The banking sector in Tanzania has been experiencing a rather significant shift over the past few years.
According to the Bank of Tanzania (BoT) records, 40 registered banks operate in Tanzania, National Microfinance Bank (NMB) inclusively—which is now making a substantial investment in offering seamless banking services across Tanzania.
NMB Bank is one of the biggest banks in Tanzania, with over 13 years of operations in Tanzania. The bank’s ownership is split between the government via the Ministry of Finance, holding 31.8 per cent of the shares, public shareholders taking 21.6 per cent of shares of NMB, with foreign investors taking 3.3 per cent (directly or nominees)
Earlier in October, NMB Bank ushered a newly re-branded mobile platform and its app “Mobile Klik” to improve seamless access to financial services in Tanzania.
NMB Bank serves as robust retail and commercial bank, offering financial services to over 3.5 million customers served by over 800 Automated Teller Machines (ATMs). The bank delivers banking services to individuals, small to medium-sized businesses and corporate clients.
It also has a wide range of branches, with a network of over 215 branches, more than 60,000 agents (NMB Wakala Agents) and a balance sheet of over $2.3 billion.
The Dar es Salaam Stock Exchange (DSE) listed bank, has been garnering profits for the past 11 years, within the competitive banking industry.
In that context, NMB Bank’s resurgence to the fintech sphere might prove millions and dominance as the banking industry expands with the crucial assistance from modern technology.
According to NMB Bank: The aim of renaming its mobile platform is to ensure that all Tanzanians, from all walks of life, can resonate with the mobile banking services and be able to access NMB’s banking services easily in the palm of their hands.
According to Financial Inclusion Insights, almost six out of ten adults (56 per cent) are financially included across Tanzania, which most of them are included via mobile money accounts (55 per cent).
Hence, NMB Bank’s new move is yet another strategic move to advance within the mobile banking platforms sphere, as Findings from FinScope Tanzania indicate that: the take-up of digital financial services which require mobile phone ownership is one of the main drivers of access to financial services in Tanzania.
The fintech ingredients are getting larger as Tanzania Communication Regulatory Authority (TCRA) statistics, show internet penetration at 23 per cent (83 per cent going online via phones) and more than 43 million subscribers to mobile networks, it is compelling that, NMB Bank charters in a strong profitable path.
Available data show that 63 per cent of Tanzanians own mobile phones, therefore, NMB Bank is affirmative on increasing the number of customers from the current 3.5 million, via self-opening on mobile phones and reaching the unbanked population.
Speaking at the launch at NMB Head Office, NMB Bank’s Chief Retail Banking – Filbert Mponzi said that, customer experience has been enhanced in the rebranded platform to enhance customer’s experience.
“With NMB Mkononi, anyone can open an account instantly through a feature or smart phone. They will be able to transfer money to MNO’s up to 2,000,000 shillings (over $868), transfer money from NMB account to other banks, pay bills for free, withdraw cash without an ATM card, and make payment of goods and services at Mastercard QR and Visa on mobile payment points,” He added.
Via the app and USSD (Unstructured Supplementary Service Data) customers will be able to effect payment of different taxes through the Government electronic payment system where taxes and fees like customs duty, domestic revenue collection, company registration fees, BRELA, revenue authority, fees police fines, digital passport fees, and other utilities.
There is a larger pool of unbanked population found within economic active ranges. Financial Inclusion Insights data, shows that: one-third (29 per cent) of the rural population have active accounts (used in the last 90 days), while their counterparts in urban areas (66 per cent) are twice as likely to have active accounts.
Therefore, having a close look on the rural population, who are mostly engaged in agriculture, might open other profitable avenues within the banking sphere and fintech as well.
Hence, re-launching of NMB Bank’s innovative service revitalizes its customer- centric approach to its services, while allowing its wide base pool of customers to access banking services anytime, anywhere.
NMB Bank is the only bank in the market that allows customers and non-customers to send money from NMB account to other banks without visiting branches.