Steward Bank gears up for growth with advanced technology and expanded services

EcoCash Holdings Zimbabwe Limited says its subsidiary, Steward Bank, will leverage advanced technology to enhance operational efficiencies and broaden product offerings.

This strategic move follows the group’s recent disposal of its financial technology businesses to Econet, retaining Steward Bank within its portfolio.

EcoCash Holdings’ chairperson, Ms Sherree Shereni, said the group is committed to harnessing cutting-edge solutions and customer-centric services to maintain its leadership in the evolving digital financial landscape.

“These technological innovations will necessitate a parallel scaling up of the bank’s underlying systems and processes, ultimately enhancing shareholder value,” Ms Shereni stated in a statement accompanying the group’s financial results for the year ended February 29, 2024.

The move towards digital banking typically leads to streamlined operations, driving efficiency and growth.

During the review period, Steward Bank saw a significant increase in the use of USD banking services, with the value of VISA card transactions going up by 115 percent, showing the bank’s leadership in the market.“The increasing use of USD in the economy has led to a large growth in FCA accounts. To further improve the USD banking experience for customers, Steward Bank introduced the FCA Debit card, making local USD transactions more convenient,” Ms. Shereni explained.
In line with its commitment to providing seamless and accessible banking, the bank improved its Point of Sale (POS) network by giving upgraded devices to its merchant partners so that they can handle both local currency and USD transactions on the same machine.

The launch of the Agent Portal to support the agency banking model has significantly improved access for Steward Bank customers. The addition of USSD services lets customers do their banking with a simple mobile phone, expanding the bank’s reach to 130 locations and making the customer experience better.

The group’s mobile money business saw consistent growth in its customer base, transaction volumes, and transaction values, especially for USD transactions. This growth is because of an efficient distribution network, a better customer experience, and constant innovation.

EcoCash, which is now part of Econet, reintroduced Kashagi loans in USD. The loan application process is now instant and hassle-free. The expansion of the mobile money partnership network has made it easier for various sectors, including agriculture, corporations, NGOs, and pensions, to process payroll and cash disbursements.

Ms. Shereni said that integrating USD payment rails with partners and banking institutions has further strengthened EcoCash’s value proposition, offering customers a wider range of services and benefits.

She also said that EcoSure, the group’s life insurance division, experienced growth in its core funeral insurance product and relaunched the ‘Enda Education Cover’ to provide comprehensive coverage for children.

Moovah, the short-term insurance business, formed strategic partnerships to improve how quickly insurance claims are resolved, especially for vehicles. This comes at a time when the number of customer touchpoints for vehicle insurance increased from 150 to 250 by the end of FY24, boosting the company’s market share.

Vaya Technologies, which is now part of Econet, focused on growing anchor businesses in Healthtech, Agritech, and On-Demand Services. The company expanded its offerings and delivered innovative solutions in these sectors.

In terms of financial performance, EcoCash Holdings reported revenue of ZW$874.7 billion for the period, marking a 64% increase from the previous period’s ZW$534.1 billion, with a profit of ZW$287.3 billion, a remarkable 423% rise from the prior year’s loss of ZW$89 billion.

Foreign exchange losses from debentures decreased by 40% compared to the previous year following the settlement of the debentures. The loss from discontinued operations was ZW$42.1 billion, a reduction from the prior year’s ZW$151.6 billion, due to cost optimization and increased operational efficiencies.

Ms. Shereni expressed confidence in the bank’s future growth driven by its diversification strategy. “The business continues to use technology to strengthen its control environment in line with the combined assurance model,” she added.-ebusinessweekly