GetBucks To Offer Short-Term Loans To Cushion Bank From Hyperinflation

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By Alois Vinga

FINANCIAL services provider, Getbucks Microfinance Bank will be issuing loans on a short-term basis as a strategy to mitigate hyperinflation ravaging the country’s economy.

Speaking to Business this week, the financial institution’s managing director, Terrence Mudangwe said the move was aimed at cushioning the bank from the devastating effects of inflation.

“The lending aggression will continue albeit with a deliberate bias towards shorter term loans in a bid to preserve value in this hyper inflationary environment,” he said.

Most lending institutions have been opting for short term loans which are scheduled to be serviced within twelve month in order to avoid the risk of recovering the loaned money at a time when its value has been lost.

GetBucks is also working on expanding its retail footprint through the use of digital self-service channels and has since tabled its plans to focus on an increased banking presence in order to bring convenience to clients.

Mudangwe said going forward, lending to the agricultural sector and the mass market will also be one of their focus area.

“In our digitalisation journey, we have recently launched an innovative mobile banking application with unique features such as bank to Ecocash wallets that can transfer direct to any recipient. Most bank to Ecocash wallets only permit a user to transfer to their wallet first,” he said.

Despite the obtaining harsh economic environment, the Bank received a license to operate a bureau-de-change and commenced bureau-de-change operations in July 2019 and the value preservation strategy to acquire investment property in 2018 continued to yield results.