Fintech in Zimbabwe: A Pathway to Financial Inclusion

Introduction

Zimbabwe’s fintech industry has been gaining momentum, offering opportunities for financial inclusion and growth. This report explores the state of fintech in Zimbabwe, highlighting key points, recommendations, and the potential for innovation.

Key Points

Fintech’s Return on Equity

• In 2018, fintech companies combined made a profit of $425.3m.
• The return on equity was a healthy 20.6%.

Lack of Collaboration

• Large financial institutions are not collaborating with fintechs, hindering data sharing and innovation.

Interoperability and Shared Services

• Banks need to adopt a technology-led approach to compete with mobile money operators.
• Collaboration between banks and fintechs can help banks innovate faster.

Fintech Opportunities

Agent Networks

• Fintech generates opportunities for low-cost, wide-scale agent networks to extend financial access and improve service delivery at the last mile.

Microfinance Sector

• The micro-finance sector in Zimbabwe has a small loan book, equivalent to about 1% of GDP.
• Fintech has the potential to alleviate some of the challenges faced by MFIs.

Recommendations

Encourage Collaboration

• Encourage large financial institutions to collaborate with fintechs to facilitate data sharing and innovation.

Invest in Technology

• Invest in technology to improve interoperability, agent networks, and digital management information systems (MIS).

Foster a Culture of Innovation

• Foster a culture of innovation within the banking sector and encourage experimentation with new technologies and business models.

Conclusion

The report highlights the potential of fintech to drive financial inclusion and growth in Zimbabwe. By embracing collaboration, investing in technology, and fostering a culture of innovation, the country can unlock its full fintech potential and improve the lives of its citizens.