adminRumbidzai Mbewe Business Correspondent
STEWARD Bank has come up with an innovative strategy that involves creating a new banking habit instead of establishing another bank after the realisation that the banking culture has changed and customers no longer trust banks despite needing the services.The banking concern which is a wholly owned entity of Econet Wireless, has managed to deploy 11 automated teller machines (ATMs) in Bulawayo’s high and low density areas that include Emakhandeni, Mzilikazi, Ascot and Bradfield among other areas.
In an interview with Sunday Business, business development, strategy and e-banking executive, Mr Lance Mambondiani, said the financial institution’s mission was to provide products that are cheaper, relevant and accessible to every Zimbabwean.
“We want to distinguish ourselves through relentless innovation and offering our customers real solutions to their banking requirements. We recognised that banking had changed and that our customers do not trust banks but they still need banking services, our approach is to build a banking model which assists a customer in their transactions,” he said.
Speaking on the challenges that the sector was facing which include loss of trust and confidence and attracting those in the informal sector, Mr Mambondiani said Steward was a mass bank whose target was to offer cost effective banking services to everyone and specifically targeting the unbanked.
“Earlier this year, we introduced our signature mobile account called EcoCashSave. We have since opened more than a million accounts in this segment. These accounts which can be opened in a few easy steps allow anyone on EcoCash to open a bank account on their phone in a few minutes.
Our view is that banking services should be accessible to everyone whether in Harare or in Dotito. This account has allowed grandmothers in the rural areas who were previously marginalised and excluded because they didn’t qualify for a bank account to have an account,” he said.
Mr Mambondiani said their ATMs also had a unique feature which allowed one to make EcoCash transactions as well as purchase air time anytime.
“Our machines are unique in that you can do EcoCash transactions which is a first in the country. Our goal is to offer Steward Bank customers and every Zimbabwean looking forward to withdraw some money from their EcoCash wallet a channel to access their money 24 hours even when other EcoCash agents have closed,” he said.
The bank has also introduced the EcoCash credit, a mobile based loan which allows customers on EcoCash Save to access emergency 30-day loans on their phones. Mr Mambondiani said these loans were approved quickly to customers who qualify.
“All these products are targeted at the informal sector as well as many Zimbabweans who were previously financially excluded,” he said.
Last month, the bank launched their Agent Banking Model, which will allow them to turn many shops and retailers across the country and in the rural areas into Steward Bank agents with the capacity to offer limited banking services such as account opening, balance inquiry as well as withdrawals.
“We are quite excited to be partnering with a number of big and small retail shops in Bulawayo to offer our services. Our intention is to bring banking services to your neighbourhood where it might not be practical for us to build a branch,” he said.
Chief executive officer (CEO), Mr Kwanele Ngwenya, said they had faced challenges just like other banks in the last few years which have resulted in some people losing their hard earned cash. He said the major crisis which was being faced by the banking industry was that bank customers had lost confidence in this sector.
“The popularity of EcoCash has taught us that customers have found a way of doing banking without the needs of a bank. This has been a result of the bank collapses experienced in the last few years where people lost their hard earned cash,” he said.
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