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Nelson Gahadza-Senior Business Reporter
Steward Bank says as the local banking industry continues to digitalise, it will leverage the trends to consolidate its leading position in the Visa Card payments space and use of digital products and platforms.
Chief executive Mr Courage Mashavave said the bank had already pivoted digital products, such as the revamped Visa Debit Card, which it launched in July 2024, to further consolidate its leadership position and accommodate the changing consumer habits and trends.
“The modern-day customer has become extremely aware of the technology-driven options at their disposal given the high mobile penetration rate in the country and has evolved to desire products that cater to their unique needs and attributes whilst bringing convenience and simplicity.
“The bank continues to pioneer digital bank solutions that are more convenient, accessible, and personalised in nature,” he said in a statement of financials for the half-year to August 31, 2024.
Mr Mashavave said with this in mind, the bank enhanced its Square Mobile application, adding key billers to offer its customers an array of services, thereby effectively reducing customer effort.
He said the bank also launched the infinite Visa credit card, which provides flexibility and convenience, offering various benefits, including access to airport lounges and discounts at hotels and car rental services.
“The advent of these products enables foreign currency to be used through formal channels as well as ultimately reducing the risk associated with cash transactions,” he said.
During the period under review, the bank closed two of its branches, namely Borrowdale Sam Levy Branch and Gunhill Branch, as part of the reimagining process, which led to rationalisation of some branches.
Mr Mashavave said the closure of these branches led to their consolidation and the birth of a new Borrowdale branch.
“This new branch will cater to the bank’s high-value clients and corporates, ensuring personalised services are rendered to them,” he said.
Additionally, Mr Mashavave said the bank has ceased processing transaction use cases that are provided for on its digital channels at branches.
“Furthermore, our agent network expanded by 10 percent during this period under review, increasing our reach to customers and providing additional benefits such as improved accessibility and convenience.
“Going forward, the bank will look further to enhance the use of artificial intelligence to advance its digital strategy while having a better understanding of its customers through improved data-driven insights that enable it to offer personalised services to its customers,” he said. For the period under review, Mr Mashavave said the bank successfully contained operating expenses, with a 33 percent improvement from the same period prior year.
The banks’ net operating income for the period declined by 10 percent from ZiG1 billion to ZiG90,54 million, mainly attributed to the reduction in interest income as a result of the recalibration of the local currency loan book to the new currency and attendant interest rates.
The bank’s net assets closed the period under review at ZiG1 billion, realising a 56 percent increase from the prior year, which was sitting at ZiG663 million.
“This was mainly facilitated by the 88 percent increase in loans and advances from ZiG288,4 million as of 29 February 2024 to ZiG541 million due to increased lending driven by growth in the deposit base and efforts to restructure the loan book to cater for affordable renewable energy aligned to Sustainable Development Goal 7,” said Mr Mashavave.
Steward Bank remained under Ecocash as continuing operations after a scheme of reconstruction where all Ecocash Holdings non-banking assets were transferred to Econet Wireless.
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