Categories: Stories

Reserve Bank of Zimbabwe urges banks to innovate for survival

The Reserve Bank of Zimbabwe (RBZ) says banks must come up with new and innovative products that encourage financial inclusion in the country where the majority of the population remains largely unbanked.

Deputy central bank governor Charity Dhliwayo told delegates attending a banking, finance and insurance conference in the capital recently that banks must take advantage of technology, which she said has introduced a paradigm shift in the functioning of banks and delivery of banking services

“There is no doubt that an efficient banking system is a prerequisite for an efficient economy. With the fast-paced technological advancements and innovation in electronic banking products there have been significant transformation in the delivery channels in the banking sector and payment system platforms including mobile money and internet based payments,” she said.

Dhliwayo noted that the growth of the internet, mobile and communication technology has added a different dimension to banking.

“Information technology is now being leveraged in customer acquisitions, driving automation and process efficiency, delivering ease and efficiency to customers. In this regard, technology is no longer an enabler, but a business driver which is enhancing efficiency in the value chain of banking institutions with benefits of reduced costs and higher productivity,” she said.

Zimbabwean banks are struggling to retain depositors due to poor interest earnings on deposits but with high cost on borrowings, with the majority of people preferring mobile transactions.

Statistics from the central bank show that total banking sector deposits stood at $5.6 billion by June 30, 2015, compared to a total of $6.1 billion that was transacted on mobile platforms between 2009 and 2014.

Electronic payments are expected to hit the $50 billion mark by year-end.- The Source

(245 VIEWS)

This post was last modified on %s = human-readable time difference 7:09 pm

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024