Phone money transfers impress CRDB

Mobile phone money transfer has proved to be an easier and best mode of paying dividends, according to CRDB Bank experience.

The bank said during shareholders seminar prior to the 17th annual general meeting on Friday that records show that out of 19.26m/- dividends paid through mobile banking all where cashed.

Speaking when presenting a paper during the seminar, CRDB’s Presenter, Ms Hilda Rwanshane, said the payments through mobile phone experienced a zero per cent of non-collected dividends compared to other means such as bank accounts and cheques.

“This is the easiest, safest and fastest means of paying dividends compared to the traditional means,” Ms Rwanshane said during the seminar.

The bank official said mobile phone transfers reach even the remotest shareholders without extra costs including travelling to receive and cash the cheques. However, there are some challenges regarding paying dividends through mobile phones including limitation of the amount to send.

The amount proven is not exceeding 1.0m/-. “…and if a shareholder does not have an account with either M-Pesa, Airtel Money, Tigo Pesa and Z-Pesa, the money is sent back after seven days,” the officer said.

According to the bank spot survey, about 84 of its shareholders possessed a mobile phone therefore advised them to vie for this mode of payments, where they need shareholding certificates or a text message from CDRB and identity—like driving license and voters registration card.

Due to amount limitation and the bank regulations shareholders from cooperative societies, corporate, institutions—such as pension funds, and SACCOS cannot be paid through mobile phone.

According to the bank the problematic means proved to be cheque system where out of 3bn/-of uncollected dividends it accounts for 94 per cent.

“Data shows the most of uncollected dividends was paid using cheque methods…where 2.7bn/- were still uncollected to the end of the 2010,” Ms Rwanshane. 

“This amount (about 3bn/-), if was circulated in the economy could assist in economic development,” she said.

The reasons that were given by some of the shareholders who failed to collect their dividends included high travelling costs compared to the amount paid, death of the shareholders, frequency work station transfers, and transfer of the account from one bank to another.

CRDB bank is the biggest bank in the country in terms of assets and deposits and since it went public has paid almost 49bn/- as dividends of which almost 3bn/- are uncollected. 

Since 1966, the numbers of the bank shareholders have increased from 738 to 34,000 in 2011.

The bank is listed on Dar es Salaam Stock Exchange (DSE) and its shares were traded at 125/- each on Friday. Last year, the bank celebrated its 15th anniversary and a period of extraordinary and expansion. 

In the last financial year, CRDB registered a net profit of 38bn/-. Its total assets grew by 2.71tr/- while customers deposits ballooned to 2.41tr/-.
Source:  The Daily News,http://dailynews.co.tz, reported by Abduel Elinaza
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