eBusiness Weekly
Business Writer
EcoCash in the first financial quarter of 2023, sees an increase of 2 percent in volumes compared to the previous quarter driven by the FinTech business segment that remains the highest contributor to revenues.
In a trading update the company said management continues to adapt business units’ operating models to both grow and diversify sources of revenue.
“During the period under review, significant exchange losses were recorded due to the weakening exchange rate with the local currency depreciating by 135 percent,” EcoCash said.
In the mobile money business EcoCash launched its Domestic Money Transfer, which is a convenient option of sending and receiving US dollars across the country. The company said the impact of this is expected in subsequent period as market adopts the product.
EcoCash said; “Growth of 38 percent was witnessed on wallet funding as customers continue to prefer mobile transactions over other payment platforms. The mobile money business also saw a 3 percent growth in transaction volumes when compared to the prior quarter due to an increase in customer activity.”
The mobile money business is expected to continuously improve its performance going forward driven by new innovations, product bundling within the Group and promotions to drive mobile payments.
According to the update, Steward Bank continues to leverage on its investment in technology, to deliver tailor made service and solutions to offer convenience and satisfaction to its wide range of customers.
“The bank’s interest-earning assets portfolio grew by 3 percent from the last quarter on the back of an increase in underlying business and customer deposits. In the first quarter, the bank launched the Foreign Currency Account (FCA) on Square, an innovation that digitises all FCA related transactions on Mobile App, allowing customers to transact through their phones,” it said.
According to the company, Steward Bank will continue to strengthen its revenue generating capacity, leveraging on its system upgrade to drive the Group’s digital banking model. Capital preservation will remain a priority, amid the rising inflation.
The FinTech company said Vaya Technologies’ growth continued to be anchored on the HealthTech business as demand for health services continues to be high.
“The HealthTech products are also being bundled with other group products as part of the Group growth strategy. Over 100,000 customers have been on boarded onto the MARS-EcoCash capitation model,” EcoCash said.
EcoCash noted that the operating environment in the country continues to be challenging across almost all sectors of the economy with inflation and exchange rate depreciation as twin challenges impacting the business. In the circumstances, the company assured its shareholders that it will accelerate its digital transformation strategy, focus on superior customer experience and cost containment.
In their outlook, the group’s performance will remain constrained by the deteriorating operating environment.
The trading update said; “We will continue to leverage on our digital platforms to innovate and meet the changing needs of our customers. We believe that we have the right products, strategies, and team to ensure that the business can weather the current challenges and emerge stronger as the economy recovers in future.”
