By Alois Vinga
LISTED diversified technology group, Ecocash Holdings Zimbabwe Limited (EHZL), says 80% of its revenue has been injected by the Financial Technology (FinTech), signifying the impact of technology as a modern force in driving business.
Presenting the group’s financial performance this week, EHZL board chairperson, Sherree Shereni, said during the period ended February 28, 2022, much of the revenue was driven by FinTech.
“The Fintech businesses remained the largest contributor to revenue, at 80%. The contribution by the Insurtech business was at 14%, a slight decrease from the prior year’s 15%, and Vaya Technologies closed the year at a contribution of 6%.
“Management will continue to adapt business units’ operating models to both grow and diversify sources of revenue,” she said.
EHZL growth resonates with global trends, which currently show that the FinTech sector is recording tremendous growth.
The global market was valued at around US$7,3 trillion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 26,87% up to 2026, according to Research and Markets, on the back of increased investments in technology-based solutions, supportive government regulations and the rising adoption of internet of things (IOT) devices, among other factors.
Prior to the coronavirus (COVID-19) pandemic, FinTech adoption was doubling every two years, according to the Global Fintech Adoption Index 2019.
It swelled from 16% percent in 2015 to 64% in 2019 – and growth continued throughout the crisis.
The pandemic was a game changer, with FinTech acting as a core enabler of digital payments as consumers rapidly migrated to contactless and online shopping. As the global economy shifts from ‘respond’ to ‘recover’, new opportunities will arise.
Meanwhile , during the period EHZL delivered a commendable performance once again, with the group’s revenue closing at ZW$29,9 billion, 26% above the financial year 2021 performance of ZW$23,8 billion.
“The Group is optimistic about the future and will drive financial inclusion by leveraging the power of our digital platforms and partnerships.
“Our diversified group will continue to produce cutting-edge inclusive solutions and will expand our fintech solutions to agriculture, education, healthcare, and financial services, through the adoption of artificial intelligence (AI), big data, blockchain, and machine learning,” added Shereni.