Digitisation new battleground for companies
HARARE – FBC has said that the adoption of digital payment platforms presents the best opportunity for financial services providers in the face of the current economy where foreign currency and cash shortages are prevailing.
Addressing analysts at the presentation of the Group’s half year financial results for the 6 months period to June 2018, FBC, CEO, John Mushayavanhu noted that the surge in the volume and value of transactions processed through the national payment systems was key to the overall performance of the Group where a total profit of $14.8 million was achieved, a 58 percent increase from the prior period total of $9.6 million.
Mr Mushayavanhu highlighted the massive jump in the volume of transactions particularly in the Point of sale, mobile and Internet banking sectors and has called upon institutions to adopt the digital way of doing business.
“Looking at the payment space you find that in volume terms, there is only been a minor increase in RTGS in terms of number of transactions, but if you look at what has happened to point of sale, 69 percent increase, and if you look at what has happened in the mobile space, 672 percent increase and if you look again at what has happened in the internet space, 103 percent.” he said.
“This has impacted on our business but more importantly, what it is telling you is that as an institution if you are not going to adopt the digital way of business, you could easily be out of business.”
Mr Mushayavanhu said the significant increase in transactional volumes was supported by the Group’s efforts to accelerate the deployment of point of sale machines as well as the success of Instant Card Product.
Other financial services providers have also highlighted the positive impact electronic transactions has had on their business operations.
Old Mutual limited recently announced that as a result of improved electronic transfers, the Group recorded an increase in fee, commission and income of up to $42.4 million during the half year period from $34.6 million recorded in the prior, which is an increase of 23 percent.
As a result of the group also announced its commitment to continue digital expansion.
The growth in alternative platforms use in banking has surged since the beginning of cash crisis a few years ago and financial services providers are trying to capitalise on this fast-moving development to widen their capital base as well as offer flexibility to their clients.