NMB promo gets positive results

The National Microfinance Bank’s (NMB) strategy to mobilise deposits through a three-month promotion has paid off, with over 40,000 new and existing accounts entering the draws at various stages.
 
The promotion dubbed “Jenga Maisha Yako na NMB,” was closed on Thursday with 500 existing and new customers of either Bonus or Junior Accounts winning various prizes in the last three months. 

Closing the promotion, NMB’s Personal Banking Manager Julius Konyani said the promotion exhibits clearly the growing culture of saving among the society and bank service awareness.

“We have received million of shillings in terms of deposits as thousands opened accounts in the three-month period,” Mr Konyani said. 

The Manager, however, failed to give the amount of deposits they mobilised in the last three months, saying he lacked that authority.

But simple calculation by the ‘Daily News’ shows that at least 2bn/- was raised in deposits given the 40,000 accounts that entered the draw times the minimum deposit of 50,000/- as qualification to enter into the raffle. 

The Bank of Tanzania (BoT) tight liquidity measures to reverse shilling depreciation and curb galloping inflation have reduced money in circulation to affect deposit mobilisation.

To attract deposits some banks embarked on promotion campaigns while others increased deposits rate to push up interest rates in the last 12 months to 10.92 per cent from 8.03 per cent registered in July 2011.

“In line with these developments, the spread between 12-month deposit rate and one-year lending rate narrowed to 3.45 per cent in July 2012, compared to 6.81 per cent in July 2011,” BoT said in the report.

The draw, according to NMB, was meant to entice depositors build a saving culture and at same time, through the prizes, accomplish their plans. 

The prizes, which were won monthly, saw 500 customers of either Junior or Bonus account, walking home with various prizes including two grand award of building materials.

Others were school fees, school bags and polo shirts. NMB is also the biggest bank in terms of network where in the last five years it managed to increase its branches from 100 to 140 and 450 ATMs country wide. Its customers have reached 1,600,000.
Source: The Daily News,http://www.dailynews.co.tz, reported by Abduel Elinaza
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