AfricaPress-Tanzania: THE total assets under management for Timiza Akiba hit a record high in March after increasing 32 per cent in just three months from December last year, due to the increase in the number and value of customer deposits.
Timiza Akiba Fund manager, Letshego Bank’s Chief Financial Officer, Andrew Tarimo, said in a statement in Dar es Salaam yesterday that the amount of active customers increased 9 per cent in March compared to the most recent six month average.
“This indicates that there is an increasing number of Tanzanians choosing to save, where possible, at this uncertain time,” he said.
He added, “Digital payment apps and gateways are a safer alternative to dealing with cash especially during the Covid-19 pandemic.
Timiza Akiba offers a secure, rewarding way of saving money for emergencies, business, family or the future during this time of economic uncertainty,”
Airtel and Letshego Bank Tanzania partnered with financial technology company Jumo in 2018 to introduce the first fee-free, interest-bearing mobile money savings account called Timiza Akiba.
The initial aim to drive a savings culture among the people and help them reach their business or personal financial goals is showing signs of sustained success.
Jumo builds and operates short-term, structured and long-term financial products for emerging markets.
“Our technology stack reduces unit economics on the delivery and administration of financial services so that partners can reach new markets and customers can access high value products,” said Jumo’s Africa Chief Executive Officer, Buhle Goslar.
He added, “Our partnership with Airtel and Letshego in Tanzania has reduced the barriers to access to savings significantly and it’s encouraging to see how Timiza Akiba has grown, especially in recent months,”
As a paperless and safe mobile-centric service, Timiza Akiba allows Airtel customers to set up a savings account and save any amount from 100/-up to 5m/-directly from their phones, without having to handle cash or travel to a bank.
The funds are managed by Letshego Bank and customers receive competitive rewards for not withdrawing from their savings for a 30-day period.
Withdrawals are, however, accessible and available at any time with no transaction costs, in the event of an unexpected expense or emergency.
Many customers, like small business owner Olivia Beatus, choose to save with Timiza Akiba because they can deposit small amounts, gradually working towards a big financial goal.
Mr Erick David, a security guard from Dar es Salaam, said he is saving for capital to build multiple income streams by running various agricultural businesses.
He used to save his money in a traditional bank account, but it became inconvenient when making deposits meant hours traveling to the bank.
