September 2020

A Quarterly Bulletin of the Tanzania Bankers Association

CONTENTS

Word from the

Editor………Page 2

Financial Literacy: The

Grassroots
Approach…….Page 3 FINANCIAL LITERACY and DIGITIZATION OF BANKING

Digitization and the Future

of Banking .........Page 7

Compliance at a Glance …..

Page 9.

News from Banks …….. Page

11

Funny Jokes ……..Page 29

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 Dr. Joe Masawe

“Financial literacy is a critical barrier to

financial and economic participation,”
steemed Readers, writes the authors of the report. “Because
of a lack of knowledge about finance and
We welcome you once again to financial products, many people –
share our thoughts through especially the poor and women – are not
our Newsletter. In a recent able to access banking and financial
report by Standard & services, and are therefore kept out of
Poor’s, Financial Literacy Around the financial markets.”
World, the authors seek to answer a
question: How financially literate are If societies are to flourish, we need to
people across the globe? Financial ensure that financial education is given
literacy’s importance is clear. An more importance, not only to adults, but to
understanding of basic concepts in finance young people and children as well.
empowers people to make sound financial
decisions, and without which can lead to
people borrowing more and saving less.
Basic aspects of money-management and financial literacy and advantages if the
the use of digital technology for greater digitization of banking transactions. We
efficiency needs to take the center stage welcome you all to enjoy reading this
today, as we prepare our societies to important and stimulating Newsletter.
manage their finances better. In this
edition, we cover various topics on *******

2
 In this short article we are going to discuss on
simple law of this process and the importance
of education in changing the mentality
through improving financial literacy in
society.

What is financial literacy?

Literacy means competence or knowledge in
a specified area. Financial literacy means the
having knowledge on financial management,
and use the knowledge to improve your life
by using the various financial skills,
including personal financial management,
budgeting, and investing.
Financial literacy helps individuals to
become self-sufficient so that they can
By Elisha Bernard achieve financial stability. (N-FEF 2016-
UBA Bank 2020).
The national financial education framework
he love of money is the 2016-2020 base line study identified eight
beginning of all evil, so says the key focus area that are essential to promote
good book. financial education. Those areas are
Financial numeracy, Budget and keeping
For years’ generations have track of cash flow, Risk Management,
battled for and against the Financial products and services, Attitude and
mentality of seeking wealth. confidence, improved livelihood and
consumer protection.
In some society seeking to be rich is
perceived as being greedy given the long Financial literacy goes hand in hand with
holding mentality that is it is easier for the financial inclusion, financial inclusion
camel to pass through the hole of a needle measures the proximity of financial services
than the rich to enter the kingdom of God. to users, and literacy begs the question
whether these people who have services to
The thought of wanting to be rich is somehow their door steps can understand and use these
treated with caution, yet everyone wants to services in their favor or these services as
do well in life financially which means one alien as a flying saucer.
has to plan not just how to make ends meet
but how to create wealth, which requires him Who needs to be financially literate?
or her to plan how to dance with the
necessary evil, money, and the available Everyone needs to be financially literate;
opportunities to maximize income and financial literacy promotes the level of
minimize expenses. service that is to be given to the customers as

3
balancing and checking mechanism between focused only to formally employed it will
the customers and service providers. deprive the 96 % of the much needed
education.
Financial literacy promotes level of
awareness to the community on the risk This has also been the subject of focus for the
associated with different products offered by National Financial Education Framework as
institutions, how to diversify those risk and it highlighted the eight focus area at the
make sound decisions between the risk and national level, the framework also recognize
return, more knowledge will increase that the issues are not one size fits all and
demand from customer side after weighting should be customized accordingly to
all the options from simple decision as different groups basing on their age, interests
choosing the right institute to open a saving and channels
account to more complex investment
decisions as whether or not to buy new When to start?
block of shares of the company that has just
Financial literacy has two parts first part has
raised their first Initial Public Offer or set
to do with understanding and the second part
aside portion of their savings to invest in
has to do with effective application of
Fixed Deposit.
financial skills, the understanding of the
Proper decision to save and invest that is to various basic financial calculation and
come as a result of financial literacy will in concepts is something that can be taught but
the long run benefit the whole family and the effective application of the same will
generations to come and in a way will lower require to build a character from very early
the level of poverty in our community. stage of the person upbringing.

