More Tanzanians are no longer visiting bank halls and automated teller machines (ATMs) as digital banking system gains momentum.
The recent trend shows customers are turning their backs to bank halls and ATMs to other optional channels such as Simbanking, point of sales and plastic money.
CRDB Chief Executive Officer, Dr Charles Kimei (pictured), said that though the ATMs transaction rose, increased Simbanking transactions reflected that people are walking away from the ATMs.
This is a phenomenal successÉ we still want more people to use Simbanking as it consolidates the two internet banking service (ATMs and mobile via internet),” Dr Kimei said.
In 2014, Simbanking transactions went up by 71 per cent to 9.3 million while ATMs, which have been around for over a decade and half ago, increased by 15 per cent to 18.02 million.
The bank’s latest data shows that last year PoS transactions went up by over 50 per cent to 383,618 while card transactions increased by over 47 per cent to 18.4 million.
Dhow Financials CEO, Prof Mohamed Warsame, said the trend is a phenomenal success as more people via alternative banking channels enhances financial inclusion.
“(The) financial inclusion does not translate to have a bank account, rather be a part of the banking system even through mobile phone accounts,” Prof Warsame said.
An Exim Bank customer, Mr Leo Mwanga, said the need to withdraw money from ATMs was slowly becoming a thing of past as mobile phones have simplified the transaction.
“There is no need to walk all way to an ATM for withdrawal of money, only to find out that the machine is out of serviceÉ it is costly and cumbersome,” Mr Mwanga said, “while mobile systems can hardly let someone down.”
Under the terms of the Maya (Mexico) Declaration, the Bank of Tanzania committed to increase the share of the population with access to financial services from 27 per cent in 2009 to 50 per cent by 2015.
BoT attained 50 per cent financial service access in 2013, two years ahead of the set target. Now, the central bank is hoping to achieve 75 per cent within the next six years.
Prof Warsame said giving the current innovative trend from banking sector, the percentage the central bank targets is very possible and attainable.
The recent trend shows customers are turning their backs to bank halls and ATMs to other optional channels such as Simbanking, point of sales and plastic money.
CRDB Chief Executive Officer, Dr Charles Kimei (pictured), said that though the ATMs transaction rose, increased Simbanking transactions reflected that people are walking away from the ATMs.
This is a phenomenal successÉ we still want more people to use Simbanking as it consolidates the two internet banking service (ATMs and mobile via internet),” Dr Kimei said.
In 2014, Simbanking transactions went up by 71 per cent to 9.3 million while ATMs, which have been around for over a decade and half ago, increased by 15 per cent to 18.02 million.
The bank’s latest data shows that last year PoS transactions went up by over 50 per cent to 383,618 while card transactions increased by over 47 per cent to 18.4 million.
Dhow Financials CEO, Prof Mohamed Warsame, said the trend is a phenomenal success as more people via alternative banking channels enhances financial inclusion.
“(The) financial inclusion does not translate to have a bank account, rather be a part of the banking system even through mobile phone accounts,” Prof Warsame said.
An Exim Bank customer, Mr Leo Mwanga, said the need to withdraw money from ATMs was slowly becoming a thing of past as mobile phones have simplified the transaction.
“There is no need to walk all way to an ATM for withdrawal of money, only to find out that the machine is out of serviceÉ it is costly and cumbersome,” Mr Mwanga said, “while mobile systems can hardly let someone down.”
Under the terms of the Maya (Mexico) Declaration, the Bank of Tanzania committed to increase the share of the population with access to financial services from 27 per cent in 2009 to 50 per cent by 2015.
BoT attained 50 per cent financial service access in 2013, two years ahead of the set target. Now, the central bank is hoping to achieve 75 per cent within the next six years.
Prof Warsame said giving the current innovative trend from banking sector, the percentage the central bank targets is very possible and attainable.
Source: Daily News, reported by Abduel Elinaza, from Dar es Salaam, Tanzania
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