EcoCash records modest growth in first quarter

ECOCASH Holdings Zimbabwe Limited recorded modest growth in the first quarter to May 31, 2022 supported mainly by the fintech business which remains the group's highest revenue contributor.

In a trading update, for the quarter under review, company secretary Mrs Charmaine Rose Daniels said the group witnessed a modest increase of 2 percent in volumes compared to the previous quarter.

She, however, highlighted the period remained challenging characterised by exchange rate volatility among other dynamics.

"During the period under review, significant exchange losses were recorded due to the weakening exchange rate with the local currency depreciating by 172 percent," she said.

During the quarter under review, the mobile money business – EcoCash launched its domestic money transfer, a convenient option of sending and receiving US dollars across the country and its impact is expected in subsequent periods as the market adopts the product.

A growth of 38 percent was witnessed on wallet funding as customers continue to prefer mobile transactions over other payment platforms.

The mobile money business also saw a 3 percent growth in transaction volumes when compared to the prior quarter due to an increase in customer activity.

"The mobile money business is expected to continuously improve its performance going forward driven by new innovations, product bundling within the group and promotions to drive mobile payments," said Mrs Daniels.

For banking services, Steward Bank continues to leverage on its investment in technology to deliver tailor-made service and solutions to offer convenience and satisfaction to customers.

The bank's interest-earning assets portfolio grew by 3 percent from the last quarter on the back of an increase in underlying business and customer deposits.

In the first quarter, the bank launched the Foreign Currency Account (FCA) on Square, an innovation that digitises all FCA related transactions on Mobile App, allowing customers to transact through their phones.

Mrs Daniels said the banking unit will continue to strengthen its revenue generating capacity, leveraging on its system upgrade to drive the group's digital banking model while capital preservation will remain a priority, amid the rising inflation.

According to the group, the Life business has started offering US dollar-denominated products in the period under review and there was a steady growth of 3 percent on the uptake.

"The group remains focused and committed to growing this segment through providing inclusive insurance solutions both within the life and non-life business," she said.

Vaya Technologies' growth continues to be anchored on the HealthTech business as demand for health services continues to be high.

The HealthTech products are also being bundled with other group products as part of the group' growth strategy.

Over 100 000 customers have been on-boarded onto the MARS-EcoCash capitation model.

While the business environment remains challenging and likely to constrain operations, management however, continues to adapt business units' operating models to both grow and diversify sources of revenue.

Said Mrs Daniels: "We will continue to leverage on our digital platforms to innovate and meet the changing needs of our customers.

"We believe that we have the right products, strategies, and team to ensure that the business can weather the current challenges and emerge stronger as the economy recovers in future."