News / National
Econet set to be the biggest bank in Zimbabwe
29 Apr 2012 at 15:00hrs | Views
Mobile operator Econet Wireless is venturing into the financial services sector after the success of its money transfer service Ecocash and its reported acquisition of a stake in TN Bank.
Deputy Prime Minister Professor Arthur Mutambara said Econet stood to become the biggest bank in Zimbabwe through Ecocash.
"If we are talking about how technology will transform our lives, Econet is set to become the biggest bank in the country," Mutambara said.
"The reason is that only 20% of our people have access to a brick-and-mortar bank."
About 80% of Zimbabweans do not have bank accounts because of factors which make it difficult for them to have a steady income.
Many people have also carried over a distrust of the banking sector, based on the dark days of the Zimbabwean dollar.
Econet's CEO Douglas Mboweni told an investment forum this week that Ecocash had been an enormous success, boasting of more than a million subscribers within only six months.
Ecocash's popularity rides on Econet's subscriber base, with more than 6.4 million users.
The money transfer facility boasts low rates.
It targets the low-end market, in which people do not have mainstream bank accounts that prescribe certain minimum balances and charge bank levies.
Mutambara added that mainstream banks should draw lessons from Econet.
"There is a lot of money to be made by investing in the poor," he added.
To further assert its position in the financial services sector Econet has bought into TN Bank with a $20-million dollar injection.
This will automatically propel the bank to the top five in Zimbabwe once the deal is finalised.
The relationship between Econet and TN Bank can be traced back to the time when Econet launched Ecocash and used TN Bank as its agent.
Deputy Prime Minister Professor Arthur Mutambara said Econet stood to become the biggest bank in Zimbabwe through Ecocash.
"If we are talking about how technology will transform our lives, Econet is set to become the biggest bank in the country," Mutambara said.
"The reason is that only 20% of our people have access to a brick-and-mortar bank."
About 80% of Zimbabweans do not have bank accounts because of factors which make it difficult for them to have a steady income.
Many people have also carried over a distrust of the banking sector, based on the dark days of the Zimbabwean dollar.
Econet's CEO Douglas Mboweni told an investment forum this week that Ecocash had been an enormous success, boasting of more than a million subscribers within only six months.
Ecocash's popularity rides on Econet's subscriber base, with more than 6.4 million users.
The money transfer facility boasts low rates.
It targets the low-end market, in which people do not have mainstream bank accounts that prescribe certain minimum balances and charge bank levies.
Mutambara added that mainstream banks should draw lessons from Econet.
"There is a lot of money to be made by investing in the poor," he added.
To further assert its position in the financial services sector Econet has bought into TN Bank with a $20-million dollar injection.
This will automatically propel the bank to the top five in Zimbabwe once the deal is finalised.
The relationship between Econet and TN Bank can be traced back to the time when Econet launched Ecocash and used TN Bank as its agent.
Source - timeslive