The level of competence in financial literacy Now, we learned to speak a language from
will also drive financial inclusion. when we were toddlers, we saw how our
parents used different words and we
The current situation mimicked them until we became fluent.
According to Standard & Poor’s Ratings We became accustomed to what we learnt
Services Global Financial Literacy Survey from early stages of our lives, and those basic
conducted in early 2010’s ranked Tanzania at skills still form a big part of our decisions to
40 % in financial literacy against well date as they are intertwined in the fabric of
developed countries such as Norway which is our beliefs and character.
ranked first with the score of 71%.
Just as it is impossible for the acorn to turn to
The Fin scope study 2017 highlighted at least a big oak tree in a day or grapes to fine wine,
64 per cent of population have gone through we must acknowledge the same process when
primary education ,18 % secondary we discuss about financial literacy.
education, 3 % tertiary education.
The law of process
While it is true that people who are in formal
employment are expected to be more The law of process simply suggests to take
financially literate than the counterparty, they the same approach when we push for
only cover about 4 % of the whole financial literacy agenda, the whole process
population, which translates simply that if the takes time, and it is both good and bad, good
need for financial literacy is going to be if we are to embrace the law, work with it and
4
bad if we are to ignore and expect to improve value chain from saving union to banks,
the situation in short time, just like exercise, investment houses to stock markets they have
to develop a strong muscle one needs been perceived as being only for elite, yet for
consistent exercise regimen. financial inclusion to have the expected
outcome people first have to know how they
That is to say a few minutes of training a work.
person on financial calculations will give one
the essential mathematical skills that are for The 2000’s children excel in mobile
making sound financial decision but it will technology because they have seen how it
take longer to transform the attitude of the works and became their way of life against
same person, thus acknowledging the fact much older population that weren’t exposed to
that financial literacy has much to do with the technology, that means if we happen to
molding attitude from very early stages. expose our young population to the available
avenues, they will grow up to become users of
In that regards as we pointed out that only those avenues otherwise as a nation we will
four per cent (4%) are formally employed have to invest heavily on first creating
against 80% who have gone at least through awareness when they are older with less
primary, secondary and higher learning, we chances of success, as the old saying goes, it
should consider teaching from early stages is hard to teach old dog new tricks.
financial education as stand-alone subject
from primary schools to higher learning to Schools should work jointly with banks,
build not just mathematical skills but the telecommunication companies, stock markets,
character and to do so from the level that saving union and other players to have
guarantee to reach more than a half of the visitation programs for children to be taught at
country population. least the basics of their activities with respect
to their level of comprehension.
How to start from the grassroots?
 Practice, practice, practice
Here are some of the ways that may be
applied to promote financial literacy Banks as one of key player have the right idea
education from primary schools to higher on molding character by starting to promote
learning. child accounts, that comes in different names
such as vibubu accounts, malaika, young
 Story books. achievers, watoto account and the like to name
a few, the idea behind it to mould the attitude
Children learn most through tales, while it is
from early stage to learn to save and use
true that we cannot use strong terms or teach
financial institutions.
them advanced calculations on investment,
stories about saving culture can be taught from Stock markets, insurance firms, investment
early stages of their upbringing, these stories houses, mobile money service providers and
will set pace for much advanced skills, each other members should design programs to tap
story can be attached with a moral lesson that on children’s curiosity on how different
will pass the intended message. institutions work, so as to make children good
ambassadors financial management and in the
 Learning through visual
long run become good teachers to their
All the avenues that can be used in financial children as well.
educations, all the members of the financial
5
  Financial literacy clubs Conclusion
Financial literacy clubs will be best approach Standard & Poor’s Rating services Global
for secondary schools and universities, to Financial Literacy Survey highlighted that
learn more on the available opportunities to worldwide only a third of whole population
save and invest, the stock market, investment have an understanding of basic financial
houses, insurance firms and every aspect concepts , meaning two third of the world is
down the financial value chain. not well prepared to deal with complexity and
rapid changes in financial landscape,
If the students are to be exposed to the governments have been pushing the supply
number of avenues that they have to invest side in terms of regulations and proximity of
from younger age they will have more services to boost access but these
options when they become matured adults on opportunities can lead to high debts, mortgage
how to invest and use all the opportunities in defaults or insolvency if the demand side is
their favor. not well informed and trained on best
Also Clubs have the potential to bring about approach to use these services to make better
discussion and fresh ideas that can be applied decisions.
to promote financial literacy and inclusion

6
 customer needs more quickly, more
efficiently, and more accurately. It provides
agility by speeding up both external and
internal processes and has higher transactions
security and low delivery costs.

According to Mackenzie Global Institute

(MGI), widespread use of digital finance
could boost annual GDP of all emerging
economies by $3.7 trillion by 2025. This
would come from reduction in face to face
cost via digitization, reduction of
counterparty risk and bridging information
asymmetry gaps, by using big data and block
chain technology to produce credit scores
that allow lenders to offer for example,
unsecured credit. The think tank outlines
further that, raised productivity of financial
and non-financial businesses and
governments due to digitization could
account for almost 66 percent of the increase
Joe Masawe
in GDP, while the rest will come from
increased financial inclusion and more
productive and flexible hours of work arising

I
t wasn’t so long ago that knowing the from digitization.
name of the bank teller at the window
was commonplace. The rise of mobile
technology and the comfort most users In Tanzania, digital banking has expanded
have with digital banking has changed rapidly mostly through the use mobile phone
the way banking is done. technology, but also through the expansion of
The use of digital technology in banking, or internet banking and use of ATMs. The use
digital banking, has recently expanded of digital technology has enabled banks to
rapidly, especially after the introduction of record major success in broadening their
mobile phone technology. Digital banking services to those who were prior to the use of
can be defined as the process where banking digitization, unbanked. According to
products and services are delivered Financial Sector Deepening Trust (FSDT)
electronically and in high levels of process Reports, Tanzania has recorded significant
automation through desktops, mobile phones growth in the level of financial inclusion in
or electronic cards used over Point Of Sale the last decade by almost halving the level of
(POS) machines or Automatic Teller financial exclusion between 2009 and 2017.
Machines (ATMs). Digital banking has The level of financially exclude population
several advantages. It helps banks improve narrowed down to 28 percent in 2017, from
interaction with customers and deliver 55 percent in 2009.

