Steward Bank in New Banking Model

Steward Bank, a subsidiary of Econet Wireless has introduced a new banking concept.

The new model, known as correspondence banking, is a system where a financial institution provides services on behalf of another equal or unequal, financial institution.

Through correspondence banking, the financial institution can conduct business transactions, accept deposits and gather documents on behalf of the other financial institution.

“Correspondence Banking, a concept common in America and other countries including Brazil, will allow customers, regardless of whether they bank with Steward Bank or not, to perform transactions such as withdrawals and deposits through the ZimSwitch platform as well as cashing in and cashing out from their EcoCash wallets,” the bank said in a statement.

“As the Bank already benefits from the synergies of the convergence of banking and mobile network operations through its partnership with Econet Wireless Zimbabwe, it will utilize the already existing EcoCash Agent network, which is the widest mobile money network in the country as well as ZimSwitch platform for service delivery.”

In addition to the traditional banking services, Steward Bank said customers would also be able to make bill payments such as DSTV and ZINARA subscriptions. Correspondence banking allows banks of all sizes to do business in other regions and countries without having to open a new branch.

Last year, Steward Bank introduced a “branchless” banking model which allows its clients to access banking services through agents without visiting a branch.

Clients would also be able to apply for debit and credit cards through the agents.