Cash heists are a sign of poor confidence in banks

Edmore Zvinonzwa

Reports of people and institutions losing large amounts of money are set to continue as the banking sector is failing to provide people with a viable alternative, members of the public say.

In September 2021, robbers raided a Chitungwiza home where they stole US$21 700 and R5 000 cash and other property. In December of the same year, robbers stormed a Mt Pleasant, Harare, home and made off with US$48 000 cash.

Recently, a Chitungwiza family lost US$21 500 and R39 000 after robbers raided their house in Zengeza 4.

The police have consistently warned the public against keeping large sums of money in homes.

“These are the issues which we feel the community, particularly the business sector, should co-operate with the police to curb the armed robbery cases which we are currently recording.

“People should not keep large sums of money in their houses because they become targets,” national police spokesperson Assistant Commissioner Paul Nyathi

Continued reports of large cash losses to thieves show that people are not heeding the police's advice.

Zim Now asked a number of people why they are not putting their cash in the bank.

Trust not regained

“I cannot deposit money in the bank because, who knows, when I go back the next thing I may be told is that there is no money or you can no longer withdraw your US dollar. I would rather keep my money under the pillow despite the risk of having it stolen or burnt,” said 34-year-old Gift Kadzviti of Harare.

He said he has never bothered to open an RTGS account with any bank in the country, let alone a foreign currency account, because of the queues that have become characteristic of banks.

The hyperinflationary experiences that people went through between 2008 and 2009 will forever remain etched in their minds because the financial scars were too deep to repair at both individual and national levels.

The financial services sector, particularly the banking industry, was perhaps the worst hit, leaving it in dire need of rebuilding lost client confidence and trust which are central to their very operations.Since then, most Zimbabweans have continued to shun banks, despite their efforts to regain the trust and confidence of the publics they serve, which includes corporates and individuals.

When monetary authorities ordered a changeover from the United States dollar to the Zimbabwe dollar, most Zimbabweans lost value in the cash they had deposited in banks. Besides, the Zimbabwe dollar equivalent only applied domestically.

“The problem is that once that money gets into the account, getting it out is a very high mountain to climb,” said Kadzviti, who added that one cannot be sure of what happens to the way banks operate as this can change at any time.

This lack of confidence in the banking sector was echoed by Percy Nhara, who told Zim Now that if he had a choice, he would not even open an account.

“I used to deal with Botswana banks but then it meant having to travel there all the time I needed to make a withdrawal. As I speak, I was forced to open bank accounts so that I can get payments through to me but I make sure I withdraw everything once it comes through into the account. If it was to earn interest in the account, then I would keep it there but that does not happen so I just take it all out,” said Nhara. He said he has past experiences of loss of money that was in a local bank.

A female manicurist who works in Harare’s Avenues area, but preferred anonymity, said people generally had lost confidence and trust with local banks.

“Some of us have learnt our lessons although it was the hard way. If there was somewhere else that we can take our money to besides local banks then, we would consider that option.

A 27-year-old hairdresser working in the same salon said she was once a victim of theft when her money was stolen after robbers broke into her house. She now keeps her money with someone she trusts instead of putting it in the bank.

High costs negate the little perceived security

Godfrey Munamati, 53, of St Mary’s in Chitungwiza said the double charges that banks levy dissuade people from using their services. “Banks are making a killing. Instead of having money deposited earning interest, it is actually eaten up by charges, so, honestly, why should I take the money there in the first place?”

Patrick Machaya, 52, said formal businesses are some of the most highly taxed in the country. “There are several businesses which, though registered, have not bothered to open a bank account because they are afraid of these taxes,” he said.

A client relationship manager with one of the big five banks who declined to be named told Zim Now that what people are saying is largely true.

“Of course, people claim that they are not comfortable with and have generally lost confidence in the banking sector as a way of justifying keeping their money in homes.

“Yes, there are legacy issues that emanate from what happened during the changeover from the multi-currency system to the Zimbabwe dollar. Banks are trying to get back that confidence."

He said the people should consider the risk of total loss that comes with self-banking.

“The risks involved with keeping large amounts of money in homes are not only related to thefts and robberies but other accidents such as fires. The other thing is that they claim their money is being eroded in banks."

He said people should also shop around for banking services that meet their needs.

“They say traditionally depositors used to earn interest from their money but today, it is no longer the case. There are different accounts that banks offer. Most people operate transactional accounts which do not keep money for long. The majority of Zimbabweans are not keeping their money there."

The official said that taxes contribute to the high cost of banking services.

“Currently, all transactions attract the 2 percent IMTP but it does not reflect at that. It comes together with the service charge."

Banks on target

Several people said that it is hard to regain trust in the banks when the banks are also falling prey to armed robbers.

Banks and money transfer agencies have lost large sums of money to robbers on their premises or while transferring cash between sites.

“If the banks cannot safeguard their own cash, how can I believe that my money is secure with them?” asked Glen Marime of Avondale.

The bank customer relations manager said that financial institutions are insured against such losses so this would not impact on a depositor's position.