7
The banking sector continues to expand its asymmetry gaps. Let us “BE SMART and
efforts in ensuring that financial transactions GO CASHLESS”.
of its customers become more and more
digitized so as to take full advantage of the
efficiency associated with digital technology.
Currently, Tanzania Bankers Association, an
umbrella organization of all banks and
financial institutions operating in Tanzania,
in collaboration with VISA are running a
campaign dubbed “Be Smart, Go Cashless”
or in Kiswahili, “ Kuwa Smati, Jisevie,
Popote Ulipo” to promote the use of
electronic cards issued by banks at Points of
Sale (POS) like supermarkets, filling stations,
hotels, restaurants etc. need to be praised.
Electronic card payments provide consumers
with a safe payment solution wherever they
are, while at the same time, giving businesses
a safe and cost effective way to accept
payments. Recent data shows that out of
150,000 registered businesses only 20,000
accept electronic card payments, implying
that the potential for growth of electronic
card payments is huge. The campaign also
aims at discouraging merchants from
surcharging electronic card payments at POS
devices given that its benefits accrue to both
the seller as well as the buyer. It is a
partnership which provides a win-win
situation for both sides.

It is important therefore for both consumers,

as well as businesses of all categories to
embrace this new technology which is
rapidly enhancing efficiency, improving
security, reducing face to face cost, reducing
counterparty risk and bridging information

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COMPLIANCE AT A GLANCE
By Lilian Kawa

W
hat is compliance? What do
compliance officers do? Do they
work like the rest of us? Why are
compliance officers so annoying and always
asking repetitive questions? What
qualifications do they have? What do I do in
order to be a compliance officer? Do I need
to go back to school and undertake a
compliance degree? Why is compliance
considered important?

Those are frequently asked questions. As

much as we don’t brag but I assure you that
there is so much that we do behind the scenes
that make you have a stress-free sleep, count
on getting up to go to work the following
morning and days to come and above all
ensures that the bank ethically runs to provide
a sustainable growth.

Well the answer/s are simple, Compliance is

an important unit in an organization
especially a banking institution to ensure that
every applicable legislation (whether local or
international) is adhered to by the institution
otherwise the institution will face dire
consequences which include: revocation of
banking license, reprimand, penalties, staff’s
imprisonment and many more. Compliance is
your WatchGuard in the cases of balancing
business needs and ensuring that we don’t
face any incriminating charges which will
leave most of us unemployed. Holistically,
Compliance officers are tasked with: raising
awareness; note and advice the bank; and
report any exceptions thereof.

No, there is no compliance degree YET since

it’s a new requirement for developing

9
countries like Tanzania, but it has shown so For understanding; Business units are the
much potential that it grows and becomes an first line of defense as far as designing and
integral part of an institution. Compliance operationalizing of controls is concerned.
officer needs to have unquestionable Compliance comes in as second line of
integrity, problem solving skills, detail defense to guide and advise business
oriented, interpret data, communication skills accordingly (keeping in mind that business
and two most important attributes are risk must oblige) and internal auditors comes in
analysis and updated of all changes/keep as third line of defense to ensure that the
track of all changes around the world. Its designed and operating controls are effective
compliance’s duty to ensure that the bank is and raise exceptions if there are loopholes.
made aware of the changes as well as assist
business to design suitable controls for the Scared??? Don’t be! Compliance officers are
bank to comply. your friends and have the best interests of
business units at the center of whatever we
Yes, constant disagreements are to be are doing. When you are stuck, we are just a
expected from business units (they mostly phone call/email away. Our doors are open
understand only SALES, to which we are for discussions and advises regarding work.
grateful for since increments and bonus
originate from those) but once those battles Colleagues yesterday is not ours to recover
are embraced by understanding business but tomorrow is ours to win or lose. Let us all
needs and speed, compliance officer stands be champs and ensure 100% compliance in
firmly amidst the battle lines and triumphs. everything we do since ensuring compliance
is the role of every employee!!

10
 NEWS FROM BANKS

TBA Chairman, Mr. Abdulmajid Nsekela (C) swipes a bank card to launch the “Be Smart Go
Cashless” or “Kuwa Smati Jisevie” campaign, aimed at promoting digital payments in
Tanzania. Looking on is Exim Bank CEO, Mr. Jaffari Matundu (L) and TBA Executive
Director Ms. Tusekelege Joune.

T
he Tanzania Bankers Association includes the use of electronic payments.
(TBA) and Visa, the world leader in The theme “Kuwa Smati Jisevie”, which
digital payments, today launched means Be Smart Go Cashless, is being
“Kuwa Smati Jisevie,” an education implemented by 45 banks in Tanzania who
campaign that aims to promote the use of are members of Tanzania Bankers
self-service channels in Tanzania, which Association (TBA).
11
TBA Chairman, Mr. Abdulmajid Nsekela (center, with maroon tie) demonstrating how to make
digital payments at a POS during the launching of the campaign, “Kuwa Smati Jisevie” looking
on (l to R) are Equity Bank’s CEO, Mr. Robert Gatimu, Exim Bank CEO, Mr. Jaffari
Matundu, TBA ED, Ms Tusekelege Joune, and influencers of the campaign Haika and Nareel
from the Bongo Fleva music group NAVY KENZO.

affordable access to banking services

across Tanzania, “Kuwa Smati Jisevie” is an
Mr. Abdulmajid Nsekela, Chairman of TBA, important and timely opportunity to
said, "With Tanzania self-service channels educate customers about staying safe and
growing rapidly and the ever-increasing also how to utilize available self-service
need of offering safe, convenient and financial services offered by TBA members

12
YETU MICROFINANCE BANK PLC LAUNCHES SPECIAL
BANKING SERVICES TO AGRO-PASTORALISTS AND
PASTORALIST IN MALINYI DISTRICT, MOROGORO REGION.

