Barclays Bank's Zimbabwean unit is leveraging on electronic transactions such as its mobile app, international credit cards and internet enabled platforms amid competition from telecom firms.

Zimbabwe’s central bank has called for closer cooperation between banks and telecommunications companies in the country.

But George Guvamatanga, the managing director of Barclays Zimbabwe, admitted that telecommunications companies, which are running mobile money services in the country, are exerting increased competition on Zimbabwean banks compared to the competition for clients among the banks themselves.

"You can’t ignore technology and technology will bring competition. We are actually seeing an increased competition, not only from the mobile network operators; the retailers and everyone else is venturing into banking. As banks, we need to wake up a little bit as well and start competing," he said.

Barclays Zimbabwe chief financial officer, Sam Matsekete, said the bank is “focused on e-channels.”

“We have upgraded ATMs and we have had non Barclays customers using our platforms through Visa and MasterCard," said Matsekete.

Meanwhile, customers using Barclays platforms under Visa and MasterCard had grown to 40,000 each month during the year to the end of December.

Guvamatanga said that as a result of the intensifying competition from mobile money platforms being offered by telecommunications companies in Zimbabwe, the banking sector in Zimbabwe is set to "evolve much much faster in terms of the services we offer" and how banks offer financial services.

"It’s formidable competition; you can’t ignore it," he said.

Econet Wireless, the biggest telco in Zimbabwe has 3.5 million subscribers on its EcoCash mobile money platform while Telecel Zimbabwe is targeting to sign up 65% of its 2.5 million subscribers on its newly launched mobile money service, Telecash.

During the full year period to end December 2013, Barclays Zimbabwe registered a 5% increase in total income to $38.8 million.

Profit for the year stood at $2.9 million compared to $2.1 million for the year earlier period, with operating expenses being maintained at $33.9 million.