76% of Zimbabweans have no access to banks

THE Reserve Bank of Zimbabwe (RBZ) has said at least 76 percent of the population in the country still remains with no access to financial services as formal banks have failed to expand their products to all corners of the country.

RBZ National Payment System senior executive, Mr Joseph Mutepfa, said there was a huge potential in Zimbabwe's banking sector as most people still had no access to banks.

"About 76 percent of our population has no access to financial services and in any way, mobile money operators have actually tried to put that money which is outside the banking system and under the pillows into the formal system," he said last week in Bulawayo during a Mobile Markets and Telecomms Forum.

Mr Mutepfa said only 24 percent of the population was banked while 14 percent used non-bank formal products.

The non-bank formal products used include regulated microfinance institutions and insurance companies.

Mr Mutepfa added that 22 percent of the population used informal bank services while about 40 percent did not use any financial products and were financially excluded.

He added that the mobile money operators were making strides in tapping into the unbanked population.

"The saving culture, because of history, has been eroded and people never saved and trusted their pillows. So mobile banks have actually taken that money from the pillows," said Mr Mutepfa.

"The mobile money operators have taken that money to a radar which can be managed and what is needed is having other products like saving, credit and micro-insurance which will build up to deepen the financial services," he said.

The country's three mobile telephone services providers, Telecel Zimbabwe, NetOne and Econet have launched mobile money transfer service allowing subscribers to use mobile phones to send money.

Mr Mutepfa said mobile banks operating in Zimbabwe had $60 million in their accounts.

"Bank deposits currently stand at $4,8 billion and of that $600 million are personal accounts and mobile money is $60 million," said the official.

He, however, said mobile money operators "will not replace banks but will bring diversity in the banking system".