The banking industry has started to reap the fruits of agents after their deposits soars by over 60 per cent in a year to drive home financial inclusion initiative.<\/p>\n
The agents banking, according to experts, also are helping to stimulate economic activities by increase money velocities in the society.<\/p>\n
Ministry of Finance and Planning\u2019s Budget Framework 2020\/21 issued yesterday showed agencies deposits reached 5.5tri\/- in a year ending last December compared to 3.4tri\/- at December 2018.<\/p>\n
\u201cThere are huge strides registered on offering banking services using agency banking\u2026\u201d the 2020\/21 Budget Framework showed.<\/p>\n
It added: \u201cBank of Tanzania (BoT) has allowed banks to use this channel to offer services in a bid to reach many in rural areas.\u201d<\/p>\n
Mid-2013 banks started complying with the BoT guidelines on agent banking. At the end of last December 21 lenders were offering agency banking services that spread across the country.<\/p>\n
The ministry said number of agents jumped by over 50 per cent to 28,358 at end of last December compared to 18,827 at end of December 2018.<\/p>\n
The ministry report issued in Dodoma showed that the withdraw amount increased by 74.4 per cent to<\/p>\n
1.83tri\/- compared 1.05tri\/-.<\/p>\n
Dr Hildebrand Shayo, an economist-cum-banker, said the agents, given the level of transactions, have facilitated accessibility of financial services close to customers\u2019 dwellings.<\/p>\n
\u201cThis can stimulate economic activities and help to have more banks to have money (deposits)\u2026\u201d Dr Shayo who works for TIB Development Bank said.<\/p>\n
He said the move of having agents banking \u201cwill entice savings\u201d while enabling central bank to control and easily managed money supply and demand.<\/p>\n
Based on gap between deposits and withdrawal, Dr Shayo said \u201cthis will stimulate saving culture in Tanzania.\u201d<\/p>\n
However, the lead economist at TIB warned of the danger of fail to prevent money laundering if the agents are not proper and strict monitored.<\/p>\n
\u201cAgents banking, in my opinion, have no ability to carry out robust KYC [Know Your Customer] of who is depositing money. They will be more interested to push volumes and that is the risky,\u201d Dr Shayo said.<\/p>\n
He also predicting of the future job lost for bankers since banks branches will very soon loose activities to make employers redundant.<\/p>\n
However, the BoT has embarked into registration exercise of entire money services providers in the country that will last till July.<\/p>\n
The aims are to put into data base all money transaction activities from mobile phone money agents, insurance brokers, banking agents to bank and insurers.<\/p>\n
BoT Director of National Payment System, Bernard Dadi said the exercise, Financial Sector Register (FSR), began this month and will be concluded in July after that no service provider will be allowed operating without being registered.<\/p>\n
\u201cThe essence of the exercise is not only to identify the service providers but also to safeguard the market from uncouth vendors,\u201d Mr Dadi said.<\/p>\n
The aim of FSR is to connect and put the entire financial sector under one data base that will enable planners to access accurate information timely, including averting possibility of money laundering.<\/p>\n","protected":false},"excerpt":{"rendered":"
The banking industry has started to reap the fruits of agents after their deposits soars by over 60 per cent in a year to drive home financial inclusion initiative. The agents banking, according to experts, also are helping to stimulate economic activities by increase money velocities in the society. Ministry of Finance and Planning\u2019s Budget […]<\/p>\n","protected":false},"author":84,"featured_media":5119,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[2660,2184,82],"class_list":["post-5125","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-bernard-dadi","tag-hildebrand-shayo","tag-tib-bank"],"yoast_head":"\n