Mr. Altemius Millinga, CEO, Yetu Microfinance in a group photo with members of the agro-
pastoralist community in Malinyi, Morogoro Region

Access to finance has been recognized search for water and grazing land. While all
among policy makers as a magic bullet of of them are viewed as pastoralists, they have
development especially if it is inclusive. brought changes paddy farming. They have
Inclusive finance is access to a range of bigger plots of land for paddy farming than
quality financial services to the excluded local communities because of use ox-
(people with low income and limited ploughing. The program involves:
property collateral). Agro-pastoralists and
pastoralists are one of the groups which are  Training of financial literacy
financially excluded. Agro-pastoralists and including opening and use of bank
pastoralists in Malinyi District are not an account
exception. For many years banks have been  Training on use of mobile banking
shying away from these group of important and ATMs
players in our economy.  Entrepreneurship and business
training
Last week Yetu Microfinance Bank launched
a program to promote banking services to With program, the bank has started issuing
agro-pastoralists, mainly people who loans for cattle fattening and trading to agro-
migrated from Lake Regions of Mwanza, pastoralists and pastoralists in Malinyi
Shinyanga, Geita and Simiyu and the Masai. District. The loans allow them to effective
These groups of agro-pastoralists and participate in livestock trading through the
pastoralists moved to Malinyi District in weekly and monthly auctions taking place in
11 locations in the district.
13
C
linching middle-income economy Infrastructure projects tops list of middle-
status earlier than projected within income status drivers; followed by an
National Development Vision 2025 is increased emphasis of government’s intent to
a significant milestone reflecting the value of invest immensely in industries.
economic reforms; including making
consistent plans and taking hard decisions In developing economies, where most
aimed at improving its economic emerging enterprises are devoid of financial
development, according to Dr Hassan muscle, well-established financial entities are
Abbasi, the chief government spokesperson. enablers. NMB Bank plc with a
comprehensive Wholesale Banking offering

14
is taking the lead in structuring solutions for significantly within the past 10 years.
large corporates and emerging businesses. Investments in expansive country network
covering 98% of districts in Tanzania
The NMB Bank’s Head of Trade Finance through 225 branches, state of the art
department – Linda Teggisa shares technology which has led to product and
reflections of financial sector contribution multiple channel innovations to better serve
towards a successful middle-income status clients across segments and most importantly
and much more about the bank’s solutions. capacity building of the workforce resulting
in a bank with a consistent pulse on and
responsiveness to market developments.
Question: Banks among other champions; These are key elements which contribute to a
have swiftly shouldered a huge burden of bank that has been in the forefront of
financing some of ambitious national socioeconomic development, bringing value
infrastructure projects from Government. to clients who continue to support the bank’s
NMB as key stakeholders; what is your sustainability.
take on this?
Question: How does this add up to you
Ans: NMB is a key partner to the finding that we have few banks that can
Government which fully recognizes underpin national strategic initiatives –
economic priorities including infrastructure NMB bank as one of them?
development. The direction taken by the 5th
Ans: National strategic initiatives undertaken
phase Government has positively impacted
by Government entail significant funding
transportation, energy, construction and
capacity. To achieve this various funding
manufacturing sectors thus providing
options have to be factored and for that we
financial institutions with opportunities to
commend the Government for significant
deliver value adding financial services. As a
strides in improving revenue collections
leading bank, we take a favourable view to
which successfully funded a notable
these developments at national level. Rather
initiatives including roads, rail and ports
than focus on the financing challenges our
infrastructure. Financial institutions have a
contribution has to be solution driven hence
significant role in this process and this is
taking on these business opportunities and
where NMB’s capacity to finance such
working with our partners to continue
initiatives supported by Board and
supporting such projects which have clear
Management is instrumental. Projects
benefits for Tanzania.
contributing to strategic initiatives include
Question: NMB bank plc is certainly NMB’s support of over TZS 1.6 Trillion in
among the giant, leading financial entities 2019 for power generation, rural
that have and continue to contribute to the electrification, construction of standard
socio-economic development. What does it gauge railway, rural & urban roads projects
take for the bank to afford such and ports improvement.
monumental responsibility in this complex
Question: Tell us a bit about NMB Bank
business environment?
Trade Finance and difference made.
Ans: This is largely a journey of
Ans: Bank provides trade finance solutions
transformation which NMB has undertaken
to the Government, Large Corporates,
for the past two decades and more
15
Emerging Corporates, SMEs, Financial Ans: Commercial banks are typically
Institutions, and international counterparties. dispositioned to short, medium and long term
financing with tenors up to 5 years. Where
The full range of trade finance products projects require longer tenor’s collaboration
include Letters of Credit, Documentary is required with Development Finance
Collections, Guarantees, working capital and Institutions and Export Credit Agencies to
capital expenditure financing solutions. support financing structures customized to
These support our client’s day-to-day the projects, which may be up to 15 years.
business as well as financing capital goods Ultimately, the challenge is equally an
(machinery & equipment), importation of opportunity and with strong partnership with
raw material, agri-inputs and other goods or government & public institution processes
services. should be more efficient in delivering
structured financing. NMB’s financial
To this end, the bank has a highly skilled and strength positions the bank well to leverage
dedicated department within Wholesale these opportunities.
Banking division available to provide related
solutions to a broad client base. Question: How far do you aspire to be as
far as our national development vision
2025 is concerned?
Question: How could NMB bank’s Ans: The bank will continue to play a role in
financing be key to its business? How do supporting vision 2025 such as in financial
you set yourself apart from competitors? inclusion through digitized solutions within
Retail business, enhancing access to finance
Ans: NMB bank Plc, operates a client-centric of SMEs and strengthening infrastructure to
model that prioritizes relationship and facilitate trade in the hinterland and
economic returns, as well as business internationally. Our aspirations are fully
structures that enable an integrated, multi- aligned with that of the government, we are
product service offering. At NMB we focus here to contribute in taking Tanzania further.
on providing end to end solutions to our
clients. We value their business as our own
and therefore we thrive to ensure our clients
business going concern.

