- TN CyberTech Bank Limited, formerly Steward Bank, is set to become Zimbabwe's first neobank
- Neobanks are fully digital institutions without physical branches, providing banking services through mobile apps and online platforms
- Target to reduce the ratio of staff costs to revenue to below 10% in the medium term
Harare-TN CyberTech Bank Limited, formerly known as Steward Bank, is set to become Zimbabwe’s first neobank, according to EcoCash Holdings’ latest full-year financial statement for the year ended 28 February 2025.
The move comes as part of the banks second phase strategy to lower operational costs by reducing the number of staff and converting traditional branches into technology-driven service centres.
‘’The next phase of staff rationalisation will be implemented through the conversion of traditional banking branches into high technology customer service centres and the conversion of former branch staff into Banking Agents.
‘’Our target is to reduce the ratio of staff costs to revenue to below 10% in the medium term,’’ Steward Bank chairperson James Mushore said.
A neobank is a fully digital financial institution that operates without traditional physical branches, delivering a wide range of banking services through mobile applications and online platforms.
Unlike conventional banks, neobanks prioritise seamless user experiences, offering intuitive interfaces, low or no fees, and innovative features such as real-time transaction notifications, automated savings tools, and personalised financial insights.
Globally, neobanks like Nubank and Revolut have disrupted the financial sector by catering to digital savvy customers and underserved populations.
In Zimbabwe, where economic volatility has diminished trust in traditional banking, TN CyberTech Bank’s neobank model aims to provide accessible, efficient, and cost-effective solutions tailored to a population increasingly reliant on digital platforms.
EcoCash has devised a comprehensive three-pronged strategy to establish TN CyberTech Bank as a trailblazing neobank.
First, the group plans to convert its traditional banking branches into advanced digital service centres. In these centres, the roles previously performed by human staff such as account openings, deposits, and customer inquiries will be handled by automated machines, enabling faster, more efficient service delivery.
The group will remodel its banking agency network, transitioning from human agents to machine based systems. This transformation allows agents to manage multiple locations without incurring significant staffing costs, expanding the bank’s reach into rural and underserved areas while maintaining a human touch through retrained former branch staff.
TN CyberTech Bank will also deploy its OMNI platform, a strong digital solution that empowers customers to conduct banking transactions at their convenience.
In terms of financial performance for the full year EcoCash faced challenges due to Zimbabwe’s hyperinflationary environment but achieved significant milestones that underscore TN CyberTech Bank’s potential.
The group reported a 17% revenue decline to ZWG892 million from ZWG1.1 billion, attributed to distortions from inflation accounting and currency volatility.
Interest income decreased to ZWG183 million from ZWG245 million, and non-interest income fell to ZWG708 million from ZWG827 million.
Despite these setbacks, deposits soared 214% to ZWG2.8 billion from ZWG892 million, reflecting growing customer confidence in the bank’s digital offerings.
Loans increased by 72% to ZWG902 million, signalling TN CyberTech Bank’s expanding role in credit provision.
Profit before tax surged to ZWG3.56 billion from ZWG498 million, and after-tax profit reached ZWG3.51 billion, up from ZWG352 million.
This remarkable profit growth was primarily driven by fair value gains from the group’s restructuring, including the disposal of non-core subsidiaries.
Looking ahead, the group remains optimistic about these strategies and expects to see results of the first strategy in the 2025-26 financial year.
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