Emmerson Njanjamangezi, Group Features Editor 
FINANCIAL services giant Old Mutual Zimbabwe has launched its Fintech business, Old Mutual Digital Services (OMDS), a subsidiary that will provide mobile money services, insurtech, investech, digital lending, e-commerce, payments, and digital products and services for the retail mass market.
The new venture, which is wholly owned by Old Mutual Zimbabwe (OMZ), seeks to service the rising mobile money demands within the economy.
In a statement this week, OMZ group chief executive Samuel Matsekete said the new venture fits well within the integrated financial institution’s pursuit of financial inclusion.
Old Mutual managing director Sam Matsekete
“We are pleased to launch the fintech business, which we have designed to extend innovative integrated financial solutions and promote financial inclusion everywhere in Zimbabwe. This initiative also asserts our commitment to being our customers’ first choice to sustain, grow and protect their prosperity”.
Matsekete added that digital transformation was a strategic imperative for Old Mutual Zimbabwe to further serve the market efficiently.
“It is my pleasure to announce Arthur Matsaudza as the OMDS managing director. He is supported by a professional and innovative team that is very committed to making a positive difference to those we serve. OMDS operates as a legal entity, governed under a duly constituted board. Gloria Zvaravanhu chairs the OMDS board,” Matsekete further said.
Prior to his appointment as managing director of Old Mutual Digital Services, Matsaudza was the executive, of Digital Platforms Old Mutual Africa Regions and group executive for Digital and Data in Zimbabwe.
Zvaravanhu is an experienced business executive and a chartered accountant. She is the current managing director for the general insurance business, Old Mutual Insurance Company.
The new OMDS venture seeks to expand beyond traditional financial services through a product offering designed to meet the everyday needs of its customers.
“By providing innovative, digital-first solutions that reduce barriers to access and align with evolving market trends, OMDS will transform lives through affordable, flexible, and on-demand solutions provided via new distribution channels, leveraging strategic partnerships and driving financial inclusion and usage,” Matsaudza said in a statement.
Old Mutual Zimbabwe recently reported that its financial position remained strong during the year ended December 31, 2022, despite high inflation and value losses recorded on its listed equity portfolio.
Zimbabwe’s annual inflation closed the year at 243,8 percent, while the Zimbabwe Stock Exchange All-share index advanced 80.1 percent compared to 310.5 percent in the prior year.
The property market, however, remained stable, even though risks around tenant and income quality persisted.
In a statement accompanying the group’s results for the year, chief executive Matsekete said inflation-adjusted total assets grew by 14,3 percent to $1,014 trillion during the year, with the increase driven by fair value gains on properties.
While the business recorded a significant profit in historical cost terms, in inflation adjustment terms, Matsekete said the group recorded a loss before tax of $24,6 billion, down from a $101,4 billion profit in 2021.
“The decline in inflation-adjusted profits was attributable to fair value losses recorded on the listed equity portfolio, with the ZSE performance for the year being significantly below inflation,” the chief executive said.
“The group closed the year 2022 with strong liquidity and solvency positions as well as being adequately capitalised in line with the regulatory requirements, and to support planned growth into the future,” he added.
He said investment returns increased to $414,8 billion from $126,4 billion in the prior year largely due to nominal gains on investment properties, equity investments, and the translation gains on foreign currency-denominated investments, in historical terms.
The group achieved a 733 percent increase in net interest income from $4.9 billion to $40,8 billion following growth in the loan book.
Matsekete said the group welcomes and will continue to support government efforts aimed at stabilising and transforming the economy.
“Such efforts should continue to be coordinated effectively and transparently to promote both capital markets and inclusive growth.”
And on his part, board chairman Kumbirayi Katsande said efforts by the government and regulatory agencies to stabilise the macro-economic environment and maintain the viability of the financial services industry were welcome.
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