the number of its POS machines across the country as most transactions are now happening on mobile and digital platform.

The Zimbabwean people have quickly moved to embrace digital and electronic banking platforms following the harsh realisation that the cash shortages will persist for an indefinite period. Financial service providers now face the challenge to meet this ever growing demand, hence, the need to upgrade their systems so as to offer better service and ensure convenience in the interest of both parties.

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