Question: What could be challenging

situation when it comes to financing these
projects?

16
GOVERNMENT VOWS TO WORK WITH NATIONAL BANK OF
COMMERCE (NBC) TO UPLIFT MINERS

Minister for Minerals, Hon. Doto Biteko (L) greets NBC Director of Retail Banking, Elibariki
Masuke (R) during his visit to the bank’s pavilion at the ongoing gold and technology
exhibition in Geita Region, yesterday. Looking on is NBC Corporate and Government
Relations Manager, Mr. Wlliam Kallaghe.

T
he Minister for Minerals, Doto Government Relations Manager, William
Biteko (left) greets the National Kallaghe (center). The Government said
Bank of Commerce (NBC) Director yesterday it will work with the National
of Retail Banking, Elibariki Masuke (right) Bank of Commerce (NBC) to identify areas
during his visit to the Bank's pavilion at and places of training for artisanal miners
the on-going gold and technology and entrepreneurs in the mining sector to
exhibition in Geita Region yesterday. improve their businesses across the
Looking on is NBC Corporate Affairs and country.

17
TPB AND NHIF PARTNER TO PROVIDE HEALTHCARE TO
FARMERS

T PB Bank (TPB) and the National

Health Insurance Fund (NHIF) have
entered into a ground-
breaking partnership and launched a joint
health insurance product called Mkulima
agreement between TPB, NHIF and the
farmers’ cooperative union. A farmer and
their spouse each pay an annual premium of
TZS 76,800.00. For a child under the age of
18, the annual premium is TZS 50,400.00.
Afya Kadi. This product will be offered to The farmer or family member will be able to
small holder farmers in cotton producing access healthcare at any f the more than 8,000
regions like Mwanza, Shinyanga, Simiyu, NHIF affiliated health faccilities across
Mara, Sengerema, and Tabora. TPB has Tanzania (Mainland and Zanzibar
entered into a tripartite

).

TPB CEO Mr. Sabasaba Moshingi and Director General of NHIF Mr. Bernard Konga during
the launch of the ‘Mkulima Afya Kadi’.

18
CRDB Bank, Group CEO and Managing Director, Mr. Abdulmajid Nsekela briefing members of press

C
RDB Bank has received a guarantee
of up to 110 billion from GuarantCo, a
Private Infrastructure Development that will pave way for the growth of other key
Group (PIDG) company. The five sectors such as agriculture, manufacturing
years loan portfolio guarantee will allow the and energy. Speaking on the partnership,
leading lender to more readily increase CRDB Bank Group CEO and Managing
financing of infrastructure projects Director, Abdulmajid Nsekela said the
partnership with GuarantCo demonstrates
their long-standing commitment to
supporting the economic growth of the
country.

