By Nomthandazo Gabi
DIVERSIFIED digital technology group, Cassava Smartech Zimbabwe Limited’s, Insurtech services arm has recorded revenue increase of about 131% for the third quarter ended 30 November 2020 compared to the prior quarter, buttressed by growth in short term insurance business, which registered a 165% increase in the prior quarter.
However, the life business recorded a decline in terms of policies underwritten following the suspension of dome EcoCash services for premium payments by community groups.
Improvement in banking services was recorded in the third quarter, to close at 81% revenue compared to the second quarter primarily underpinned by 166% growth in interests earning assets from the second quarter.
The banking arm also adopted more lending strategies, which targeted borrowers in line with bank’s credit risk management framework and mobile banking customers recorded 5% growth, which is a reflection of a comeback in consumer activity.
Despite recent regulations on mobile money transfers by the central bank, revenue from the country’s leading mobile money service provider, EcoCash, grew by 29% for the same period under review. Cassava sights the growth as a result of the tariff review which became effective in August 2020, but whose full impact was felt in the third quarter.
However, active subscribers declined by 6% between the second quarter and third quarter. The firm highlights that the launch of a self-registration USD platform has, however, seen a significant uptake in the number of new customer subscriptions.
The group noted, “If the economy continues on this positive trajectory into the fourth quarter, we expect to see recovery across all our business units.”
Cassava offers innovative and inclusive mobile micro-insurance solutions covering Funeral, Auto, Education and Health. With a population of over a billion in Africa and less than 10% insured, the concept of insurance is still under-developed, with untapped opportunities in micro-insurance.