BY Melody Chikono
CASSAVA Smartech Zimbabwe says the drive towards digital transformation for improved efficiency and revenue generation remains its goal with the company continuing to focus on identification and development of opportunities in the market.
The opportunities are expected to be consistent with providing convenient digital solutions to the changing customer demands without compromising on service provision.
In a trading update for the period ending November 30 2020, Cassava company secretary Charmaine Daniels said the stable macro-economic outlook and promising agricultural season were all pointing to a brighter and stronger finish to the financial year.
EcoCash revenue registered a growth of 29% from the second quarter (Q2) mainly on the back of a tariff review which became effective in August 2020 but whose full impact was felt in third quarter (Q3). Active subscribers, however declined by 6% between Q2 and Q3.
“The company also launched a self-registration USSD platform which has seen significant uptake in the number of new customers subscriptions. We remain positive about a sustained volume and value recover in Q4,” Daniels said.
Revenue for Insuretech business grew 131% compared to Q2 driven by a strong growth in short-term insurance business which registered a 165% increase in Q2 revenues and the company’s high end comprehensive diverse product portfolio which spans across all industry segments with a specific focus on agriculture.
In a recent publication by Insurance and Pensions Commission (Ipec), the company was placed in the top 10 insurers in Zimbabwe, which is recognition for a new entrant that has been in the insurance industry for only two years.
The life business recorded a decline in terms of policies underwriting following the suspension of some EcoCash services for premium payments by community groups. The business is in the process of redesigning payment gateways to ensure all customers have access to the flexible payment options that existed before the suspension of the previous models of payments.
The new transaction limits on EcoCash also affected invoices greater than $5 000. Daniels said the company also marked a great improvement in banking services in Q3 exiting the period at 81% revenue growth compared to Q2.
This was primarily underpinned by a 166% growth in interest earning assets from Q2 as a result of the bank adopting a more aggressive lending strategy targeted at quality borrowers in line with the bank’s credit risk management framework.
Mobile banking customers registered a 5% growth, reflecting a comeback on customer activity.
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