19
Stanbic Bank Rewriting Tanzania’s Dream Narrative

S
tanbic Bank Tanzania is on a journey TZS 10 million each. These include;
that reflects the progression in the lives NovFeed, Cirlex, Pinok, Central park bees,
and experiences of all Tanzanians. In Gongalu Model.Co.
July 2020, the bank launched a new brand
promise – Finding New Ways to Make According to Stanbic CEO Kevin Wingfield,
Dreams Possible, and a new tagline - It Can these winners have not only received the
Be. The new positioning is aimed at inspiring grant but will automatically be a part of
people to dream bigger. Stanbic Bank and will gain access to financial
advisory. The winners will also have a
It Can Be reflects how the bank has continued chance to network and learn from the bank’s
to evolve in a way that meets clients’dynamic corporate clients who are looking to partner
needs while also providing solutions that with Small and Medium-Sized Enterprises
ensure Tanzania’s growth potential is fully (SMEs) as suppliers or as part of their
explored by bringing together people and enterprise supplier development
equipping them with the best tools to achieve programmes.
their dreams.
“We see ourselves as a partner that empowers
The It Can Be message was brought home the financial success of the people. We are
through the story of a Mbwana Samatta, the confident that we will continue to play a
first Tanzanian to play in the English Premier meaningful role as a transformational and
League. He showed Tanzanians that if you catalytic actor in helping Tanzanian
dream something, it can come to pass as long dreamers, as well as the country, achieve her
as you work hard to achieve your goals. development goals through supporting
business – ensuring a high-quality livelihood
Stanbic Bank stands strongly behind this for all,” said Mr. Wingfield.
message that all dreams are possible. Hence
the bank also went ahead and launched an According to the Ministry of Trade and
entrepreneur grant dubbed ‘Stanbic Industry National Baseline Survey of SMEs
Entrepreneurship Challenge’ geared towards in Tanzania, the SME sector comprises of
growing Tanzanian businesses. over 3 million enterprises that contribute to
27% of overall GDP. This shows that it is
The ‘Stanbic Entrepreneurship Challenge’ important to continue supporting SMEs to
targeted entrepreneurs who are working hard drive economic development as well as
to fulfill their entrepreneurial ambitions improved livelihoods.
through projects that have a positive social
impact on health, education, environment,
technology as well as food and
manufacturing. Five entrepreneurs bagged
Tanzania has massive potential to grow and across the commodity value chain will enable
improve its economy by creating a better access and ease of transactions in the
favourable environment for SMEs. country and global market. By leveraging
Accessibility to improved finance solutions their experienced team of advisors, Stanbic
20
has been rolling out banking products suited “By equipping people with the right tools and
to the needs of businesses. This includes innovation, we believe we are part of
Biashara direct, Africa China Agency contributing to Tanzania’s growth story to
proposition (ACAP) and, VAF products have more successful narratives of dreams
among others. realised like Mbwana Samatta,” Mr.
Wingfield added.

Stanbic Bank Tanzania Chief Executive Officer (CEO), Kevin Wingfield (left) handing over a dummy
cheque of TZS 10 million to NovFeed CEO, Diana Orembe (right), who is among the top 5 winners of
the bank’s Entrepreneurship challenge. The handover event was held in Dar es Salaam recently.
Looking on is the bank's Head of Marketing and Communications, Desideria Mwegelo (middle) . The
Stanbic Entrepreneurship Challenge was launched as part of the activities to mark the bank’s 25years
anniversary and was aimed at supporting entrepreneurs to reach their goals as well as inspire dreams
in Tanzania. Five entrepreneurs were awarded TZS 10 million each.

21
STANDARD CHARTERED BANK SCOOPS THE 2020 BEST
CONSUMER DIGITAL BANK AWARD IN TANZANIA

Ajmair Riaz, Country Head of Retail Banking, Standard Chartered Bank Tanzania

E arlier in September the Global

Finance announced the winners for
the 2020 World’s Best
Consumer Digital Banks Awards in Africa in
which Standard Chartered Bank Tanzania
Limited was announced as the Best
Consumer Digital Bank in Tanzania. This is
the third time in
a row that Standard Chartered Bank Tanzania
is winning this prestigious award from
Global Finance.
Commenting on the award, the Bank’s Head Bank launched the country’s first Full Digital
of Retail Banking for Standard Chartered Bank on Mobile which has seen the Bank’s
Bank in Tanzania, clients’ base grow to over 380% as at the end
Mr. Ajmair Riaz, said that the Bank is of August, 2020 thereby expanding banking
delighted to have won the award for the third services to more Tanzanians which is aligned
time in a row highlighting that the to the Government’s focus on deepening
recognition goes a long way to cement the financial access.
uniqueness of the Bank’s digital capabilities.
Mr. Riaz added that last year in February the
22
“We are delighted and honoured to have won chosen from entries evaluated by a world-
the Best Consumer Digital Bank Award in class panel of judges at Infosys, a global
Tanzania for the third time in a row. This leader in consulting, technology and
goes a long way to cement the uniqueness of outsourcing. The editors of Global Finance
our digital capabilities in the Retail Banking were responsible for the final selection of all
space. Last year we launched Tanzania’s first winners.
Full Digital Bank on Mobile on which
accounts are opened end to end without Only banks that entered the competition were
requiring our clients to come the Bank at any considered for awards, and awards were only
given in those regions, countries and
point in time, including for verification
categories in which there were entries.
purposes. Tanzanians have embraced the
Digital Bank and we have seen a growth of
Winning banks were selected based on the
tens of thousands of clients since the launch following criteria: strength of strategy for
on 19th February, 19. The Digital Bank offers attracting and servicing digital customers,
more than 70 banking services and is aimed success in getting clients to use digital
at giving our clients exceptional offerings, growth of digital customers,
convenience, affordability, security and a breadth of product offerings, evidence of
lifestyle. This level of exponential growth is tangible benefits gained from digital
also aligned to our commitment to further initiatives, and web/mobile site design and
deepen financial services access in functionality.
Tanzania.” Mr. Riaz said
Category winners, such as Best Mobile
This is the 21st year Global Finance has Banking App were selected based on the
named the World’s Best Digital Banks. The relative strength and success of those web
Global Finance winners include Best products and services. In addition to winning
Consumer Digital Banks, Best the Award in Tanzania Standard Chartered
Corporate/Institutional Digital Banks and the Bank also won the Best Consumer Digital
Best Islamic Digital Banks at the country Bank Award in Botswana, Cote d’Ivoire,
level. Winners were selected in Africa, Asia- Ghana, Kenya, Nigeria, Uganda and Zambia.
Pacific, Central & Eastern Europe, Latin
America, the Middle East, North America From a Regional perspective Standard
and Western Europe. Also announced were Chartered Bank emerged as a winner for the
Regional winners in Sub-Categories such as categories of Best Integrated Consumer Bank
Best Information Security and Fraud Site, Best Online Product Offerings, Best
Management, Best Mobile Banking App and Information Security and Fraud Management
Most Innovative Digital Bank Winners were and Most Innovative Digital Bank.

