'Only 46% of Zimbabweans have bank accounts'

TN CyberTech Bank has sounded the alarm over Zimbabwe's worsening financial exclusion, revealing that only 46 percent of the country's adult population holds a formal bank account, according to its latest financial results for the six months ending August 31, 2025.

The bank said the figure reflects not just economic hardship but decades of mistrust and structural inefficiencies that have alienated citizens from formal financial systems. Many Zimbabweans remain sceptical of traditional banks due to past economic crises that wiped out savings and pensions, including episodes of hyperinflation and abrupt currency transitions. This long-standing mistrust has led many to prefer keeping cash at home or participating in informal savings clubs such as mukando.

High costs associated with formal banking have also discouraged participation. Traditional banks often charge steep fees for account maintenance, transactions and balance inquiries while offering minimal interest returns. The situation is further compounded by the Intermediated Money Transfer Tax (IMTT), a two percent levy on electronic financial transactions introduced to widen the tax base. For low-income earners and informal sector workers, these costs often outweigh the benefits of maintaining a bank account, pushing them toward informal financial solutions.

Accessibility remains a significant barrier. Banking infrastructure, including branches and ATMs, is heavily concentrated in urban centres, leaving rural populations underserved. Mobile money services, particularly EcoCash, have filled this gap with agent networks reportedly up to ten times denser than bank branches. The widespread use of mobile phones has accelerated this shift, providing millions with access to basic financial services even in remote areas.

Zimbabwe's volatile economic environment and frequent currency reforms have further undermined confidence in formal banking, making long-term financial planning risky. Stringent account requirements such as mandatory payslips and minimum balance thresholds continue to exclude informal workers and those without steady income.

In response, TN CyberTech Bank says it is implementing a digital transformation strategy aimed at addressing the problem. "Our strategic blueprint seeks to tackle financial exclusion, a challenge evidenced by the fact that only 46 percent of Zimbabwe's adult population holds a formal bank account," said Group Chief Executive Officer Tawanda Nyambirai.

The bank, a subsidiary of TN CyberTech Investments Holdings Limited, has positioned itself as Zimbabwe's first fully-fledged neobank. Its digital-first, low-cost model has yielded strong performance, with net interest income tripling to ZWG106.6 million from ZWG31.8 million a year earlier. Profit after tax surged by 184 percent, driven by increased loan volumes, deposit growth and operational efficiency. Deposits rose by 25 percent to ZWG5.9 billion, while the loan book expanded by 19 percent to ZWG1.1 billion.

Following its 2024 corporate restructuring that saw the disposal of non-core subsidiaries such as EcoCash, Vaya and MARS Zimbabwe, the bank has refocused its operations on digital banking innovation. Its new guiding philosophy, IDIFOH - representing Innovation, Dignity, Industry, Faith, Originality and Humility - underpins its renewed customer promise.

In May 2025, TN CyberTech launched a low-KYC core banking system designed to reduce dependence on foreign software vendors and lower onboarding costs, making banking more accessible to underserved populations.

Looking ahead, the bank plans to further expand financial access across Zimbabwe through the digitalisation of remittances and card services, the creation of integrated e-commerce platforms for small and medium enterprises, and the rollout of nano-loans for low-income earners.

Nyambirai said the bank's long-term vision is to restore public confidence in formal banking while ensuring that every Zimbabwean, regardless of income or location, has access to affordable, efficient and secure financial services.