Assessing the social impact of digital financial services innovation towards poverty reduction through micro-credit, access to digital savings and digital insurance services

14 JULY 2016

Presented by: Eddie Chibi ECOCASH ZIMBABWE

LOOK UP ZIMBABWE, THE FUTURE IS BRIGHT!

“We have just began our new refreshed journey of hope. I am excited to present to you our new brand. It is a mark *of authority, a stamp of excellence and a promise of execution. Most importantly, it carries a message of hope and an

exhortation to Look Up …the future is bright.” Douglas Mboweni CEO Econet Wireless Zimbabwe

DIGITAL FINANCIAL SERVICES INNOVATION“Unbanked people are increasingly gaining access to financial services through digital channels. Banks, microfinance institutions, mobile operators, and other providers are using mobile phones and point-of-sale devices, along with networks of small-scale agents, to offer basic financial services at greater convenience and lower cost than traditional banking allows. Also referred to as “Agent” banking, these digital services offer great promise for better serving poor customers.”

Source: CGAP – Digital Financial Services

LAYING THE FOUNDATION

• 9.2m customers• 6.0m Ecocash customers• 1.5m Ecocash$ave A/C holders• 35,000 airtime vendors• 26,000 Ecocash Agents• 20,000 Ecocash merchants • 2,000 Brand Ambassadors• 1,200 Green Kiosks issued Free• 3,114 Billers & Payroll partners• 250 branded shops • Widest 2G, 3G, 4G, Wi-Fi & Fibre

coverage

ECOCASH SOCIAL IMPACT

…over 6 million registered customers, equal to 70% of

Zimbabwe’s adult population

…$16 billion value + 622m volumes transacted since

launch

…adults with access to formal financial services increased

from 18% to 69% after EcoCash launch

1.5 million savings accounts vs. 1.5m bank accounts in Zimbabwe

…450,000 debit cards issued

…over 50,000 entrepreneurs operating as agents &

merchants across the country

2014 (After EcoCash)

2011 (Before EcoCash)

0% 10% 20% 30% 40% 50% 60% 70% 80%

69%

18%

Adults Formally Financially Served

…EcoCash ta!

ECOCASH PRODUCT INNOVATION LIFECYCLE

Early Stage Growth Stage Adoption Stage Consolidation Stage

1-2Years 2-3Years 3-4years 4 Years +

Stag

e of

Inno

vatio

n

• Digital savings and micro-credit were launched within the growth and adoption stage

Money Transfer

Airtime

Cash in

Cash out

Offline Pay bill

Banking Services

Online Biller

EcoCash Save

Bulk Pay

EcoCash loans

EcoCash Payroll

Remittances

Debit card

Save Plus

EcoShopper Languages

Group Savings

EcoCash App

Contactless Card EcoCash Ta!

Merchant Payments

Bulk Payments

Remittances

Airtime

Interoperability

Agent Management

Customer Management

Customer Activity

DIGITAL INSURANCE SERVICES

• Using Technology to drive adoption of micro insurance – 1.2m unique Registered subscribersTechnology

• 16% of adult population insured under EcoSure• According to FinScope, as at 2014 (before EcoSure) only 26% of the adult population had formal

insurance. • With only 1.5 years of operation, EcoSure has already managed to insure over 61% of what all

traditional insurers have covered.

Execution

• ZFU insurance package• Ecofarmer Insurance product

Farmers Inclusion

• Transforming the traditional Burial Societies into formal insurance Innovation

DIGITAL SAVINGS

Thank you