By Alpha Nsemwa
THE Bank of Tanzania (BoT) has urged all banks and financial institutions to consider cutting down running cost that will contribute to lowering interest rate on loans to their customers.
The BoT Deputy Governor Dr Bernard Kibese made the remarks during the launch of the new Letshego Bank Visa Card services in Dar es Salaam on Tuesday.
"In enlightenment of today's event I want to use this opportunity to urge all banks and financial institutions to reduce the cost to income ratio and also make a financial plan to adjust their running cost. The plan is to reduce interest rates on loans which will be a huge relief to their customers and help them protect their interests in loan agreements," he said.
He argued that having high interest rate might cripple down the state of the economy since most borrowers may be facing financial difficulties, which might lead them to fail honouring their contractual obligations of debt payment resulting into disruption of tax payment also.
"High interests on loans affect people who are our customers but they also might cause a setback in running the government financial projects especially tax collections," he added.
He asked all financial sectors to adapt to the changes in technology and therefore establish new projects, which will encourage the use of digital payment platforms thus reducing congestion at bank premises.
"It is no doubt the world is changing and people need to feel safe while spending their income, today Letshego is launching its Visa card which enables safety transaction for its users, you don't have to carry cash. With that said, I promise to support all banks and financial institutions that will show interest in establishing innovative solutions that aim to spearhead our economy," he said.
It is important to remember that educating the people on how to adapt these new technological changes in the finance sector is of paramount importance.
I encourage Letshego Bank and other financial stakeholders to go all over the country and inform people about digital transactions methods so they can adapt, because doing so will support President John Magufuli efforts in the next five years to implement further the idea of a first class economy, added Dr kibese.
Speaking at the event Letshego Bank Chief Executive Officer (CEO), Andrew Tarimo said the launch of their new product is the continuation of their projects, aimed at supporting the government efforts in developing further digital transactions technology in the country.
"We are launching for the first time our visa card for all Letshego Bank customers in the country, so from now on they can manage to do online purchasing, at anytime and anywhere where the service is applicable, without carrying cash in their hands, it is a safe and affordable method," said Tarimo.
He added that following the increase of financial needs in the country, Letshego bank will be launching soon their loan services, which is a strategy, aimed at supporting the government efforts, to implement the state of middle income to the people.
Speaking on behalf of the Banks Board Chairman Noel Sangiwa asked all Letshego customers to be patient with bank, which is still undergoing some technological advancement while establishing new services.
"Our aim is to provide services at a close proximity with our customers to encourage digital transformations which result into many innovations in our transaction methods, we beg our customers to bear with us as we embark on this new journey, and we promise many more good things are coming," said Sangiwa.
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