Introduction

The world has experienced and continue to experience a surge in technological innovations that

have greatly changed the digital landscape and the way economic agents provide services and

products (Reserve Bank of Zimbabwe (RBZ), 2019). The banking sector is using these

technological innovations to improve efficiency, reduce financing costs and improve

convenience, the speed of service delivery, and the quality of information provided to end users

of these services (Bara, 2016). As a result, Zimbabwe has witnessed a considerable part of the

technological growth in the banking industry, including the cryptocurrency, mobile banking,

agency banking and internet banking revolution (RBZ, 2019). Therefore, multiple regulatory

agencies around the world have begun to research and explore various methods of regulating the

industry in a way that balances innovation, inclusiveness and stability. Given that technological

innovations have the potential to improve efficiency, reduce business costs and promote financial

inclusion as well as the challenges faced by financial institutions in implementing technological

innovations, RBZ took the lead in developing a National Fintech framework to guide adoption,

regulation and implementation of technological innovations in this sector (RBZ, 2019).

This essay therefore provide an analysis of the major major technological innovations that have

taken place in the banking sector of Zimbabwe for the past years since 2015 using a case study of

Steward Bank. The aim of this aim of this essay is to determine the most significant

technological innovations suitable for the prevailing environment of Zimbabwe. It will further

show how the technological innovations have encouraged business growth or new business

creation, challenges faced in implementing the technologies, their solutions as well as

recommendations to address the prevailing problems.

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Trends and rate adoption of technological innovations at Steward Bank (2015- 2019)

Over the past five years, several technological innovations have been witnessed at Steward Bank.

The continued implementation of new technological innovations is due to increased competition

in the sector. Constant implementation of new technologies by the bank premised on the bank’s

vision to provide customized innovative world class products and services through convenient

channels and technologies (Steward Bank, 2020). In addition, innovation is one of the bank’s

values as the bank pursues to innovate and constantly develop life-changing financial products

and services that produce value for customers (Steward Bank, 2020). Thus, several technological

innovations have been launched and these include Smart Automated Teller Machines (ATMs),

Square Banking, Kwenga mobile Point of Sale (mPOS) and WhatsApp banking among others.

Table 1 summarizes some of the major technological innovations undertaken by the Steward

Bank since the year 2015 to 2019.

Table 1: Major technological innovations at Steward Bank Zimbabwe

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The management of Steward Bank has complimented the customers for accepting and adopting

the technological innovations provided by the bank (Steward bank, 2020). This increased uptake

of the innovations by various stakeholders has resulted in the bank to continue offering new

technologies to meet the dynamic and changing needs of the customers as well as to fight the

stiff competition in the sector. However, it has been found that the majority of the customers

adopting the technological innovations where the young people aged between 25 and 55 years.

This category account for the majority of the market share and also represent the working

population majority for Zimbabwe. Figure 1 below illustrates the technology adoption curve for

Steward Bank.

Figure 1: Technology Adoption Curve for Steward Bank

Source: Steward Bank (2020)

As shown in Figure 1, the technology adopter categories for the bank are according to the age
category of the customers and the customer segment of those aged between 25 and 55 represent
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the early adopter and early majority for technological innovations of the bank whilst the late
majority or late adopter customer segment is represented by the few above the age of 55 years.
Low uptake of technological innovations was found to be high amongst customers aged above
the age of 55 according to a market survey conducted by the bank’s marketing team.

Impact of the Technological Innovations by Steward Bank

These technological innovations by Steward Bank have been found to have brought positive

outcomes to the government of Zimbabwe, to the bank itself, to the employees, customers and

businesses. According to the chairman’s statement in the Steward Bank (2018) annual report, the

introduction of the Kwenga mPOS made business operations for small to medium enterprises

(SMEs) in Zimbabwe as it made life easier for the small businesses following the prevailing cash

crisis that has resulted in customers embracing mobile banking services. The technological

innovations have increased the customer base for the bank as well as improved financial

performance of the bank. As highlighted in the Steward Bank (2018) report, the bank has

realised significant revenue growth and market share growth and this was attributed to the

innovative products and services offered by the bank referring the technological innovations as

the cost management tools.

According to Adams (2019) technological innovations by the Steward Bank has resulted in

enhanced financial inclusion and this is economic growth spillover effects for the Zimbabwean

economy. To the customers, the innovative products being provided by the bank have resulted in

increased convenience where customers can access financial services anywhere, anytime.

Adams (2019) also found that the Kwenga mPOS provided the previously excluded SMEs and

informal business operators such as street vendors and public transport operators the platform to

to fully accept electronic payments by customers. The introduction of the Kwenga mPOS in

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January 2018 resulted in most small business operators rebounding back into the market as they

have been thrown out of the market following the cash crisis in Zimbabwe (Adams, 2019).

Technological innovation implementation challenges and solutions

According to the Steward Bank (2017) report, the current infrastructures, systems and processes

at the bank branches across the country lack functionalities to effectively and efficiently cater for

innovative banking services. This has been resulting in failure of the systems to deliver financial

products and services to customers as well as resulting in delayed implementation of new

technological innovations. However, the bank has been making efforts to keep upgrading the

existing infrastructures and systems as well as installing new infrastructures and systems that

support technological innovations (Steward Bank, 2017). According to the chairman’s statement

in the 2017 report, temporary stabilisation measures have been implemented to address technical

issues and to improve the status of the Information and Communication Technology (“ICT”)

infrastructure. In addition, major upgrades of the core banking systems were initiated to offer

additional capacity and long-term stabilization and this partially addressed some of the

technology implementation challenges for the bank (Steward Bank, 2017).

