Finca granted licence to offer banking services

Finca Tanzania Limited has become the first micro-finance institution in the country to be granted with a banking licence by Bank of Tanzania (BoT).

The turn of events will see the previously non-regulated seed money creditor -- popular for its flagship collateral-free village banking services and group loans -- being regulated by the BoT.

Unveiling the certificate to journalists at the institution’s headquarters in Dar es Salaam yesterday, Finca Tanzania chief executive officer Tom Kocsis said the licence was issued in January and the banking services would commence tomorrow.

“Having been in business in Tanzania for only 15 years, this achievement is historic,” MrKocsis said.

He added: “It is an important step towards financial inclusion as Finca brings over 73,000 clients mainly from rural areas.” 

But he said the new banking services will start in its Dar es Salaam-based branches of Magomeni, Ilala and Temeke, and later spread gradually to other branches across the country.

The CEO said the development has come as a result of the institution’s growth strategy and a response to demand demonstrated for years by their clients, adding that banking products were expected to increase the firm’s clientele base tremendously.

“We’re very well prepared for change; we have in place state-of-the-art banking system that will enable us to give the established banks a run for their money,” he boasted. 

He added: “We are launching savings products that are easy to access and operate at no fees at all; the clients only need to carry identification cards to our branches.”
Source: The Citizen, www.thecitizen,co.tz, reported by Songa wa Songa in Dar es Salaam
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