Zimbabwe News and Internet Radio

Zim banks not embracing mobile money

Mobile payments are seeing slow uptake among Zimbabwean banks, indicating a need for higher levels of integration. 

Zim banks not embracing mobile money
Zim banks not embracing mobile money

George Guvamatanga, president at the Bankers Association of Zimbabwe (BAZ), addressed stakeholders at the annual Agro-business, Food and Nutrition Security Conference in Harare last week on mobile technologies.

“There has been a much slower pace of adoption on mobile-based payment systems due to lack of integrated approach by the banking sector in engaging with the mobile network operators and technology solution providers,” Guvamatanga said.

He pointed to the important role of mobile technology in the agricultural sector, in need of interaction for the functionality of the value chain.

According to BAZ, the slow adoption to the latest technology is due to the high regulatory power to which the banking industry has to conform to maintain the strict standards of operations.

Guvamatanga believes banks, as representative of financial services, should actively promote inclusive offerings, to which mobile technology platforms are the efficient, accessible and electronic answer.

Mobile integration will also provide a solution for high volume, low value transactions and improve the ability of credit performance. Rural farmers will especially benefit from the technology with regards to access loans, repay it through mobile platforms and simplify access to credit.

“Mobile technologies have also opened new frontiers and possibilities for branchless banking, enabling banking services to be available in the remotest parts of the country where majority of farmers are found, without the need to invest in high cost brick and mortar infrastructure,” he said.

The government is expected to upgrade its legislative framework to smooth the interoperability in shared infrastructure to avoid over-investment in the telecommunications sector, which is hoped to result in decreased cost for consumers in using mobile platforms. Humanipo.com