Agribank to Upgrade Core Banking Systems
Zimbabwe’s agricultural development bank AGRIBANK is in the process of developing a core banking system that is set to improve service delivery to its customers before the end of this year, an inside source has revealed.
Stability of the banking systems has in the recent past become critical for the survival of banks with an influx of high volume and low value transactions leading cash transactions in the current banking environment.
Currently in the Zimbabwean economy, electronic Payment systems have taken the lead over monetary transactions with 96 percent of Payment transactions being conducted through plastic, internet banking or mobile money.
Although the current culture of using electronic money came as a result of cash shortages in Zimbabwe, the advent of electronic payment systems has put Zimbabwe on the top list of other global countries who are struggling to establish cashless societies where all payments will be conducted using soft money.
In his presentation of the Monetary Policy Statement in February the Reserve Bank of Zimbabwe governor, Dr John Mangudya stated that the central bank was encouraged by the usage of electronic transactions and mobile money by the banking public.
The central bank states that mobile transactions were phenomenal and contributed to the bulk of payment streams in 2017 in terms of volume. The bank says 754 Million out of 1 billion transactions were mobile-centered.
Whilst he was presenting results for FY18 in Harare on Tuesday, AGRIBANK’s Chief Executive Officer Sam Malaba stated that the Bank would in an effort to enhance operational efficiencies, soon move to the latest software.
Malaba said the Bank would soon be migrating to Termenos R18 or T24 versions that makes use of Modern Arrangement Architecture.
The project will also move to a second phase which involves the implementation of new additional modules such as IFRS 9, insight for the management information system, internet banking, anti-money laundering, loans origination, and document imaging, said Malaba.
IFRS 9 is an International Financial Reporting Standard promulgated by the International Accounting Standards Board (IASB). It addresses the accounting for financial instruments.
Malaba further said AGRIBANK has successfully managed to make achievements in leveraging technology to enhance efficiency in operations, lower service costs and customer convenience and experience.
In order to increase Agribank’s global footprints in the payments market, the Bank is soon to introduce pre-paid MasterCard and Visa services. This was as a result of the realization that the use of ICT services such as mobile and internet banking and other e-banking platforms such as Point of Sale (POS) has grown excessively globally.
Malaba finally concluded by saying that AGRIBANK is also in strategic partnerships with international monetary institutions like Mukuru and Western Union