Old Mutual Digital Services a game changer

OLD Mutual Zimbabwe recently launched a new business, Old Mutual Digital Services, to consolidate its fintech ventures. In this interview with Arthur Matsaudza (AM), the managing director at the new unit, The Executive Magazine (EM) got some insights into the financial services giant’s intentions with the its latest progeny.

EM: Congratulations on you appointment as MD of Old Mutual Digital Services. What excites you as the new managing director of this new business unit?
AM: Thank you. It certainly is a new era, it’s an exciting challenge to spearhead the long-term growth strategy of Old Mutual Digital Services, the new fintech outfit here at Old Mutual Zimbabwe, or the business already better known as O’mari. What is even more exciting for me though are the prospects for the team and I to drive the industry forward and create positive mutual futures not just for the customers we serve but for all of our stakeholders. The reasons that keep our customers awake at night, are the reasons that wake us up every day to create a better everyday life for our customers.

Arthur Matsaudza

EM: What is the state of financial inclusion within Zimbabwe and how is the adoption of digital innovations driving financial inclusion, in your opinion?
AM: The level of financial inclusion in Zimbabwe is impressive, the enabling framework of National Financial Inclusion Strategy (NFIS) I and the efforts of financial institutions have resulted in increased financial penetration. Over a 10-year period, between 2011 and 2021, the share of individuals with bank accounts increased from 51 percent to 76 percent.
However, access to financial services is only one inclusion metric and with this realisation in NFIS II, there is a shift in focus towards sustainable usage of formal financial services and products, or what I like to term financial wellness. We need to look beyond money-in and money-out solutions and how we can provide solutions that transform the everyday lives of every Zimbabweans and this is what we have set ourselves to do.
EM: What is your vision for providing digital financial products and services to marginalised customers including SMEs and greenfield start-ups?
AM: Our vision is quite simple, our vision is to utilise our fintech solutions to make everyday lives better, today and tomorrow. Every day we are challenged to wake up and deliver solutions that impact all Zimbabweans.  We are well aware of the challenges that SMEs and start-ups encounter daily, challenges around access to the patient capital required to grow, or working capital for everyday operations.
O’mari started by providing solutions to retail customers but we know that many of these customers have side hustles or dreams and aspirations that need to be supported before they can get traditional financial solutions and we are here to plug that gap.
EM: What barriers do people face in accessing financial services in the country and the region and how is this impacting potential economic development?
AM: I’ve already spoken about the need to improve access to and usage of savings and insurance, added to this, there is a need to improve access to investments. One of the barriers that exists is the gap between the existing product offerings and the evolving needs of  current and future customers within the market.
This is a challenge we are seeking to solve as O’mari by offering practical, relevant, tangible, simple and affordable products to the everyday customer. These barriers I’ve spoken about prevent savings, long-term insurance, and investments. Funds pooled from savings, insurance and investments are critical in either funding greenfield projects or funding infrastructure development.
EM: What is your vision for mobile money and where does Old Mutual Digital Services see differentiation and opportunities in the market?
AM: We’re not just a money-in and money-out solution, it’s not our vision or what we aim to be.  Our vision is to create better everyday lives, today and tomorrow. We see an opportunity in fulfilling this vision because the focus is customer-led, developing customer-first solutions is our ethos, and by doing so that is how we differentiate ourselves. Already, the O’mari solutions launched include the insurtech solutions FoodCare and SchoolCare as well as HealthCare because we are focused on customer needs around money, food, health, education, and many more that you will be seeing in the not-too-distant future.
EM: Do you believe that there is enough support for upcoming insurtech entrepreneurs? What plans does your company have to develop digital innovators in the country?
AM: The insurance penetration in Zimbabwe is below two percent and this presents a great opportunity for entrepreneurs to design practical solutions that increase penetration.
There are a lot of bright young minds across the country. In fact, within the Old Mutual Group, we have many talented intrapreneurs that approach us with insurtech ideas.
Old Mutual Zimbabwe already empowers entrepreneurs through the Eight2Five Innovation Hub, beyond that, as O’mari we have several partners run by digital innovators, we believe in collaboration not just competition.
EM: E-commerce has had a slow start in the country compared to other countries in the region. What are your views on this and how can Old Mutual Digital Services create an appetite by customers and businesses in e-commerce?
AM: I concur that in Africa e-commerce has not reached the heights similar to other global markets as expected. However, I would argue that Africa is unique when compared to the global market. We have shaped e-commerce in our own way different to the usual website channels and online infrastructure we see globally. In Africa we see mobile payments done on the mobile phone via USSD or e-commerce purchases transactions being initiated on social media channels such as Facebook and WhatsApp.
What remains critical to drive e-commerce growth in Africa is to reduce the friction points that include trust, the cost of transacting and connecting the first mile and last mile players through a trustworthy platform.  To drive the e-commerce growth journey O’mari has enabled low cost virtual and physical cards for online e-commerce payments and further to this Omari has introduced an open multi-currency merchant and bill payment services platform and APIs for all types of businesses and entrepreneurs.
To drive the e-commerce growth journey O’mari has enabled low cost virtual and physical cards for online e-commerce payments and further to this O’mari has introduced an open multi-currency merchant and bill payment services platform and APIs for all types of businesses and entrepreneurs.
EM: What are the current trends in the digital payments landscape and what are the opportunities for Old Mutual Digital Services in this area?
AM: There are some exciting trends in digital payments including embedded finance, virtual cards, buy now pay later, and digital currencies.
As O’mari we are already market leaders with respect to these trends. We introduced embedded finance through our FoodCare and SchoolCare insurtech, as well as the HealthCare solutions. As we speak, customers can generate virtual USD visa cards on any one of our digital platforms, *707#, WhatsApp, or on the mobile app.
Buy now pay later is an e-commerce play and we have to explore how we can best leverage that trend in our marketplace.
Lastly, with respect to digital currencies, we have observed globally that this conversation has been led by central banks and we are willing participants and actively looking to play in this space.
EM: Can you explain what “On Demand” insurance is and why it is such a game changer in the sector?
AM: Earlier on, I stated that one of the challenges or barriers to financial access and usage is the gap that exists between the product offering and evolving needs of current and future customers within market conditions.
To add, insurance is often overly complex for the majority of customers and on-demand insurance simplifies insurance. It is insurance that works for you when and where you need it.
Imagine being able to switch on your insurance when you start driving your car and off when you stop because the greatest risk to a vehicle owner is the risk of an accident whilst you are driving.
It’s a game-changer because on-demand insurance drastically reduces the cost of insurance and insurance becomes more personalised and relevant, based on your usage.
EM: How can digital technologies be leveraged to create better customer experiences for individuals and for businesses?
AM: I could speak on this topic for several days but one way is through the use of data analytics which empowers businesses with insights to create better and more personalised customer experiences.
By leveraging data we can engage customers at appropriate lifecycle moments and improve customer satisfaction whilst reducing churn, we can identify and eliminate pain points to reduce the customer effort score and through these combined efforts even win over lifelong customers or fans that boost our net promoter score.

This article was first published in The Executive Magazine
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