Transforms FINCA from Brick and Mortar Operations to Digitized Solutions

In the space of over 50 operating Banks in Tanzania, with over 50 million population, only 17 per cent of adults in Tanzania are said to have access to banking services. Where else it’s estimated that over 65 per cent of the households have a mobile phone according to FinScope Study of 2017.

The study also highlights that mobile financial services are highly driven by Telecoms with an estimation of 65 per cent in Tanzania. This indicates how financial services are not only now provided by Financial Institutions like Banks and Microfinances but also Telecoms who set up a more personalized touch of the services.
In understanding the convergence of tools, the need of digitization and the opportunity to financially include the remaining space of 83 per cent of Tanzanians with no access to Banks but needed trusted way to financial services – FINCA Microfinance Bank Tanzania in May 2017 introduced a ground-breaking way to financially include the unbanked through Digital Field Automation (DFA) – a Bank at hand near customers doors.

DFA, stars a revolution enabling Client Relationships Officers (CROs) to open new Accounts, start initial loan application process, score client and disburse loans anywhere and anytime. The tablets are also powered with a biometric function which is used to set up secured access for clients as they open accounts.

“The Bank’s in Tanzania are known for most brick and mortar process which involves a lot of paper work hence time consuming in opening accounts and loans processes” explains Issa Ngwegwe, the CEO of FINCA Microfinance Bank Tanzania. He further went on to explain that “DFA brought the revolutions Tanzanians wanted, a Bank of service at their door steps. The Bank’s CROs can now open Accounts, Score and disburse loans anywhere. This adds value to our Customer Experience initiative”.

Since DFA started operating, the Bank has been able to inject more efforts in financial inclusion as it has been able to reach out to more unbanked population in both remote and semi urban locations in the country. “DFA has not only enabled the Bank to digitize and ease the process but to also reach to over 20,000 new FINCA Accounts and been able to disburse over 40 loans in the pilot phase worth of over 135 Million Shillings as of late July ” explains Alfred Vendeline, the COO of FINCA Microfinance Bank Tanzania.

“In addition the technology has enabled the Bank to grow non-credit revenue, mobilize deposits through account opening anywhere, enhance customer experience and cut operational costs as well as increase efficiency” Alfred continues.

“Turn-around time of process has been remarkable with DFA, customer’s data are now also secured and there is no duplication of details as we used to experience on paper works as electronic forms and biometric reduces risk for errors and protect customer information” highlights Alfred.

The technology also ensures high level of risk management as it uses valid customer identification cards like National ID to complete the KYC part as it is connected to the country’s National Identity Card Authority. The platform also allows on-line credit scoring based on FINCA loan enterprise data and credit history, all this is to ensure transparency in the workflow with audit trial.
In the event that most Tanzanians shy away to open account because the Banks are far away from their households or business areas, long queues in the branches and a lot of paper work, DFA has filled that gap as the CRO’s can easily visit them at their homes and respective business locations.

FINCA Microfinance Bank continues to grow strong even after 20 years of operations in Tanzania, reaching out to about 1,000,000 Tanzanians who were “unbankable”. With DFA in place, the Bank believes it will easily serve more clients and enable them financially.

“Our customers are the heart of our business and DFA technology adds the value on how we serve them with quick turn-around time” finishes Issa.