Zimbabwe mobile financial services growing

Published: 26 September 2013

The expansion of Eco-Cash operations is an indication that mobile financial services are increasingly being adopted by the greater part of the population in the country.

Mobile financial services have the power to increase gross domestic product (GDP). In a study conducted by Boston Consultancy Group, for emerging markets, mobile financial services have the power to increase GDP by up to 5 percent.

This GDP growth may be stimulated by increased access to credit, which prompts new business creation, as well the benefits of formal remittances and increased savings.

Fears rose in the banking sector as it saw the emergence of Mobile financial services as a threat to their business, this is not the case.

Mobile financial services is not intended to replace today's banking model, but rather, to supplement it and to allow more people to access and participate in financial services.

Telecommunications companies have a unique advantage in bringing mobile financial services to the people who traditional banks have difficulty reaching.

According to BCG's study, mobile financial services lowers the barriers to adoption, through reduced entry cost, reduced service price and more suitable products.

This enables more people to access needed financial services in a cost-efficient and relevant way.

Therefore other financial institutions such as the insurance service and banking sector should see mobile financial services as a bridge to reach a greater market share and formulate strategies on how to effectively use the platform for the growth and benefit of their own business.
- herald

Tags: EcoCash,