AfricaPress-Tanzania: INVESTMENT in digital technology has brought about remarkable change and increased efficiency on the way banks reach and serve its clients in different parts of the country.
Currently most of the customers in the banking sector enjoy the use of digital solution in carrying various transactions without visiting the branches thus creating conveniences and accessibility.
The NMB Acting Managing Director, Ruth Zaipuna said the NMB purpose is to drive Tanzania’s growth and endeavour to enhance the lives of our fellow Tanzanians by offering convenience and accessibility of our banking services across the country.
“We are today a bank known for reliance, focus on technology and innovation,” she said.
She said, “We are leveraging on the best technology in digital banking, innovative products, out extensive branch network and alternative channels to add real value to our customers lives,” The bank has 225 branches, over 7000 agents and more than 800 ATMs with over 3 million customers.
This investment in digital technology is one of the factors that made the bank to excel in scooping the international award in the 8th consecutive time by the London based Euromoney.
The award issued by the London based global financial markets magazine is given after measuring a number of metrics including financial performance, digital banking strategy, financial inclusion, product offerings and the approach to cyber security and corporate social responsibility.
This award is a clear demonstration that NMB bank is more than a provider of financial products and services to being a catalyst for economic change through digital transformation and technology coupled with the ability to deliver innovative solutions to the market.
The Euromoney excellence award confirms the bank’s investment in digital transformation and technology and its ability to deliver innovative solutions to the market.
The other metrics considered by the Euromoney are namely market capitalisation, return on equity, return on assets, market share of deposits, market share of loans, loans to deposits ratio, non-performing loans ratio and non-performing loan coverage ratio.
Last year the Central Bank launched the Tanzania Instant Payment System (TIPS) project, a single platform to connect different payment systems providers to facilitate easiest, fastest, cost-effective and secure instant payments.
The system aims at promoting interoperability of digital financial services amongst payment service providers by implementing efficient clearing and settlement.
Apart from being cost efficient, the system is intended to enhance financial inclusion by promoting the use of electronic payments and money circulation.
These efforts and the enabling environment have made the banking sector to shine domestically and globally and awarded international awards.
Last week, NMB Bank Plc was the latest bank to receive the 2020 top Euromoney awards for the eight year in a row as the best bank in Tanzania outshining about 40 other banks.
Ms Zaipuna said the award reflects the progress that the bank has made in delivering services that meet customers’ satisfaction thus making it the best bank for financial inclusion in the country.
The Euromoney editor Clive Horwood said, “We continue to seek the best of the best in all countries offering banking services.
As every year, size is important but certainly not paramount. Profitability is of course vital, but so is an ability to demonstrate growth, relative outperformance compared with peers and the ability to adapt to changing market conditions or client needs.”
Early this month, President John Magufuli commended the central bank, commercial banks and the financial sector for their contributions, which enabled Tanzania to join the league of middle income economy countries.
The World Bank recently declared Tanzania as a lower middle income economy after attaining the position of per capita income between 1,036 US dollars and 4,045 US dollars.
Speaking before receiving the award, the NMB Board Chairman Dr Edwin Mhede said as the country has just attained middle income status, NMB bank will continue to reposition itself to serve and support the growing economy from where it is to the higher level.
“NMB will continue to reposition itself to support the government endeavours in building the robust economic growth,” he said.
He said research shows that the industrial upgrade and investment in social services are major contributors to attaining middle income status. Thus the bank will continue to support the endeavours so that the government and its predictable policies could be implemented.
As the most profitable bank in the country, NMB bank reported 142bn/- after tax profit, which is equivalent to 46 per cent increase from 98bn/- posted in the previous year.
