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Harare - Zimbabwean telecoms firm Econet Wireless this week launched what could be an African first - a product that will allow people to use cellphones to bank their money and earn an interest.
Up to now, mobile phones have been used mainly to transfer funds as well as to make payments.
However, the new product, called EcoCashSave, is unique in that it allows subscribers to earn a 4% interest on the money deposited into their accounts.
Speaking at the launch of the product this week, EcoCash CEO Curtbert Tembedza said the new product gives customers an opportunity to earn 4% interest on as little as a US$1 deposit made for more than 30 days.
Currently the memorandum of understanding between local banks and the Reserve Bank of Zimbabwe requires banks to pay an interest of 4% for time deposits of $1 000 and above held over a period of at least 30 days.
This makes it unattractive for low income earners to make deposits into banks.
The EcoCash product is expected to offer relief to the majority of Zimbabweans, who operate in the informal sector and do not have the required payslips for opening bank accounts.
The Zimbabwean informal sector reportedly constitutes 80% of the economy.
Statistics from the Reserve Bank of Zimbabwe show that only 853 000 out of the 13 million Zimbabweans have bank accounts.
The new account will operate without any ledger fees, no minimum operating balance and no charge on deposits.
Phone numbers will be used as account numbers while the money will be banked in at Steward Bank, also owned by Econet Wireless.
EcoCash already has about 7 000 agents that will take deposits from the public.
Up to now, mobile phones have been used mainly to transfer funds as well as to make payments.
However, the new product, called EcoCashSave, is unique in that it allows subscribers to earn a 4% interest on the money deposited into their accounts.
Speaking at the launch of the product this week, EcoCash CEO Curtbert Tembedza said the new product gives customers an opportunity to earn 4% interest on as little as a US$1 deposit made for more than 30 days.
Currently the memorandum of understanding between local banks and the Reserve Bank of Zimbabwe requires banks to pay an interest of 4% for time deposits of $1 000 and above held over a period of at least 30 days.
This makes it unattractive for low income earners to make deposits into banks.
The EcoCash product is expected to offer relief to the majority of Zimbabweans, who operate in the informal sector and do not have the required payslips for opening bank accounts.
The Zimbabwean informal sector reportedly constitutes 80% of the economy.
Statistics from the Reserve Bank of Zimbabwe show that only 853 000 out of the 13 million Zimbabweans have bank accounts.
The new account will operate without any ledger fees, no minimum operating balance and no charge on deposits.
Phone numbers will be used as account numbers while the money will be banked in at Steward Bank, also owned by Econet Wireless.
EcoCash already has about 7 000 agents that will take deposits from the public.
