Problems faced by the Zimbabwean Banking Industry

Operating a bank in Zimbabwe is the hardest thing one can ever do. There are endless challenges that glare at Zimbabwean Bankers and having them operating at present is a miracle.

The first Challenge faced by Banks in Zimbabwe sanctions. Sanctions have particularly hit the sector with so much ferocity if one is to look at it. Other international Banks were barred from operating with Zimbabwean Banks and if they were contrary, they receive hefty fines and since the Worldwide banking industry works through relations with other institutions the Banks lost lucrative relationships, foreign currency and profits in these relations. Over 100 of such relations have been lost in the past decade alone.

The second problem coming from home is the fact that During the hyperinflation era, hundreds of thousands of Zimbabweans lost their savings and pensions to inflation and there was never any plan to compensate them which in turn killed all faith in Zimbabweans leading to the current of not saving. People do not trust banks with their money anymore and this denies banks of huge sums of money

Owing to the prominence of mobile money in Zimbabwe as a response to the cash and financial crises banks do not have access to the sums of money that move around people every day as their processes take more time. Banks do not enjoy any charges because they are left out of the equation. The list of challenges for Zimbabwean banks is endless and there is a lot that needs to be done to reduce their plight.

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