Mishma Chakanyuka, Staff Writer 
ZIMBABWE’S banking sector is aiming at the unbanked population, launching a strategic push towards financial inclusion through low-cost services and digital solutions.
This initiative comes amid rising criticism of bank charges and a central bank keen on boosting financial inclusion.
Bankers Association of Zimbabwe chief executive, Fanwell Mutogo, outlined the industry’s focus on expanding access to financial services.
“Increased use of bank cards, digital platforms, and cashless payments will be prioritized,” he told The Financial Gazette recently, citing a Monetary Policy Committee resolution encouraging “no-frills” accounts.
This move follows public outcry over bank fees, raising concerns about affordability and the appeal of formal financial services.
The central bank, eager to incentivise foreign exchange flows through the formal system, is pressuring the sector to reduce fees.
However, Mutogo defended current charges, citing operational and capital costs associated with service provision.
Despite the fee debate, official figures paint a positive picture.
Foreign currency deposits have skyrocketed from $300 million in 2018 to a staggering $16 billion by September 2023.
The reserve bank expects the banking sector to remain resilient, playing a crucial intermediary role.
“Banks must continuously evolve and build financial and operational resilience,” the apex bank in a recent report.
The sector’s profitability remains strong, with aggregate profits reaching $4,67 trillion for the first nine months of 2023, compared to $341,28 billion in the same period of 2022.
This growth is primarily driven by non-interest income, fuelled by translation gains on foreign currency assets and fees and commissions.
The central bank also highlighted the healthy state of loan portfolios, with a non-performing loans ratio of 2,34 percent, well below the international 5 percent threshold.
This, they attribute to sound credit risk management and robust internal controls within banking institutions.
Deposits continue to climb, reaching $16,08 trillion, with foreign currency deposits accounting for a dominant 80,49 percent.
Overall banking sector assets also rose during the period, reaching $28,36 trillion.
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