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Tinashe Makichi Business Reporter
ANALYSTS have urged banks to provide products that are easily accessible to people in order to reinvigorate depositor confidence that was lost in the hyperinflation era. In Zimbabwe’s financial sector, depositor confidence continues to be under threat on the back of bank closures and the placement of some financially troubled institutions under curatorship.

In an interview with Herald Business, economic analyst Mr Joseph Sagwati said development of banks in the post-dollarisation era was cosmetic and there was need for a complete revamp of banks in terms of strategies in order to bring back depositor confidence.

“Many banks moved towards Internet and mobile banking after Government said banks should, effective from January this year, give 4 percent interest on deposits of at least US$1 000 held over 30 days.

“This movement to mobile banking speaks volumes on why banks should change their banking strategies,” he said
He added that banks should be at the forefront of bringing requisite financial technology in order to match with the global competition.

“With research showing that more than five banks have closed operations since 2004, and the problem emanates from irregular dealings within the financial sector banks should bring requisite financial technology that makes sure transaction becomes attractive to deposit,” he said

“In addition, banks should make sure that there is consummation of people-centred products at low cost,” Mr Sagwati added.
He said: “The change of local banks in terms of survival sits upon banking products that are easily accessible to the common man around a cellphone handset.”

“The sovereign risk tag around banks should be taken away so that banks should be in a position to access lines of credit from outside.
“Banks should be recapitalised at the same time, interest to each and every deposit and savings accounts should be given,” he added.

Although relevant authorities have assured stakeholders of workable policies to monitor the operations of the banking industry, the recent exposure of Interfin Bank as well as Genesis Investment Bank to serious funding problems has raised questions on the commitment by regulatory authorities to facilitate a safe and sound banking climate.

On the financial market there has been competition this year with the coming of Steward Bank, South African-owned Stanbic, MBCA, and international banks like Barclays and Standard Chartered. Other big banks include CBZ Bank, FBC Bank, ZB Bank and NMB Bank.

According to the Reserve Bank of Zimbabwe’s May 2013 monthly economic review, the value of mobile and internet-based transactions rose from US$283,6 million in April to US$364 million in May 2013, while the total value of card-based transactions rose by 1, 3 percent from US$328,2 million in April to US$332,6 million in May 2013.