Business / Companies
Econet unveils EcoCash Savings Club
07 May 2015 at 12:39hrs | Views
Mobile telecoms operator Econet Wireless has launched 'EcoCash Savings Club', a new mobile product to support savings groups across the country.
According to Econet anyone registered on EcoCash - the company's mobile money service - can set up a group mobile wallet for free.
Econet's head of EcoCash Business Ms Natalie Jabangwe-Morris said the EcoCash Savings Club will enhance the capacity of traditional savings groups, which are quite common in Zimbabwe.
"Group savings culture for specific purposes or asset investment is a common phenomenon in Zimbabwe, but the target segment is largely un-recognised and under-appreciated."
"EcoCash Savings Club is intended to reward this diligent savings behaviour, as well as become an enabler for access to other services, such as mobile credit. It also offers an opportunity to extend EcoCash mobile money agency businesses to groups of people that are credit worthy, but have been long marginalised," she said.
In a statement, the mobile telecoms operator explained how the EcoCash Savings Club will function: "A group's appointed chairperson initiates the opening of a club account on their mobile phone and invites members to join immediately. There is a facility to select approving members and to verify the withdrawal of funds based on multiple SMS sign-offs. All members can check the group's account activity at any time on their phones. It is free to move funds between the group wallet, individual wallet and bank account."
Econet added that savings clubs on the new platform earn interest on all pooled funds starting from $1 after every 30 days.
Commenting on the development, Econet chief executive officer Mr Douglas Mboweni said the new platform will help extend financial inclusion in the country.
"In Econet's drive to broaden financial inclusion, we seek to create economies of scale that build up savings deposits for the nation as well as demonstrate through their savings patterns the credit worthiness of our customers."
The platform will likely benefit people that have been performing group savings outside formal banking channels due to stringent requirements by mainstream financial service providers.
According to Econet anyone registered on EcoCash - the company's mobile money service - can set up a group mobile wallet for free.
Econet's head of EcoCash Business Ms Natalie Jabangwe-Morris said the EcoCash Savings Club will enhance the capacity of traditional savings groups, which are quite common in Zimbabwe.
"Group savings culture for specific purposes or asset investment is a common phenomenon in Zimbabwe, but the target segment is largely un-recognised and under-appreciated."
"EcoCash Savings Club is intended to reward this diligent savings behaviour, as well as become an enabler for access to other services, such as mobile credit. It also offers an opportunity to extend EcoCash mobile money agency businesses to groups of people that are credit worthy, but have been long marginalised," she said.
In a statement, the mobile telecoms operator explained how the EcoCash Savings Club will function: "A group's appointed chairperson initiates the opening of a club account on their mobile phone and invites members to join immediately. There is a facility to select approving members and to verify the withdrawal of funds based on multiple SMS sign-offs. All members can check the group's account activity at any time on their phones. It is free to move funds between the group wallet, individual wallet and bank account."
Econet added that savings clubs on the new platform earn interest on all pooled funds starting from $1 after every 30 days.
Commenting on the development, Econet chief executive officer Mr Douglas Mboweni said the new platform will help extend financial inclusion in the country.
"In Econet's drive to broaden financial inclusion, we seek to create economies of scale that build up savings deposits for the nation as well as demonstrate through their savings patterns the credit worthiness of our customers."
The platform will likely benefit people that have been performing group savings outside formal banking channels due to stringent requirements by mainstream financial service providers.
Source - BH24
