• ZBFH launched Fusion Essence core banking system, and Life Central, a modern insurance system, in 2025, enhancing digital operations
  • Fusion Essence’s automation and Smile Cash’s rapid growth to over one million subscribers drove a 90% income surge
  • Long-term, Fusion Essence and Life Central will support rapid innovation and sustainability, positioning ZB to lead Zimbabwe’s digital banking and insurance sectors

Harare-ZB Financial Holdings, a leading Zimbabwean financial services provider, advanced its digital transformation in the first half of 2025, as evidenced by its results for the period ending 30 June 2025. The Group launched Fusion Essence, a multi-million-dollar core banking system by Finastra, in January 2025, and adopted the Life Central System, a modern insurance platform, replacing Premia, with data migration nearly complete by mid-2025. These upgrades have streamlined banking operations, enhanced customer experiences, and improved policy management and customer interactions in insurance.

Before implementing Fusion Essence in January 2025, ZB Bank, part of ZB Financial Holdings, used the Flexcube core banking system by Oracle Financial Services Software. This legacy system, while functional, lacked the scalability, automation, and open API capabilities of Fusion Essence, prompting ZB to upgrade to meet modern digital banking demands and enhance customer experiences.

In 2024 and 2025, at least three banks in Zimbabwe replaced or upgraded their core banking systems to enhance digital capabilities and operational efficiency, with NMB Bank and AFC Commercial Bank joining ZB Financial Holdings in this effort. NMB Bank implemented Intellect’s Digital Core (IDC) system on 2 April 2024, enabling scalability, high transaction volumes, and open banking through APIs, as demonstrated by its swift three-day currency conversion to Zimbabwe Gold (ZiG).

AFC Commercial Bank also adopted Intellect’s IDC system in 2024, becoming the second Zimbabwean bank to do so, aiming for an omnichannel customer experience and streamlined operations. ZB Financial Holdings launched Fusion Essence by Finastra in January 2025, enhancing automation and customer-centric services.

Despite initial Q1 challenges, Fusion Essence’s automation and straight-through processing have streamlined operations, reduced costs, and enhanced customer experiences through seamless integration with mobile, internet, and branch banking.

Concurrently, ZB introduced Smile Cash, a digital payment platform, in Q1 2025, gaining over one million subscribers.  Smile Cash supports P2P, C2B, B2C, and G2C transactions, offering self-onboarding, multi-currency support, QR code payments, and integration with VISA, MasterCard, SADC RTGS, and PAPSS.

These systems drove immediate financial gains, with ZB reporting a profit of ZWG 427.7 million, up from ZWG 191.6 million in 2024, fueled by a 90% rise in total income to ZWG 1.9 billion.

Net interest income surged 113% to ZWG 0.477 billion, and banking commissions and fees grew 125% to ZWG 0.905 billion, driven by electronic transactions via Smile Cash and Fusion Essence.

Deposits rose 14% to ZWG 6.262 billion, though loan impairment charges increased to ZWG 0.07 billion.

Meanwhile, ZB Life Assurance reduced its loss to ZWG 6.437 billion from ZWG 9.170 billion, with assets up 9% to ZWG 1.104 billion. ZB Reinsurance posted a ZWG 22.7 million profit, with assets growing 5% to ZWG 0.513 billion, aided by its new Tanzania accreditation.

Workforce optimisation reduced staff to 863, reflecting automation gains from the Robotics Process Automation (RPA) project, set for completion by December 2025.

Long-term, Fusion Essence’s open APIs and flexibility will enable rapid product development and third-party integration, supporting ZB’s focus on the agri-business value chain, as reflected in its SSCI project under EOSD review.

Smile Cash’s regional integration and e-commerce focus will drive financial inclusion, while the Life Central System will enhance insurance efficiency.

The 2026-2030 strategy will prioritize sustainable growth and ESG principles, building on these technologies.

Compared to competitors, Smile Cash challenges EcoCash’s dominance, which benefits from a strong rural agent network and brand loyalty. Smile Cash’s transaction-free model and interoperability with banks and fintechs give it an edge, though user education and reliability are hurdles.

Fusion Essence outperforms legacy systems used by banks like CBZ and Stanbic, enabling faster innovation.

The Life Central System positions ZB Life Assurance ahead of competitors with outdated platforms. ZB’s investments in Fusion Essence, Smile Cash, and Life Central, supported by RPA and a sustainability-focused strategy, position it to lead Zimbabwe’s financial sector through innovation and regional growth.