BANKS in Zimbabwe should tailor packages that attract the low income population to increase deposits levels, which have been identified as one of the structural challenges facing the economy, a leading financial institution has said.

In a statement, CBZ Bank said the challenge of low national savings would remain unless financial institutions made their systems to cater specifically for the low income earners in the country.

“Low national savings levels have been identified as one of the structural challenges facing our economy,” it said.

“This economic hurdle must be overcome if the short term nature of deposits in the banking system is to be addressed. This can only be addressed if as a nation we develop a culture of saving, students and the informal sector included,” it added.

CBZ Bank has itself tailored an account that is suited for the informal sector through a raft of measures that place little emphasis on specific amounts in the account.

“The financial inclusion policy adopted by the bank has seen it launching the SmartCash in December 2014, which has no minimum balance, no service fees and low transaction costs,” it said.

The informal sector, which has become the prime employment hub for the country, is generally unable to afford most banking products as they have high fees which are not favourable to its low income earners. This has led to billions of dollars circulating outside the formal banking system. – New Ziana.

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