Financial institutions advised to develop competitive edge through service promotion

By Devota Mwachang`a

Finance minister Dr William Mgimwa shakes hands with DCB bank managing director Edmund Mkwawa moments after inaugurating the bank's new products at a ceremony held at the weekend.

Financial institutions in Tanzania have been urged to promote their services in order to compete with other East African countries which are said to be performing better at the moment.

The call was made at the weekend in Dar es Salaam at the launch of DCB Commercial Bank PLC’s agency banking: DCB Jirani, DCB Connect (Internet Banking) and DCB mobile banking in Dar es Salaam by Finance minister Dr William Mgimwa.

He said financial services are a catalyst of economic development in the country.
“I would like to congratulate DCB for improving its services through technological services of agency banking, this move aims at improving its services and placing the country among the competitors in the financial market, for the moment it is not doing good enough,” he said.

Dr Mgimwa said the country’s development through financial institution rely on innovative, product re-engineering and efficiency with quality services since customers always go for quality services which meet their demands.

He urged Tanzanians to continue using the bank’s services and for the bank to open the doors for comments from customers purposely to strengthen services and meet the demand.

Director General of DCB Commercial Bank PLC, Edmund Mkwawa said the bank will use its 195 agencies from Maxcom network that have been authorised by the Bank of Tanzania (BoT) to offer the services to ensure they promptly reach people across the country.

“Our intention is to involve many people in financial inclusion and giving them capacity in expanding their business so as to boost the national income. Since its establishment the bank has been performing well year after year, after the bank changed its license it has provided 301.4bn/- loans since 2002,” he said.

Maxcom Africa, Chief operation officer Ahmed Lussasi said “we aim to ensure the nation is doing better into the financial market, by starting we are working with DCB effectively this week with agencies from and late on we’ll expand our services to all DCB branches in the country this it help and convincing people getting services from the level of villages”.

Mkwawa cited the loans as loans for group 56.9bn/-, private business loans 13.6bn/- house mortgage 3.4bn/- and salary loans 22.5bm/-. However, the bank’s capital has grown to 30.65bn/- this year from 1.1bn/- in 2002; Amana has grown to 98.8 percent in September this year from 1.76bn/- 2002.

He said the bank has contributed 15.12bn/- as national income through paying tax (income tax 7.1bn/-, salary tax 3.6bn/-, skill development levy 1.02bn/- and withhold tax 3.4bn/-) in September 30, this year.

DCB Board of Directors chairman Ambassador Paul Rupia said the huge challenge with the bank is lack of stable deposits for fulfilling the demand of customers who applying for loans. And again called upon the Dar es Salaam municipal councils to open accounts in the bank. 

SOURCE: THE GUARDIAN