Lack of internet coverage as well as high internet costs for customers was also cited as one of the

challenges affecting successful implementation of innovative technologies by the digitalized

Steward Bank. During a pilot survey prior and immediately after the launch of agency banking

by Steward Bank indicated that few customers embraced the new innovation technology as the

majority cited lack of internet connectivity and high internet costs. However, this challenge was

immediately addressed as the bank entered into partnerships and strategic negotiations with

mobile and internet service providers such Econet Wireless, TelOne, ZOL Fibronics, Liquid

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Telecom to ensure uninterrupted internet connection as well increased broad internet coverage

especially to remote rural areas (Steward Bank, 2017). In addition, to the internet coverage and

costs issues the bank also resolved to provide customized technological innovative products such

as Kambudzi Banking that do not require any internet connection.

As also highlighted in the chairman’s statement in the Steward Bank (2018) report, the bank also

faced temporal challenges whilst introducing the innovative Kwenga mPOS as there was low

uptake of the technological innovation due to its cost. A survey conducted by the Steward bank

team in SMEs in Mbare Magaba revealed that the low uptake of the mPOS was that it was

unaffordable to most of the entrepreneurs, public transport operators, sole traders and street

vendors in the informal sector. However, the bank decided to offer the mPOS devices on credit

terms and also encouraged the SMEs to form small groups so that they could purchase the

Kwenga mPOS devices as a group of people in business (Steward Bank, 2020).

The management of the bank also highlighted in the Steward Bank (2018) annual report that the

introduction of the Kwenga mPOS device faced some resistance from customers as it was

launched without enough consultations and awareness programs conducted. However, the

management acted proactively by placing adverts across various platforms that included the

media, Internet and use of marketing agents to reduce the resistance and this resulted in an

increase in the uptake of the innovative product (Steward Bank, 2020).

Recommendations to the ICT management management at Steward Bank

Basing on the analysis, several recommendations have been made to the management at Steward

Bank Zimbabwe. The management is recommended to continue seeking private partnerships

with other stakeholders that include internet and mobile service providers and vendors or

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suppliers of technological innovations. In addition, the management also need to ensure that new

technological innovations will cater for all the customer groups for example they should offer

innovative products that are affordable to all customers. The management of the bank also need

to ensure that the ICT infrastructure and systems are constantly upgraded to match the pace of

technological adoption by the bank. Moreover, the bank should always conduct pilot surveys

across its stakeholders particularly customers prior introducing new technological innovations to

create awareness among the customers as well as to hear from their side their opinions regarding

the innovation. This will help in driving increased uptake of the technology by the customers.

Conclusion

In a nutshell, the essay has indicated the technological innovation trends for the banking sector of

Zimbabwe drawing some lessons from the Steward Bank for the past five years since 2015. The

major technological innovations that have been undertaken by the bank over the past five years

have been identified and these include WhatsApp banking, Square Banking, Kwenga POS and

Smart ATMS. These have been found to have enhanced financial inclusion, enhanced easy of

doing business, promoted business growth as the period witnessed a significant growth of the

SME sector as well improved profitability of the bank. The technological innovations

implemented by Steward Bank have been up hailed for being applicable to the prevailing

economic environment in Zimbabwe characterised by liquidity crisis and cash crisis.

Besides, it has been noted that like other organisations, Steward Bank faced some challenges in

implementing the technological innovations such as lack of supporting infrastructure,

government regulations, lack of financial support and low internet coverage. However, with all

these challenges the bank managed to successfully implement several technological innovations

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by adhering to the government regulations and strengthening partnerships and alliances with

infrastructure or service providers such as Econet Wireless, Cassava Smartech Zimbabwe,

TelOne and Liquid Telecom among others. Therefore for the bank to continue implementing

technological innovations recommendations have been provided for the management to take

note.

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References

Adams, S. (2019). Effects of mobile money innovation on the performance of

Commercial bank services .Case of Steward bank (Unpublished Dissertation, BUSE)

Bara, A. (2016). Diffusion and adoption of bank financial innovation in Zimbabwe: An external

factor analysis. African Journal of Science, Technology, Innovation and Development,

8(4), 357–368. 

RBZ, (2019). Reserve Bank of Zimbabwe. [Online]. Available at:

https://www.rbz.co.zw/index.php/research/fintech [Accessed 21 October 2020].

Steward Bank (2017). Unaudited Abridged Financial Report for the Six Months Ended 31

August 2017. [Online]. Available at:

https://www.stewardbank.co.zw/sites/default/files/Steward%20Bank%20half%20year

%20result%2031%20August%202017%20FINAL.pdf [Accessed 21 October 2020].

Steward Bank (2018). Unaudited Abridged Financial Report for the Year Ended 31 December

2018. [Online]. Available at: https://www.stewardbank.co.zw/sites/default/files/Steward

%20Bank%2031%20December%202018%20.pdf [Accessed 21 October 2020].

Steward Bank (2020). Steward Bank Official Website [Online]. Available at:

https://www.stewardbank.co.zw. [Accessed 21 October 2020].