Listed fintech company, Cassava Smartech posted an improved performance in the third quarter to November 30, 2020 as its insurtech division underpinned the good performance with a 131 percent jump in revenues.
Said the group in its latest trading update:
“Revenue for our Insurtech business grew 131 percent compared to Q2.
“This growth was on the back of strong growth in the short-term insurance business which registered a 165 percent increase on Q2 revenues and the company’s high-end comprehensive and diverse product portfolio which spans across all industry segments, with a specific focus on agriculture.
“Reflecting this, in the recent publication by IPEC, the company was placed in the top 10 insurers in
Zimbabwe, which is strong recognition for a new entrant that has been in operation in the insurance industry for only two years.”
The group’s life business recorded a decline in terms of policies underwritten following the suspension of some EcoCash services for premium payments by community groups.
“The business is in the process of redesigning payment gateways to ensure all our customers have access to the flexible payment options that existed before the suspension of the previous modes of payment. The new transaction limits on EcoCash also affected invoices greater than $5,000,” said the group.
Meanwhile, the group’s linchpin business – EcoCash – saw revenue growth of 29 percent from Q2, mainly on the back of a tariff review which became effective in August 2020.
Management said the full impact of the tarrif review was felt in Q3.
Active subscribers, however, declined by 6 percent between Q2 and Q3.
Cassava Smartech also launched a self-registration USSD platform, which has seen a significant uptake in the number of new customer subscriptions.
The group’s banking division posted an 81 percent revenue growth compared to the second quarter.
“This was primarily underpinned by a 166 percent growth in interest earning assets from Q2, as a result of the bank adopting a more aggressive lending strategy targeted at quality borrowers in line with the bank’s credit risk management framework.
“Mobile banking customers recorded a 5 percent growth in Q3, a reflection of a comeback in consumer activity.”