Transnational convenience guise in economic melt down


Digital personalised Banking has been considered convenient for users but it is a pretext in crushing the locus of the national economics.

Since the introduction of RTGS and bond notes the business sector has seen a drastic change in the state of the country’s inflation data base.


To try and counter this economic challenge and having experienced large sums of e-Banking transfers by individual accounts over the first and second quarter of 2020 ZimSwitch downwardly reviewed the monthly and daily ZipIt limit to a $100,000 and $3,000 Zimbabwean Dollars respectively.

With the above policy having been implemented and projecting the 2020 E-Banking systems behaviour it is highly likely that access points payment systems increased by more than 5% by 2019 will steeply rise in 2020.

Banks like Steward Bank and FBC have informed its customers that they should resort to digital platforms for services as no more paperwork will be done in local branches.

The above might seems like a convenience centred service but it tends to be an alarming economic status scare and might trigger a complete twist due to the country’s inflationary environment.

Background information shows that National Payment System report on the behaviour of banks access points between 2018 and 2019 shows a rapid increase by more than 5% in 2019 compared to 2018.

With the advent of more mobile banking applications from the period of 2018 to 2019, mobile Bank Subscribers increased by 7%. This indicates reduced human interference in banks and more speed execution for them to make transaction from anywhere.

Shortage of hard cash led to the behaviour of ATMs reduce to a negative -2% thus by 551 in 2018 to 542 in 2019.

POS services increased by 21% .Through business and internet surveys the inaccessible and limited bond notes operation fostered more businesses from SMEs to the formal sector to adjust to the use of POS machines.

There was a large injection on the E-banking sector as subscriptions went up by 18% from 353,103 in 2018 to 415,901 by 2019.The inconveniencing systems with unavailability of online bank service networks in banks directed to people doing their banking transactions electronically. Due lack of disposable income micro-finance institutions provided funding to high-risk borrowers with merchant and commercial banks offering online loans and investments for instance Kashagi Loans and as well as servicing households in their needs respectively.

Debit Cards increased by 19% in 2019 as cash became scarce hence more payment systems and points of service opted for those as a requisite in purchasing goods or transacting for other essentials.

The financial performance from 2018 to 2019 was far from satisfactory as the inflation indicators kept on increasing with increased and crunched liquidity from lack of generating foreign currency through non investment injection.


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