ZIMBABWE’S banking sector is set to witness fundamental changes in the near future following a surge in digital banking initiatives in various markets across the world.
Digital banking, which strives for convenience in a fast-paced world, enables customers to potentially manage all of their finances from their smartphone and other online channels including payments, investments, spending analytics, and more.
Governor of the Reserve Bank of Zimbabwe, John Mangudya.
Global Renaissance Investment (GRI) chief executive Ngoni Dzirutwe said there are massive opportunities for traditional banks willing to take the lead and digitally transform their business.
“There’s no doubt that all banks in Zimbabwe recognise the importance of digital banking in their growth strategy. And it is now important for traditional banks to bridge the gap between the financial services and technology sectors with an integrated system that responds to clients’ needs in a short period of time and in a far more seamless and accessible way,” he said.
This comes as TymeBank, South Africa’s first digital bank, is disrupting the financial services sector with its unique, personalised customer service. Since its launch in 2018, the bank has seen its customers increasing from 100 000 to over three million in three years.
The purely digital financial institution initially partnered with supermarket chains Pick n Pay and Boxer, which gave it access to 800 stores and allowed them to install real-time biometric recognition kiosks that customers could visit to open a bank account.
With just their identity number and no additional paperwork, the customer is issued with a personalised, activated Visa debit card within five minutes.
In Zimbabwe, banks are also moving towards digital banking and Reserve Bank of Zimbabwe governor John Mangudya said he was monitoring developments in the financial sector with a view to improving banking in the country.
“The bank is cognisant of the speed at which financial technology is evolving globally and has taken a proactive approach to ensure financial innovation does not destabilise Zimbabwe’s financial system. To this effect, the bank formed a fintech unit responsible for researching and monitoring fintech developments in the country,” he said.
To foster responsible innovation, the central bank established a Regulatory Sandbox in March 2021, which provides a platform for testing new financial innovations in a regulated environment before the technology is ushered to the market.
Since the launch of the Sandbox in March 2021, the reserve bank has witnessed 58 fintech registrations on the online portal and an additional 14 applications at various stages. In addition, about 859 unique visitors from 45 countries including Zimbabwe have also visited the platform to date.
To gauge Zimbabwe’s readiness to embrace the digital banking concept, GRI will on September 2, 2021 host an online digital indaba with top bankers, ICT experts, monetary authorities and other government departments which will be officially opened by ICT minister Jenfan Muswere.
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