Banks in Zimbabwe failing to cope with transactions

With the sharp rise in bank account holders in line with the use of plastic money, stakeholders believe the information communication infrastructure is being outstripped by the volumes and high charges levied on the banking public and high interest rates remain challenges that now need attention in the obtaining economic environment.

In a bid to ease cash shortages, the Reserve Bank of Zimbabwe and other stakeholders pushed for the wide use of electronic transactions with most Zimbabweans now using the point of sale machines, mobile transfers, internet banking and the real time gross settlement (RTGS).

These methods of payments which offer convenience to the transacting public have been well-received by most as highlighted by the sharp rise in new accounts.

Challenges of delays in the processing of most of transactions have, however, remained unresolved causing nightmares to the public.

The volumes of transactions have led to clogging of the system leading to reversal of close to 30 percent transactions, highlighting the lack of investment in the information communication infrastructure which has remained a worrying phenomenon despite the banks posting huge profits.

According to the central bank, transactions through the point of sale machines, mobile money transfers have increased but it does not tally with the hassles that the transacting public go through on a daily basis.

Interest rates have remained very high compared to the obtaining economic environment.

Recording such a jump in figures, security concerns are also bound to arise prompting a need for financial services to quickly put in measures to adapt to the new systems.

Gaps are still visible in the depositors' confidence to sustain their monthly savings within the financial institutions a continuing trend that requires attention of fiscal authorities.