The Bankers Association of Zimbabwe estimates that over US$2,3 billion is in the informal sector.
Tawanda Nyambirai, TNH group CEO told a meeting of shareholders on Thursday the business model aims to mobilise deposits in rural areas and target the retail sector’s expansive distribution network.
TNH wholly owns TN Bank, TN Medical Benefits Fund, TN Harlequin Luxaire, TN Financial Services and TN Asset Management.
Nyambirai said only innovative and adaptive banks would survive in the ever-changing financial services sector as non- providers of financial services were exploring new growth areas and new income, as they leverage on their distribution network.
“Our model is premised on three aspects. Firstly, it deals with delivery channels, secondly it comes up with strategies to deal with competition from non-providers of financial services such as utilities and thirdly, devising new asset classes that are able to deal with confidence issues,” he said.
With regard to asset classes, Nyambirai said Zimbabwe’s unbanked sector needed confidence that there was substance underlying a banking institution.Nyambirai said delivery channels had to be as efficient and relevant to the new generation of young people as they found ways of ridding themselves of the inconvenience of visiting a bank.
The bank’s business model focuses on virtual banking solutions using Information Communication Technology platforms to reach out to increasingly sophisticated and mobile clients hence delivering banking services at the client’s premises.
“We are working towards using a sustainable banking model that services the needs of the new generation,” he said.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
TN Bank deposits grew to US$53 million as at June 30 from US$33 million on December 31 2010. The bank is adequately capitalised in line with the central bank’s minimum capital thresholds of US$12,5 million.
Nyambirai said furniture business is not an end in itself but a tool “through which we mobilise deposits as people eventually become depositing customers”.
TN Holdings is already in partnership with Meikles departmental stores and Greatermans with the intention to leverage on consumer goods sold by the partners in order to capture depositing customers.
“Our reversal into Tedco was a full integration of our banking channels with those that deliver services needed by people every day,” Nyambirai said.
