Agency banking facilitates CRDB’s rural expansion

After covering all the country’s regions, CRDB Bank says it is now capitalising on the recently launched agency banking service to expand its coverage to district level.

The bank’s Senior Marketing Officer, Mr Willy Kamwela, speaking at the 37th Dar es Salaam International Trade Fair (DITF), said that the bank has, through partnership with Tanzania Postal Corporation (TPC), established 40 centres for banking service provision.

Through the service, customers will access bank services through appointed agents, with TPC being one of the major agents of the service. Agency banking is a concept through which a commercial bank contracts different entities or individuals to provide services on its behalf.

Recent studies conducted in Tanzania show that only 15 per cent of about 45 million people in the country, representing just 5.6 million people, are covered by traditional banking services. 

Mr Kamwela said the agency banking does not focus only on reaching customers easily but the new product also presents a business opportunity for local entrepreneurs.

The services will be conducted through mobile phones and points of sale (POS) which will be connected to the bank’s network. Future plans are to engage mobile money transfer service agents in offering the service.

Mr Kamwela said for example the process has reached an advanced stage to establish branches in Mafinga, Ifakara, Tunduma, Babati, Kyela, Urambo, Kibaigwa, Chunya, Serengeti, Mtwara and Kasulu. Most of these districts were currently being served by mobile branches.

Listed at the Dar es Salaam Stock Exchange, the bank boasts of over 90 branches, 300 automated teller machines and 1,000 points of sale spread all over the country. Poor infrastructure and bureaucracy, in addition to a scattered population are among the challenges facing the expansion of banking services.

It is estimated that about 700m/- is needed to set up a fully-fledged branch and many banks, particularly new and small players, can hardly afford to open up branches in remote areas.

Currently, there are 50 registered financial institutions in the country with a total of 525 branches, with each branch serving an average of 85,000 customers. The situation is different in the developing world where a branch serves less than 1,000 people.
Source: The Daily News, reported from Dar es Salaam
Share on Google Plus

About Abduel Elinaza

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.