23
STANDARD CHARTERED BANK ENHANCES ITS GEPG
PLATFORM TO SUPPORT GOVERNMENT PAYMENTS

Mr. Christopher Vuhahula

T
he recent full move to the Government 1. The move to the Government Electronic Payment
Electronic Payment Gateway platform, Gateway platform, GePG, is now largely
GePG, by the Tanzania Revenue completed with all government payments being
Authority, has marked a big milestone in the made via this platform - How is your Bank
digitization and centralization of government supporting this move?
payments. Banks have had to speed up their
technology upgrades so as to meet the Firstly, let me start by highlighting the fact that
requirements and ensure seamless processes for the move to implementing GePG has significantly
their clients when it come to making various contributed in making the government payments
Government payments. process easy for clients. The GePG has resulted
into the creation of a central platform through
Standard Chartered Bank’s Chief Operating which all Government Agencies are connected.
Officer, Mr. Christopher Vuhahula, took time to One must remember that there are about 600
speak about how the Bank has upgraded its Government Agencies and the centralization of
banking platform to cater for its clients who use the payment process therefore means an
the bank’s government payments platform… amalgamation of all the Agencies.

And what does this Amalgamation result to?

Let me highlight two main advantages – firstly,

the reconciliation process becomes easier and
24
time saving, and secondly, there’s no room for 2. Tell us more about the solution and how your
errors. The system automatically validates the clients have adopted it this far.
payment transactions and any errors result in the
transaction being nullified. This fully eradicates The Straight2Bank NextGen solution is an
the room for errors. upgrade of our Award-Winning suite of electronic
channels that enable clients to securely and
On the other hand, I am happy to note that this effectively run their cash management services
move ties in very well with the Bank’s Strategy which include government payments. Our clients
of Digitization. We have invested a lot of can access the platform round the clock as long as
resources in enhancing our Digital Capabilities they have registered with us for usage and have
both from a Banking Platforms perspective to our internet connection.
Digital Products and Services.
In this age of changes in technology, availability
We are moving from ‘places where people go to of a number of Digital Banking solutions and
Bank’ to ‘brands clients choose for financial many competing priorities both from business and
transactions’, which means clients will have more personal levels, the Straight2Bank NextGen
choice and banking will be more convenient. platform has become an integral part of our
clients’ business activities.
In the light of the move towards GePG, which was
announced in 2018, the Bank immediately started With the Straight2Bank NextGen Solution our
to make the infrastructural investments which clients are able to make real-time credits to
were geared towards ensuring that our platforms Government Institutions. As soon as the payment
were made compatible to the changes that were is made, the user receives an instant payment
going to happen in the space and process of notification. In addition to being an end to end
government payments. We worked very closely automated process thus avoiding human error, the
with the Authorities to understand the new Solution also has an auto-reconciliation capability
processes and we are grateful for their support. that is linked to the government accounts thereby
ensuring real-time reconciliation of payments.
Specifically, for Tax Payments, Standard
Chartered Bank processes about 30% of the I am also happy to highlight that Standard
country’s tax collection. Previously our clients Chartered Bank is one of the first Banks to have
used our State-of-the-Art and Award Winning successfully complied with the changes on
Straight2Bank platform, which was not only Government Payments as well as the recent TRA
seamless but also ensured that there were errors in migration to GePG.
the transactions given a thorough validation
process. We also have the capability to process taxes for
In line with the move to GePG we have upgraded other banks on behalf of their clients, which
our Straight2Bank system into a new platform means that other Banks’ Corporate clients can pay
called Straight2Bank NextGen which has enabled their taxes via our Straight2Bank NextGen
our clients continue to pay taxes, and make other platform.
government payments, seamlessly through the
Bank effective the cross-over date. I would, therefore, like to take this opportunity to
welcome Corporate Tax payers to fully utilize our
capabilities.

25
3. As is with any technology and / or enhancements, creation as well as training. The public was well
there are usually some hic-ups before informed of the changes from the time of
stabilization. How are you ensuring a faster conceptualization to implementation. As a Bank
understanding of the changes and utilization of we have also had several engagements with the
the platform by your clients? authorities, and I would like to thank them for
their cooperation.
With every change there must be an investment in
making the users, both internally and externally,
understand the new platform(s). 4. In your opinion, is the Tanzanian market ripe for
more Digitization in financial services?
Tanzania is on a different platform when it comes
to digitization. It is one of the earliest countries to
We have spent time with our staff from relevant launch Mobile Money in 2007. According to one
departments who need to understand the changes of the studies on Digital Finance in Tanzania,
made so as to ensure that they, too, support our done by the Financial Services Deepening Trust,
clients in understanding the changes. FSDT, upon the introduction of the mobile money
We have also been running training sessions for platforms in the country in 2007, take up grew
our clients on the changes in addition to providing steadily to over 40 million registered accounts,
user-friendly step-by-step manuals to be used by and over 20 million active users by the end of
clients. 2016.

