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Zimbabwe emerges as hotspot for scalable fintech solutions
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Zimbabwe is rapidly positioning itself as a fertile ground for scalable Financial Technology (fintech) innovations, with leading local financial institutions at the forefront of this transformation. By harnessing advanced technology, these institutions are bridging gaps in financial inclusion and reshaping how services are delivered across the country.
The spotlight on Zimbabwe's fintech potential was cast at the recent Strategy Execution Advisory Talks (Seat) Summit 2025, held in Victoria Falls under the theme "Harnessing and Optimising Technology for Business Growth and Success."
At the summit, Mr. Agrippa Mugwagwa, Managing Director of Xarani - the fintech subsidiary of FBC Holdings - highlighted the challenges traditional banks face in closing the financial inclusion gap due to high risks and costs. He argued that the solution lies in developing scalable fintech ecosystems, anchored on strong foundations and inspired by successful African models.
"Xarani Fintech is pioneering AI-driven solutions to reduce costs and expand access. Our AI-powered Know Your Customer (KYC) systems have cut onboarding costs by 70 percent, which is critical for reaching rural populations and informal workers," Mugwagwa explained. He also shared that Xarani has built interoperable platforms and established partnerships with telecommunications firms, banks such as Steward Bank and NMB, as well as government-backed digital ID systems.
He emphasized that collaboration is key to Zimbabwe's thriving fintech ecosystem, pointing to mobile money agents, USSD banking, and voice-enabled interfaces in local languages as vital tools for inclusion. Mugwagwa cited Kenya's M-Pesa as a notable success story, driven by widespread mobile penetration, regulatory support, and strong public trust.
"With over 650 million smartphone users in Africa and approximately US$500 billion in annual mobile money transactions, the opportunities for growth are immense," he added.
Also addressing the summit, Mr. Samuel Matsekete, Group Chief Executive Officer of Old Mutual Zimbabwe and Head of Banking Portfolio for the Rest of Africa, outlined how Old Mutual has embraced fintech innovation with the launch of its O'mari mobile money wallet in 2023. The platform integrates both USD and Zimbabwean dollar (ZWG) wallets, providing services such as insurance, nano-loans, and bill payments, accessible via both feature phones and smartphones.
Matsekete noted that financial inclusion has improved significantly, with 83 percent of adults now using formal financial services, up from 69 percent in 2014. Women's inclusion has also risen from 68 to 83 percent over the same period.
Behind the scenes, Old Mutual has deployed Robotic Process Automation (RPA), reducing manual workloads by 92 percent, which has decreased errors and operational costs. The company's investments in artificial intelligence and data analytics have enabled hyper-personalized services, including credit assessments and funeral plan management.
Both Xarani and Old Mutual stressed the importance of partnerships in driving fintech growth. O'mari's integration with ZimSwitch, Zimbabwe's national payment switch, and FBC's collaboration with telecom giant Econet to broaden agent networks are examples of such strategic alliances.
Regulatory frameworks, including sandboxes for innovation, cryptocurrency policies recognizing digital assets like ZiG, and open banking mandates, were identified as crucial enablers supporting the sector's rapid expansion.
Despite these advances, traditional banking penetration in Zimbabwe remains relatively low, with savings accounting for just three percent of GDP and insurance penetration at 3.6 percent. This gap is encouraging innovators to leverage digital technologies to reach the unbanked and underserved segments of the population.
As Zimbabwe continues to embrace fintech, the combined efforts of local financial institutions, regulatory support, and technological innovation are driving a new era of financial inclusion and service delivery across the nation.
The spotlight on Zimbabwe's fintech potential was cast at the recent Strategy Execution Advisory Talks (Seat) Summit 2025, held in Victoria Falls under the theme "Harnessing and Optimising Technology for Business Growth and Success."
At the summit, Mr. Agrippa Mugwagwa, Managing Director of Xarani - the fintech subsidiary of FBC Holdings - highlighted the challenges traditional banks face in closing the financial inclusion gap due to high risks and costs. He argued that the solution lies in developing scalable fintech ecosystems, anchored on strong foundations and inspired by successful African models.
"Xarani Fintech is pioneering AI-driven solutions to reduce costs and expand access. Our AI-powered Know Your Customer (KYC) systems have cut onboarding costs by 70 percent, which is critical for reaching rural populations and informal workers," Mugwagwa explained. He also shared that Xarani has built interoperable platforms and established partnerships with telecommunications firms, banks such as Steward Bank and NMB, as well as government-backed digital ID systems.
He emphasized that collaboration is key to Zimbabwe's thriving fintech ecosystem, pointing to mobile money agents, USSD banking, and voice-enabled interfaces in local languages as vital tools for inclusion. Mugwagwa cited Kenya's M-Pesa as a notable success story, driven by widespread mobile penetration, regulatory support, and strong public trust.
"With over 650 million smartphone users in Africa and approximately US$500 billion in annual mobile money transactions, the opportunities for growth are immense," he added.
Also addressing the summit, Mr. Samuel Matsekete, Group Chief Executive Officer of Old Mutual Zimbabwe and Head of Banking Portfolio for the Rest of Africa, outlined how Old Mutual has embraced fintech innovation with the launch of its O'mari mobile money wallet in 2023. The platform integrates both USD and Zimbabwean dollar (ZWG) wallets, providing services such as insurance, nano-loans, and bill payments, accessible via both feature phones and smartphones.
Matsekete noted that financial inclusion has improved significantly, with 83 percent of adults now using formal financial services, up from 69 percent in 2014. Women's inclusion has also risen from 68 to 83 percent over the same period.
Behind the scenes, Old Mutual has deployed Robotic Process Automation (RPA), reducing manual workloads by 92 percent, which has decreased errors and operational costs. The company's investments in artificial intelligence and data analytics have enabled hyper-personalized services, including credit assessments and funeral plan management.
Both Xarani and Old Mutual stressed the importance of partnerships in driving fintech growth. O'mari's integration with ZimSwitch, Zimbabwe's national payment switch, and FBC's collaboration with telecom giant Econet to broaden agent networks are examples of such strategic alliances.
Regulatory frameworks, including sandboxes for innovation, cryptocurrency policies recognizing digital assets like ZiG, and open banking mandates, were identified as crucial enablers supporting the sector's rapid expansion.
Despite these advances, traditional banking penetration in Zimbabwe remains relatively low, with savings accounting for just three percent of GDP and insurance penetration at 3.6 percent. This gap is encouraging innovators to leverage digital technologies to reach the unbanked and underserved segments of the population.
As Zimbabwe continues to embrace fintech, the combined efforts of local financial institutions, regulatory support, and technological innovation are driving a new era of financial inclusion and service delivery across the nation.
Source - the herald
