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Commercial banks will now contract
agents in delivering banking services, a move expected to widen the
banks’ reach to more customers in a cost effective way.
This, it is expected, would see some
banks changing to models of gathering large volumes of deposits,
resulting in low costs and stable funding.
“This will enable banks across the
country to earmark individuals or smaller institutions to act as their
agents, starting February 1, this year,” the central bank said.
It added
that the guidelines are part of the actions taken by the industry
regulator towards achieving the vision of an inclusive financial system
that ensures all members of society, including the underserved, have
access to and usage of quality and affordable essential financial
services.
“Agent Banking, which is the use of
retail outlets by banking institutions to deliver financial services,
has been an additional delivery channel that can enhance the convenience
and outreach of quality and affordable financial services, particularly
to the underserved in a more cost-efficient manner,” it noted.
It noted the Guidelines are intended to
create an enabling regulatory environment to promote financial inclusion
and ensure safety and soundness of the individual banks that will
engage in agent banking business and the entire banking system.
Currently, many banks have concentrated on fighting for big customers
especially in towns without focusing on the potential of people in rural
areas, with research indicating only 15 per cent of Tanzanians have
bank accounts.
Banks and other providers now recognise
the potential of reaching millions of prospective customers, especially
the rural population who account for over 70 per cent of the rural
population.
Source: The Daily News, www.dailynews.co.tz, reported by Orton Kiishweko in Dar es Salaam
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