malvernmugadzikwa
Enacy Mapakame
Listed fintech group, EcoCash Holdings Zimbabwe Limited – is upbeat of growing its domestic US dollar money transfer services following the reduction in transaction charges.
Government reduced IMTT on domestic money transfer transactions to 2 percent from 4 percent effective at the beginning of this year which EcoCash said is expected to further accelerate the adoption of US dollar digital money transfer services.
This also comes as the economy has gradually shifted towards US dollar transactions across sectors.
Already, the mobile money platform has recorded a decline in domestic money transactions as the economy transactions are now skewed towards US dollar based transactions.
“As the market has increased usage of the United States Dollar, we have seen a drop in the volume of our local currency mobile money transactions in the period compared to prior year,” said company secretary Charmaine Rose Daniels in a trading update for the third quarter to November 30, 2022.
“We have focused on growing the mobile money US dollar transactions distribution footprint across the country. We expect this trend to continue as we drive to digitise the US dollar cash economy which has continued to grow,” she said.
In terms of banking services, the segment registered 56 percent growth in mobile banking volumes in the quarter under review against the same period last year.
Interest earning assets recorded an upward trend buoyed by an aggressive drive to grow the foreign currency loan book particularly for the corporate sector.
Point of Sale transaction volumes dropped by 27 percent confirming the increase in US dollar cash transactions in the economy.
As for the insurtech services, the short-term insurance business was able to sustain its revenue performance over the quarter period, compared to the previous year. The business also recorded a lower claims ratio compared to the same period last year.
“The life business has continued to innovate and re-invent itself with several new value-adding products that include the “Dura Pension Scheme”, “Data Life Cover” and the US dollar package to grow revenues despite declining disposable incomes.
“We are pleased with the increased adoption of US dollar packages that allow the business to enhance life cover through assured US dollar benefits.
“We have continued to leverage on the network of funeral service providers to ensure we adequately provide required services in our customers’ time of greatest need,” said Daniels.
Bongani Ndlovu