Question 1

What is People's Own Savings Bank (POSB)?

Accepted Answer

People's Own Savings Bank (POSB) is Zimbabwe's only 100% home-grown savings bank and one of the oldest financial institutions in the country. Licensed and supervised by the Reserve Bank of Zimbabwe, POSB serves as a government-owned savings institution focused on financial inclusion and mobilizing savings for national development.

As of 2015, the bank maintained over 500,000 savings accounts with total assets valued at approximately US$133.7 million. POSB operates with a mandate to provide quality, affordable, and accessible banking services to all Zimbabweans, particularly those in underserved and rural communities.

Question 2

When was People's Own Savings Bank (POSB) founded?

Accepted Answer

POSB was established in December 1904 as the Post Office Savings Bank, making it one of the oldest financial institutions in Zimbabwe with over 120 years of history. The bank was originally created as a statutory fund to mobilize deposits for national development and initially operated through the Post Office infrastructure network starting in January 1905.

In 1965, the Post Office Savings Bank Act (Chapter 249) was promulgated, formalizing the administration of the savings bank by the Posts and Telecommunications Corporation (PTC) on an agency basis. The bank underwent a significant transformation on April 1, 2001, when the People's Own Savings Bank of Zimbabwe Act (Chapter 24:22) was enacted. This legislation established POSB as an independent corporate entity, separate from the postal service, following the split of Zimbabwe Posts & Telecommunications Corporation into four entities: NetOne, TelOne, Zimpost, and POSB.

Question 3

Where is People's Own Savings Bank (POSB) headquartered?

Accepted Answer

People's Own Savings Bank is headquartered in Harare, Zimbabwe, with its main office located at Causeway Building, Corner Third Street and Central Avenue, Floor 6. The bank's headquarters serves as the central hub for its nationwide operations and administrative functions.

Question 4

Where does People's Own Savings Bank (POSB) operate?

Accepted Answer

POSB operates throughout Zimbabwe with an extensive nationwide network designed to maximize accessibility. As of 2015, the bank maintained 34 brick-and-mortar branches across the country, complemented by 220 agency branches operated through Zimpost (the national postal service) and another 18 agency branches through Meikles Supermarkets.

This unique distribution model allows POSB to reach both urban centers like Harare and Bulawayo, as well as rural and remote areas where traditional banking infrastructure is limited. The bank's partnership with postal outlets particularly enhances financial inclusion in underserved communities across Zimbabwe.

Question 5

What services does People's Own Savings Bank (POSB) offer?

Accepted Answer

POSB provides a comprehensive range of banking services tailored to individuals and businesses:

Personal Banking:
• Savings accounts (in both Zimbabwean Dollar and US Dollar)
• Transactional accounts for day-to-day financial management
• Personal loans and microfinance loans
• Mortgage financing with terms up to 10 years
• Women's desk offering savings and credit facilities with favorable conditions
• Special credit facilities for pensioners

Business Banking:
• Corporate and investment banking services
• Business capital expenditure financing
• Working capital facilities
• SME and agribusiness financing
• Merchant and card services
• Salaries processing for corporate clients

Digital Banking Services:
• POSB Mobile Banking app available on iOS and Android platforms
• Online banking platform with comprehensive transaction capabilities
• WhatsApp Banking for convenient mobile transactions
• Cell Bank On-the-Go application
• POSB Prepaid Mastercard and Debit Gold Mastercard (launched March 2023) with worldwide acceptance
• ZIPIT interbank transfers and mobile money services
• Bill payment and airtime top-up services

Premium Services:
• Esteem Banking - the bank's private banking division offering personalized services for high-net-worth clients

Money Transfer:
• Local and international money transfer services through the branch network

Question 6

What makes People's Own Savings Bank (POSB) unique?

Accepted Answer

POSB stands out as Zimbabwe's only fully indigenous, government-owned savings bank with several distinctive characteristics:

Historical Legacy: With over 120 years of continuous operation since 1904, POSB carries a unique heritage as a postal savings institution that has evolved into a modern banking entity while maintaining its mission of financial inclusion.

Financial Inclusion Focus: The bank's extensive agency network through post offices and retail outlets enables it to reach populations that traditional banks cannot serve effectively, particularly in rural Zimbabwe where 51% of the rural population lacks access to formal financial services.

Government Ownership: POSB is 95% owned by the Government of Zimbabwe, giving it a public service mandate to encourage savings among all Zimbabweans and grant loans that support national development priorities.

Accessible Banking: The bank's motto "Convenience Made Simply Possible" reflects its commitment to making banking accessible through multiple channels, including physical branches, postal agencies, supermarket outlets, and comprehensive digital platforms.

Digital Innovation: Despite its traditional roots, POSB has embraced modern technology with mobile banking apps, online banking, WhatsApp banking, and international Mastercard products, demonstrating a strong commitment to digital transformation.

Member of Deposit Protection Scheme: Customer deposits are protected under Zimbabwe's deposit protection scheme, providing additional security for savers.

Question 7

What type of financial institution is People's Own Savings Bank (POSB)?

Accepted Answer

People's Own Savings Bank is classified as a Savings Bank under Zimbabwean law, specifically established under the People's Own Savings Bank of Zimbabwe Act (Chapter 24:22). This classification distinguishes it from commercial banks, merchant banks, and building societies in Zimbabwe's financial system.

As a savings bank, POSB's primary mandate focuses on accepting deposits repayable with interest, encouraging savings among the people of Zimbabwe, and granting loans and advances. This institutional type emphasizes retail banking services and financial inclusion rather than commercial lending or investment banking activities. The bank operates under the supervision of both the Reserve Bank of Zimbabwe and the Ministry of Finance, reflecting its special status as a government-owned institution with a developmental mandate.

The savings bank model allows POSB to prioritize accessibility and affordability over profitability, making it particularly suited to serving low-income earners, rural populations, and first-time banking customers across Zimbabwe.

People's Own Savings Bank (POSB)

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About People's Own Savings Bank (POSB) in Zimbabwe