MORE Tanzanians living in rural areas will now have access to banking services, starting next month from FINCA Tanzania.
FINCA Tanzania has received a banking licence from the Bank of Tanzania (BoT), making it the first microfinance institution to transform itself from a non-regulated entity into a microfinance company regulated by the central bank. FINCA Tanzania Chief Executive Officer (CEO) Mr Tom Koscis said the licence allows the financial institution to start offering savings products to the public.
"The licence by the central bank, allows us to accept deposits from the public and to carry out banking services as a microfinance institution, making this a historic event in Tanzania's financial sector," he explained. This is an important step toward financial inclusion as FINCA brings over 73,000 clients, mainly from rural areas of the country who do not have access to banking services.
"We are launching savings products that are easy to access, easy to operate and at no fee at all. We are also making it easy for our clients to open an account with minimal paper requirements and procedures they are only required to carry the IDs to our branches," Mr Koscis noted.
In addition to the current 25 branches countrywide, FINCA Tanzania is making progress with integrating mobile technology into the company's operations to improve access to services and efficiency.
"Over 20,000 of repayments transaction each month are cashless, using mobile money and development of alternative delivery channels will continue and extend to other areas, to make banking more accessible and affordable," he added.