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ECOCASH yesterday launched a new banking product which allows subscribers to open and operate accounts at flexible terms compared to conventional banks.Known as EcoCashSave, the product could give commercial banks a run for their money as it allows registered subscribers to open accounts without going through the hassles of filling in forms and submitting a variety of documents.

EcoCashSave accounts will initially be housed at another Econet subsidiary, Steward Bank, although it will also be open to other commercial banks.

EcoCash chief executive Mr Cuthbert Tembedza told journalists that no bank charges would be levied for transactions conducted using the new product, with deposits initially attracting an interest of 4 percent per annum.

“It is different in that your phone number is your bank account number and there is no minimum withdrawal or deposit,” he said.
The product, which is highly flexible, allows access to deposits, withdrawal and transfer of cash all day long and is likely to present serious competition especially to smaller banks which are struggling to provide incentives for clients to adopt a saving culture.

With EcoCashSave, subscribers can deposit amounts as little as US$1 in their accounts while the bank balance can be reduced to zero unlike in banks which demand minimum amounts ranging from US$5 to US$20 as balances.

EcoCash currently has over three million subscribers, meaning EcoCashSave could easily become the highest subscribed banking product in a country which has less than one million bank accounts.

Econet Wireless chief executive Mr Douglas Mboweni said the product would help demystify bank accounts especially for the informal traders and rural dwellers.

“We have demystified that, anyone can have a bank account,” he said, adding that the product allowed the mobile telecommunication firm to fully utilise investments it had made in its network.

EcoCash Services chief executive Mr Darlington Mandivenga said Steward Bank was the first to operate the EcoCashSave accounts as it was the holder of the mobile money licence.

“This is a service that will also be available to other financial institutions but Steward Bank is first because they are the holders of the mobile money licence,” he said.

Steward Bank chief executive Mr Kwanele Ngwenya said the bank had worked hard to convince the Reserve Bank of Zimbabwe to allow EcoCashSave account holders to open their accounts without going through the rigorous process as in commercial banks.

Mr Ngwenya, who described EcoCashSave as a “super banking product”, said it would enable more people to own banks accounts as well as promote a culture of savings.

“Steward Bank has brought banking to the unbanked,” he said. — New Ziana.