The agency banking that was approved by the central bank some two years ago is a platform used by over six banks including, CRDB bank, Postal Bank, Equity Bank, DCB Bank and Maendeleo Bank.
CRDB Bank Managing Director Charles Kimei said for instance agents under FahariHuduma managed to increase open over 6,000 new accounts. “Though this was not core operation for FahariHuduma, the agents raises bank’s customer deposits by 13 per cent,” Dr Kimei said.
The MD, who also doubled as Tanzania Bankers’ Association Chairperson, said the total deposits generated by CRDB’s FahariHuduma agency reached 524bn/- as of yesterday. CRDB total deposits is hovering around 5.0tri/-. Dr Kimei said FahariHuduma agents have increased from zero in 2013 to 2,200 of yesterday, while from February this year they climbed from 1,700 to 2,200.
“As we speak, agents are conducting 130,000 transactions per month… this is very encouraging,” Dr Kimei said. Dr Kimei said financial penetration was still 17 per cent under those in mainstream banking system.
At the end of this year’s first half, bank agents have increased their penetration led by CRDB that have over 1,000 agents, followed by Tanzania Postal Bank over 300, and DCB Bank 130.
NMB was targeting to recruit 250 before the end of 2015. The new country target for financial inclusion target of 75 per cent comprises all financial platforms — formal and informal banking service.
Mobile phones are leading the financial inclusion in this year to force Bank of Tanzania to change target. Under the terms of the Maya (Mexico) Declaration, the BoT committed to increase the share of the population with access to financial services from 27 per cent in 2009 to 75 per cent within the next six years.
Meanwhile, CRDB bank has capitalized on the country tele-density to intensify its market outreach using the combination of mobile-phone and internet platforms. The bank’s ten months campaign to raise awareness of using its SimBanking brand paid off big time after registering a 95 per cent success.
CRDB’s Managing Director Dr Charles Kimei said during the campaign period the bank managed to mobilise 695m/- out of over 10 million transactions. “It was not easy to convince those born before computer (BBC) to join Simbanking platform that offers banking services hassle free,” Dr Kimei said. He said SimBanking customers increased from 830,000 in February to 1.2 million of yesterday.
Since the country has about 30 million tele-subscribers which are almost 75 per cent of population, thus wining customers via the platform increases bank penetration.
“If we tap this area, we are not only increasing our share of market but also financial inclusion of this land,” Dr Kimei said. Dr Kimei said when welcoming chief guest CRDB’s board chair Martin Mmari to deliver a speech and handover prizes for SimBanking campaign top winners. “In today’s world, technology is the hallmark of our daily lifestyle and mobility is increasingly becoming integral to any service,” Mr Mmari said.
The three persons who each won a Toyota Passo were Dodoma urban MP, Antony Mavunde, who also was appointed a deputy minister on the same day. Mr Mavunde sent his representative to pick the car for him since he had other obligations at his constituency in Dodoma. Others are Maria Minde, a University of Dar es Salaam second year student of Bachelor of Commerce in Tourism.
She knows how to drive but owns neither a car nor a driving licence. “Our family owns no car. This is the first one in our family. But I will ask my sister to keep it for me at the meantime while ‘am pondering the next move,” she said. Another Passo winner was Hellen Achimpota, an Assistant Accountant of Mzumbe University.
“My husband and I have many cars mostly for business, but this one will be for me only to take me to church or to work.” The winners were for September, October and November. Also the second (solar panel) and third winners (Smartphone) received their awards.
The competition saw 10 luck people out of 1.2 million Simbanking subscribers who won the top prize of Toyota Passo vehicles. Through CRDB’s Simbanking service, one could carry out any type of transactions using your mobile phone.
Originally published on DailyNews Tanzania
