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BARD Santner Incorporated, a local financial intermediary firm specialising in asset management, corporate finance and wealth management, has launched a new money remittance platform, TX Money Transfer, promising a new value proposition based on “reliability, transparency and efficiency”.
TX Money Transfer has pledged to improve reliability, transparency on charges to avoid hidden costs while promoting collaboration to remove process chokeholds from the sector that have taken a toll on clients who find it easy to send money, but hard to receive due to bottlenecks at the end of the value chain.
In business, bottlenecks occur when a process is inefficient or time-consuming, causing delays in the key workflows and inconveniences to customers. TX Money Transfer executive director, Lucia Chingwaru, said at the launch of the new remittance service in Harare Wednesday that her company was determined to offer quality and reliable service while building scale and presence across the country in collaboration with existing players.
She said it was critical to let clients know charges and hidden costs involved in the remittance process to ensure transparency. Besides, Chingwaru wants emerging players to work closely with established ones to create a hub to deliver “last mile” payment solutions in area where there is a problem of receiving money once it has been sent. Essentially, this involves identifying and removing bottlenecks which emerge as both silent stumbling blocks to delivery at critical focal points over the financial flow processes, intermediation and outcomes.
This means TX Money Transfer, working with other players, has to delve into the nuances of bottlenecks, dissecting their anatomy and impact while devising mitigation strategies. “Today marks a momentous occasion as we introduce TX Money Transfer, a new business specifically designed to cater to the urgent financial needs of individuals and companies requiring swift fund transfers,” she said.
“Our main objective is to bridge existing gaps in the remittance sector by offering a reliable, transparent and integrated service. Reliability is key to us, just like transparency is. We also need to work with others in an integrated, not fragmented way. “To start with, we need to study the current system with existing players to remove bottlenecks in the sector to ensure smooth and better service for our clients and good returns for business.
“To grasp their significance of this issue, we should delve into the nuances of bottlenecks, dissecting their anatomy, impact, and strategies for mitigation.” For Chingwaru, the need to identify process chokeholds, supply chain disruptions, capacity constraints and ripple effects like time theft is critical in enhancing efficiency.
“There is also need to pay attention to the issue of opportunity cost. Every minute spent waiting in a queue, for instance, due to bottlenecks is a missed opportunity elsewhere,” she added. “To address some of these key issues requires collaboration with others and process redesign and revisit of workflows.
Technology can be used to address these issues. “For instance, we need to ensure automation and artificial intelligence in critical areas, which can help. The idea is to increase capacity, reduce lead time and improve capacity. It is crucial to continuously monitor the process and remove bottlenecks.”
From Harare, the launch roadshow will move to Bulawayo and other main cities around the country. As part of its engagement and marketing drive, TX will be offering mouth-watering gold coin prizes worth US$100 000 until the end of the year through raffle draws. The first one was done at Africa Unity Square.
The remittance business in Zimbabwe’s competitive financial services sector is fast expanding, generating billions in local, regional and international transfers, as fintechs grow to help companies, businesses and individuals better manage their financial operations, processes and lives with improved and efficient payment solutions. “The remittance industry in Zimbabwe is currently characterised by the physical cash outflow of sent funds.
“The flow of cash transactions comes with challenges at focal point, of collection,” Chingwaru added. “Receivers often encounter obstacles such as system failures, insufficient funds at collection points, long waiting times, and undisclosed charges that become apparent only upon collection. “When analysing the entire value chain, it becomes evident that sending money is efficient, yet collection process is inefficient. The challenges faced at collection points can be summarized as reliability issues.
“TX Money Transfer directly addresses these concerns by focusing on the final stage of the value chain – the collection points,” she said. “Our commitment is to identify the root causes of these challenges and work towards resolving them to ensure reliability and transparency. By utilising y TX Money Transfer, we assure the availability of funds for disbursement and guarantee no hidden fees.”
Chingwaru said the remittance market was fragmented, resulting in redundant efforts. For instance, she added in her speech, that multiple remittance services often deliver funds to the same destination, leading to inefficiencies and increased transaction costs.
“These challenges can be mitigated through partnerships with other remittance providers, assisting in their disbursements as part of the value chain. Collaborations will facilitate economies of scale, streamline processes, and consolidate efforts,” she said. “This approach will enable other remittance providers to offer services more efficiently and reliably to their customers.”
Addressing differentiation issues, she said TX wants to ensure value addition and quality, leveraging efficiency and reliability. It also wants clients assurance that funds can be sent to a specific location and that cash will readily available, with known associated costs. Since most remittances usually cater to emergencies, clients require a dependable service at a reasonable price.
“We have observed that reliability and quality should take precedence over a free service. Clients are willing to pay for a service they can trust,” said Chingwaru.
Our brand commitment revolves around reliability and differentiation, setting us apart in a market characterised by inconsistencies and undisclosed fees. We are dedicated to upholding these principles.”
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