NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, February 11, 2016

The Reserve Bank has approved the adoption of agent banking by financial institutions as part of efforts to increase access to financial services, governor Dr John Mangudya said.

Services that will be offered by the banks include cash deposits, withdrawals and loans.

The lack of extensive bank networks has resulted in many Zimbabweans, particularly those in the rural and marginalised areas failing to access valuable financial products. The model will help banks reduce the costs associated with the brick and mortar model.

With 67 percent of Zimbabweans living in the rural areas, there is huge scope for financial institutions to increase their presence in the traditionally marginalised market.

“Increasingly, agent banking and e-banking are being recognised as efficient and cost effective delivery channels of financial products and services,” said Dr Mangudya in his Monetary Policy Statement.