Because of the cash crisis, most banks have ceased the opening of new bank accounts, with exception of a few like Ecobank and Steward Bank which is happily drawing new depositors by the hoards.
The joining of Econet Shops would mean that Steward bank customers will have a number of places to withdraw their monies.
Steward Bank aims “to provide low-cost banking services to the poor who cannot afford to travel long distances to carry out banking transactions,” which is one of its three key reasons for introducing the agent banking model. With the joining of Econet Shops it means Steward Bank has just opened hundreds of branches overnight, which could not have been done back in 2000.
Steward Bank believes that by spreading the range of operation platforms available to its customers, as of this writing Total Zimbabwe,Zimpost and NUST are part of the Steward Bank and accessibility and ease of banking can be markedly enhanced. Naturally, accessibility and ease of banking translate to convenience.
Additionally, the agent banking model has the impact of extending banking hours since one can carry out transactions at any agent as long as they are open. Unlike traditional banks, agents are more flexible and at most times extend hours to seek differentiation and, therefore, compete among themselves.
According to Dr Lance Mambondiani ,as part of its restructuring exercise, Steward Bank shed off about 40% of its branch network choosing to deliver service to customers using the mobile channel. It might not be today, but the branch could be facing a “cassette player” type of extinction. No one believed back then that iTunes would become the most dominant force in worldwide music distribution.
Techunzipped