We have also launched online training material In 2015, Tanzania accounted for a third of Mobile
with ‘how-to’ guides that help our clients to Money Accounts in East Africa, with individuals
familiarize themselves and understand the and organizations transacting the equivalent of
changes. over 50% of Tanzania’s GDP each month.

Also, in order to ensure that our clients go through One of the attributes to this growth was a
the change smoothly, we had a team of staff relatively young population who were more likely
members who were on standby to hand-hold our to adopt new technology quickly. The
clients as they went through making their first demographic outlook is currently still the same.
transaction via the upgraded platform. Based on the latest United Nations population
data, 52% of Tanzanians are in the age bracket
between 15 and 64. This, therefore, means a
continued uptake in Digital Financial services.
I must, however, highlight that the changes from
Straight2Bank to Straight2Bank Next Gen are
minimal and given that our clients were already
used to the previous platform, it has not been a big I would also like to give a real example from our
challenge for the new platform to be understood Bank. In February last year we launched a Full
and adopted. There has, therefore, not been any Digital Bank on Mobile that enables users to open
major issues from an operations’ perspective. accounts fully via the SC Mobile Tanzania App.
Within 16 months we have more than quadrupled
the number of accounts that we originally had
before the launch. This shows a growing
Looking on the external perspective I also would understanding a leverage of Digital Banking
like to highlight the awareness that was done by capabilities by Tanzanians. In addition to that,
Authorities such as the Tanzania Revenue currently over 90% of our clients’ transactions are
Authority. There has been wide awareness
26
 done digitally by both Individual and Corporate preventive measures to ensure accounts are kept
Clients. safe.

6. Getting back onto the GePG platform, are there

any challenges that are being faced either by your
Bank or your clients and how are you tackling
There is also more demand for time with more them?
competing priorities be it for work or for personal
As noted earlier, there has been wide training
aspects. Instead of wasting time in traffic to move
by both the Bank and Authorities such as the
to bank branches to carry our transactions, more
Tanzania Revenue Authority.
individuals are leveraging on digital banking
From the Bank’s perspective the upgrade of
platforms so that they can have ample time to
Straight2Bank to Straight2Bank NextGen
work on their other deliverables. I see this
has not impacted our clients’ operations.
phenomenon continue to grow as time unfolds.
There continues to be a smooth transition as
our clients move to the new platform.

5. As technology advances so do the Cyber On the other hand, there are Government
criminals who come up with new ways of entities that are multi-banked.
carrying out their cybercrime activities online – Standard Chartered Bank has pioneered a
How is your Bank ensuring security for your solution within our Straight2Bank NextGen
clients? Solution such that in a situation where a
government institution does not have an
The more we move our everyday activities online, account with our Bank, the Straight2Bank
the more exposed we are to a new array of threats, NextGen system will display a list of all Bank
and the more sophisticated these threats are Accounts that the Government Agency holds
becoming. This is true for online banking, as well and our clients are able to direct the payment
as any other online activity. Having said this, to the respective Bank at which the Agency
online security measures have come a long way in holds an account or accounts.
the last few years and digital banks now offer the This capability further supports the
same level of protection as their traditional brick- Government initiative to collect revenue as
and-mortar counterparts. well as offers convenience to our clients.
Criminal use of cyber tools and channels is on the
increase. Phishing, which is the act of sending
fake e-mails from reputable companies in an
attempt to get user information, is one of the most 7. What is you advise to individuals who are
common threats. This is closely followed by still skeptical about using digital platforms
Vishing, Trojan Horses, Mule Operations, and for banking?
many other threats which we must take into
consideration when operating online. We have seen the banking landscape evolve
At Standard Chartered, as we continue to develop due to more and more users adopting online
and evolve our digital offering, cybersecurity and mobile banking into their daily financial
continues to be a top priority. Our banking activities.
systems are managed by skilled experts and In fact, according to a report by fintech
protected by multiple security lines of defense, analysts, Jupiter Research, last year digital
including firewalls and encryption. We also banking users worldwide were expected to
constantly monitor threats and online activities hit the 2 billion mark, with no signs of
round the clock to detect any fraud and take slowing down. The trend is set to continue

27
with this growth at an estimated rate of ten Chartered we will continue to invest in
percent per year. seamless online and mobile platforms, and
we aim to provide as much freedom and
Locally in Tanzania, I have touched on the accessibility to our services, and above all,
digital uptake in line with the young we want to ensure our customers’ banking
population. At our Bank we continue to see journey is a memorable one.
most banking transactions being done via our
online and mobile platforms. I have also
touched on the exponential uptake of our Full
Digital Bank on Mobile through which we
have more than quadrupled our Clients and
Accounts since we launched it in February
last year.
This is indicative of how digital is becoming
the new norm: the way we transact with each
other and with brands is becoming more
digital.

I would, therefore, urge Tanzanians to

leverage on Digital Banking. At Standard

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FUNNY JOKES

29
For Inquiries please contact:
Tanzania Bankers’ Association
1st. Floor, Faykat Building,
Ali Hassan Mwinyi Road, Kinondoni District,
P.O. Box 70925: TEL: +255 22 2668221
DAR ES SALAAM
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