Banking offers a variety of benefits for individuals, businesses, and the overall economy.
Benefits of Banking
The banking of money is an important aspect of financial inclusion. Once you bank your money, you will have access to a number of benefits.
Deposit protection: You are guaranteed to receive all or part of your money back if a bank closes. This is possible because your deposit is protected under the deposit protection scheme that is administered by the Deposit Protection Corporation.
Flexibility to choose your bank: All deposits in banks that are registered under the deposit protection scheme are protected. You can choose to open your account in any bank of your choice since you are guaranteed to receive your money back if your bank fails. The list of members of the deposit protection scheme can be found on the Deposit Protection Corporation website, as follows: https://dpcorp.co.zw/member-banks.html
Access to diversification: Since deposit protection covers the depositor’s account in different banks separately, you can open accounts with more than one bank and still access the benefits of deposit protection separately for each bank.
Safekeeping of Money and other Valuables: Banking your money ensures that your money is secure given the rise in robberies involving unbanked cash. You will also be able to track your transactions since the bank will have records of all transactions you make hence security from fraud or error. You will also be able to block your account in the event of losing your bank card.
In addition, banks offer safe custody services for the safekeeping of various documents and other small items that can be kept in a safe within your bank.
Access to digital services: Banks facilitate payment services such as wire transfers and electronic payments, allowing for the efficient transfer of money between individuals and businesses. When you bank your money, you automatically have access to a number of digital services that enable you to transact from anywhere in the country and without handling cash. This means that you are able to, for instance:
- transfer money to a relative
- do a bank to wallet transaction if you want to use mobile money
- use your card to swipe for goods and services
- convenient access to funds through ATMs
- pay your bills online, among other functionalities
Access to credit facilities: Most banks offer credit facilities to their customers thus enabling them to meet their financial needs and emergencies. Banks provide various types of credit, such as personal loans, mortgages, and business loans, allowing individuals and businesses to access funds for various needs.