CRDB’s bank agents mobilise hefty deposits

CRDB Bank, the largest bank in term of balance sheet, has managed to mobilise 254.4bn/- deposits through agent banking which was an increase of over 700 per cent in 2014.

The bank’s FahariHuduma agent banking scheme was introduced in 2013 and in the first year managed to mobilise 31.7bn/- deposits.

The agent banking though in its nascent stage has managed to recruit 1,067 agents compared to 491 in 2013, which was an increase of 117 per cent over a year.

The CRDB, Managing Director, Dr Charles Kimei, said that the bank’s agent banking was quite different as it depends on its own system unlike others.

“Our training budget for agent banking is relatively high than our competitors,” Dr Kimei said over the weekend during annual shareholders’ meeting in Arusha.

There are six banks which are offering agency banking in the country including DCB Bank, Tanzania Postal Bank, Maendeleo Bank and Kenya’s Equity Bank. He said despite increasing competition, CRDB managed to retain its customers backed by good service offered on the bank network.

The CRDB Senior Manager Agent Banking, Ms Jessica Nyachiro, said withdrawal transaction conducted by agent units increased by over 600 per cent to 34bn/- in 2014.

“The agents managed to open 13,304 new accounts, an increase of 90 per cent over the preceding year (2013),” Ms Nyachiro said.

She said despite its success in short span, FahariHuduma still faces some challenges, among them customers are yet to trust the services and low awareness because it is the newest service to the society.

Dhow Financials CEO, Prof Mohamed Warsame said going by the current pace of adding some 500 agents a year on CRDB system, it showed that CRDB was following the example set by Kenya’s Equity Bank which has about 60,000 agents.

CRDB statistics show that in total, the bank managed to connect 81 per cent or 863 agents to its systems and had recorded good volume transactions.

At the end of 2014, CRDB had a total of 575 new FahariHuduma agents bringing the total to 1,067 agents, including 37 of Tanzania Posts Corporation.

Additionally FahariHuduma agents started to facilitate account opening using Fast Account Opening (FAO) mobile application.

The app enables capturing and uploading of customers’ photo and documents by using mobile phone device.

CRDB championed others to the role of the financial sector in mobilising savings and investing in the growth of the productive sectors while accessing to financial services for the poor to reduce their vulnerability and increase their income generation capacity.
Source: Daily News, reported from Dar es Salaam, Tanzania
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