FBC taps into the mobile money business

Author Name
Respect Gwenzi
Author
Markets 4 months ago

Financial institution and investment holding company FBC Holdings Limited has launched a mobile merchant and bill payments option capping a year of solid market moving digital products release.

Since embarking on a digitisation program in 2018, the financial services group, has never been at its strongest than the current year. Earlier this year the bank went paperless, with automation of new accounts opening and several processes previously done manually or over the counter.

With the latest offering, onboarded customers can make payments without necessarily using their bank cards using digital avenues which include USSD Codes, Banking Apps and via a Whatsapp bot assistant. The product is essentially a mobile money service allowing for seamless mobile payments between customers and business as well as business to business, without the use of wallets.

“In simple terms, the new solution allows anyone with a bank account to make payments at churches (tithes), small to medium enterprises, vendors, tuck shops, barber shops, saloons, flea markets, among other merchants using a mobile device without the need to carry a physical ATM Card. Individual FBC Account and non-account holders are not required to register, as merchant and bill payment services are available on mobile banking platforms,” the company explained in a press release.

The product will give mobile money providers such as Ecocash, Onemoney and TeleCash , a run for their money. Typically, these other services require their subscribers to move money from their bank into a wallet which sits with the mobile money provider before moving it to their intended recipient.

A direct transfer from bank to merchants would typically reduce the costs and the effort required to complete the transaction. It waits to be seen what the costs structures of the service will be, but all else being equal costs of transacting would come down thus increasing the product’s edge to traditional providers of mobile money.

The company’s acting head of marketing, Roy Nyakunuwa said that the primary motivations for this move were to assist in the battle against COVID 19 while simultaneously making further strides in the digital direction.

“In the wake of the highly contagious coronavirus, handling banknotes, touching surfaces and not maintaining social distance amongst other factors increase the risk of Covid-19 transmission. Consequently, as a customer-obsessed and health conscious institution, we have seen it fit to offer a mobile payment platform as part of our digital transformation thrust and our quest to keep pace with global and local standards in the financial services sector.”

However, the underlying business and profit potential of the development cannot be overlooked.

In the year ended 29 February 2020, Mobile money and banking services done through Ecocash and Steward bank respectively made over ZWL$4 billion in revenue for Cassava Smartech, accounting for almost 90% of the group’s total revenue.

Although in the subsequent months profits were affected by some restrictions placed by government on mobile money operators to flag down inflation and the run-away exchange rate, the business remains profitable and under exploited.

Equity Axis News.


Stock Market ● 1 day ago
Runaway Inflation Drags GetBucks Opex To New Heights

ZSE-listed microfinancer GetBucks posted a ZWL 45 million loss for the year ended December 31st 2020 following a hyperinflationary financial year. The Covid-19 pandemic compounded the Bank's losses in the period, with operational expenditure ballooning to ZWL 160 million at the end of 2020, up from ZWL 115 million in the 2019 financial calendar. Inflation on the other hand closed the year at a rea...


Stock Market ● 3 months ago
Stocks falter in early trades of the year

ZSE Daily Comment 06.01.21 *Performance Charts incl (ZSE indices, ZSE Value Traded, Interbank) The ZSE ended the tumultuous 2020 at record highs, only to plunge on the first session of the year on Monday. The local bourse has largely been sailing in tandem with global markets. At the close of business today, global stocks had collectively slipped amid a fresh wave of the novel, Corona virus, whi...

Markets ● 3 months ago
Old Mutual Exchange Traded Funds lists on the ZSE

Old Mutual ETF debuts on the ZSE Makes history as the first ETF to be traded on the ZSE More ETF listings expected in the near future Old Mutual became the first entity to successfully list and trade Exchange Traded Funds (ETFs) on the Zimbabwe Stock Exchange, after trades valued at $4,74 million were completed as the market resumed post holidays. Prior to the introduction of ETFs, the ZSE...

Markets ● 4 months ago
Powerspeed shareholders okays delisting

Shareholders voted to cut ties with the ZSE at an EGM The company had previously lamented that their listing was no longer beneficial The company will now proceed to buy back shares from minority shareholders The shareholders of electrical and hardware supplier, Powerspeed Electrical limited have approved a proposition to delist from the local bourse on the basis that it is no longer benefi...

Stock Market ● 4 months ago
PPC Zim records increased first half sales and earnings despite economic challenges

Harare – Regional cement manufacturer, Pretoria Portland Cement (PPC) says although trading conditions in Zimbabwe were characterised by a challenging economic environment and the impact of COVID-19 related lockdown restrictions, domestic cement volumes grew by 5% to 10% in the first half of its 2021 financial year supported by ongoing infrastructure projects. Headquartered in South Africa, PPC a...