Tanzania: Crdb Stresses Financial Inclusion

CRDB Bank is heavily investing in digital technology deliberately to accelerate financial inclusion in the country.

The bank, one of the largest lenders in the land, rallied behind the government's grand ambition to increase the number of adults with bank accounts from the current 20 per cent to 50 per cent in 2022.

To walk the talk, CRDB Bank has already undertaken numerous activities to ensure it delivers in accordance with the National Financial Inclusion Framework (NFIF 2018-2022).

CRDB Bank Group CEO and Managing Director Abdulmajid Nsekela said they had undertaken several initiatives to ensure the lender served the majority of Tanzanians, especially the disenfranchised based in rural areas.

"Our focus is to invest heavily in digital technology as a bank of choice for the future," he said, while promising customers to improve services.

Through its slogan, 'UlipoTupo' which literally translates into being available at the convenience of clients, the CEO said. The management envisages leveraging technological use in advancing its services and products in the market.

In the bank's results for the year ending last December, Mr Nsekela said investment in digitisation had allowed more transactions to be conducted outside its branches, hence covering more people and freeing space for both customers and the bank, while also enhancing financial inclusion.

Three years ago, Bank of Tanzania (BoT) launched the second NFIF 2018-2022, which among other things, stipulates that "financial products and services meet the needs of individuals and businesses consistent with supporting livelihoods, household resilience and the creation of jobs."

The second NFIF targets to raise formal financial inclusion to 75 per cent in 2022 from 65 per cent in 2017.

According to the framework, financial institutions are vehicles that the government hopes to use to advance financial inclusion through investment in infrastructure such as digital platforms.

One such major financial institution, which the government has tasked to drive financial inclusion, is CRDB Bank, the largest in terms of network infrastructure and balance sheet.

The November campaign 'TupoMtaaniKwako' that aimed at mobilising people to open bank accounts and access formal banking services was a success, where by last week over 100,000 new accounts were opened, which was a major feat towards advancing financial inclusion.

CRDB Bank Head of Agency Banking Ericky Willy said the campaign which had already covered 160 districts in 27 regions was so far "a remarkable success".

"Our 'TupoMtaaniKwako' campaign has also involved over 1,000 villages mostly in rural areas where no bank branch is available except mobile phones," Mr Willy said.

CRDB Bank, to reach unbanked mostly in rural areas, deployed mobile branches, utility vehicles and hundreds of its staff, who were backed by thousands of agents located in various parts of the country.

"As our slogan says, 'Ulipo Tupo', we, through the campaign, want to reach everyone wherever they are in the country," he added.

Also late last year, the bank unveiled a 'Jiwezeshe' loan scheme, which targets small-scale traders who get services through their mobile handsets.

"These loans will be issued through the borrowers' mobile phones without any hassles and collateral," Mr Nsekela said when launching the 'Jiwezeshe' loans in Kigamboni Municipal Council, Dar es Salaam.

Jiwezeshe, which targets small-scale traders with IDs issued by the President, requires them to register to SimAccount and get a loan of between 10,000/- and 500,000/- with no interest rate charged, but an administrative fee of about 500/- and 2,000/- upon repayment.

CRDB Bank has more than 260 physical branches, 17,000 agents and over 700 ATMs countrywide as it serves its three million-plus customers.