20 January 2018
Tsvangirai golden handshake confirmed
DisGrace sneaks out three luxury cars
ED cuts Bob Singapore crew from 38 to 22
Call for Diaspora Minister and MPs
ED so over confident it worries him
Priscilla demands coup ‘killings’ details
CBD maize roasting must end now: Min
Tsvangirai faces disgraceful exit: Judge
ZTA targets domestic tourism
SOE DEBATE: Privatise most parastatals
Delight as ZBC 'Iron Lady' suspended
Sulu arrested over $4,000 child support
Mapeza targets CAF CL group stages
Tendai Ndoro special - says Ajax coach
Elections: Not a moment to be lost
A view beyond the Zimbabwe coup
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift

Mobile banking transactions hit $800mln in April as cash shortages bite


12/07/2017 00:00:00
by Source.co.zw

HARARE: Mobile based banking in April reached $792.5 million, an all time high as cash strapped Zimbabweans shift to digital platforms, recent report has shown.

The southern African nation is in the grips of a an acute banknote shortage fuelled by a widening trade gap and declining production.

A report on the country’s banking sector by stockbroking and advisory firm IH Securities showed that traditional ATM transactions have fallen dramatically from $331.5million in January 2016 to $39.3 million in April 2017.

“The use of mobile banking has been increasing over the months and went from $388.9mn in January 2016 to $792.5 million in April 2017. Because of the convenience of mobile banking, we expect this figure to continue to increase as banks continue to partner with telco providers to increase convenience to customers,” reads the report.

“Internet banking has also evolved in the last couple of years as it has also become a convenient way of banking”.

Card based transactions increased in the month of April to $506.14 million from $451 million in March 2017, but lower than $551.78 million that was recorded in December 2016 most likely driven by the festive season.

Cash based transactions for the month of April 2017 were $459.61 million down from $703.3 million reported in April 2016, however up on December 2016 levels of $397.50 million.

The report notes that Bond notes, a local currency introduced by the central bank last year to try alleviate the banknote shortage, have since also disappeared from circulation.

As at April the Reserve Bank Of Zimbabwe (RBZ) had released $160 million worth of bond notes onto the market but the report says that “only $9 million was in commercial banks reflecting the scarcity of these notes even within the local banks”. This has meant that commercial banks have not been able to give out bond notes in branch or at ATMs.


Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it






Face Book



comments powered by Disqus
RSS NewsTicker