Fintech companies contribute 80% of revenue to Ecocash
By Alois Vinga
Listed diversified technology group, Ecocash Holdings Zimbabwe Limited (EHZL), says 80% of its revenue has been contributed by Financial Technology (FinTech), indicating the impact of technology as a modern force in driving business.
Presenting the group’s financial results this week, EHZL chairman Sherree Shereni said in the period ending 28 February 2022 much of the revenue was driven by FinTech.
“The Fintech businesses remained the largest contributor to revenue at 80%. The contribution from the Insurtech business was 14%, down slightly from the previous year’s 15%, and Vaya Technologies ended the year with a 6% contribution.
“Management will continue to adapt the business units’ operating models to both grow and diversify their revenue streams,” she said.
EHZL growth resonates with global trends, which currently show that the FinTech sector is registering tremendous growth.
The global market was valued at around USD 7.3 trillion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 26.87% until 2026, according to Research and Markets, on the back of increased investment in technology-based solutions, supportive government regulations and the growing use of Internet of Things (IOT) devices, among other factors.
Before the coronavirus (COVID-19) pandemic, FinTech adoption was doubling every two years, according to the Global Fintech Adoption Index 2019.
It increased from 16% percent in 2015 to 64% in 2019 – and the growth continued throughout the crisis.
The pandemic was a game changer, with FinTech as a core enabler of digital payments as consumers rapidly migrated to contactless and online commerce. As the global economy shifts from “reacting” to “recovering,” new opportunities will arise.
Meanwhile, during the period, EHZL delivered a commendable performance once again, with group revenue ending at ZW$29.9 billion, 26% above fiscal 2021 earnings of ZW$23.8 billion.
“The Group is optimistic about the future and will drive financial inclusion by leveraging the power of our digital platforms and partnerships.
“Our diversified group will continue to produce cutting-edge inclusive solutions and will extend our fintech solutions to agriculture, education, healthcare and financial services, through the use of artificial intelligence (AI), big data, blockchain and machine learning.” Shereni added.
