- Mobile money transactions up by 19%
- Steward bank customer base rose by 75%
- Insurtech grew by 17%
Harare- Diversified smartech group, Cassava Smartech Zimbabwe Limited realized gains in the nine months and third quarter (Q3 FY20) ended 30 November 2019.
In a trading update for the period under review, the Company said it saw an increase in volumes across almost all product and service lines, notwithstanding the erosion of tariffs in real terms that have not matched the inflation rate.
Mobile money transactions increased by an average of 19% from the Q3 FY19 to Q3 FY20 while the number of active customers has also increased by 175 in the same period.
The increased use of mobile money platforms has been necessitated by the cash shortages in the country that government is failing to completely solve.
The gains are despite the macroeconomic environment over the period under review being characterised by subdued consumer demand as a result of the continued depreciation of the Zimbabwe Dollar, a reemergence of hyperinflation, erosion of disposable incomes, high unemployment and chronic power outages.
Steward Bank grew its customer base by 75% from Q3 FY19 to Q3 FY20, an increase they attributed to their highly innovative technologies that are making banking more convenient.
However, it recorded a decline in transactions on its Point of Sale terminals by an average of 46% from the Q3 FY19 to Q3 FY20, a trend which is commensurate with declining volumes in the retail sector as consumer disposable incomes fail to keep up with inflation.
In addition, the insurtech business performed positively, recording a 17% growth in life policies in the period under review.
“The business recorded significant growth in our short-term insurance business which grew by 5,050% compared to the same period prior year. The EcoSure and Moovah businesses have managed to maintain their claims ratios at a level lower than the industry average”, the Company said.
On the outlook, the Company says it will continue to focus on identifying and developing opportunities in the market that are consistent with the changing customer demands without compromising on service excellence.
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