Banking
FINCA Deepens Financial Inclusion in Tanzania via FinTech
By Dipo Olowookere
FINCA Microfinance Bank, as part of efforts to deepen financial inclusion in Tanzania, has commenced an awareness campaign showcasing the importance of saving and educating customers on how the new technology works.
FINCA said it hopes that with this service, customers can open a savings account from their mobile phones in less than five minutes without leaving their homes. With their free accounts, customers can set savings targets – like paying for their children’s education – and earn free mobile airtime as they achieve their goals.
“We recently launched HaloYako, an innovative mobile savings account that is easy to use, convenient to access, free from fees and tailored for low-income business owners for their future investments.
“It took FINCA 20 years to reach 900,000 clients evolving from a micro finance to a fully-fledged commercial bank. In two weeks of launching the HaloYako platform, 30,000 people have opened accounts. This goes to show how FinTech plays a critical role in lowering transaction costs and expanding access to financial services,” Managing Director of FINCA Tanzania, Issa Ngwegwe, stated.
According to the 2014–2016 Tanzania National Financial Inclusion Framework, the level of formal financial access in the rural areas of Tanzania is 8.5 percent compared to 23 percent in the urban areas and totally excluded rural population is 60 percent compared to 45 percent in urban areas.
Also, the ninth edition of the Tanzania Economic Update highlighted the country’s extraordinary progress in bringing financial services to 62 percent of its population today compared to 11 percent in 2006, making it a regional leader in the use of digital financial services and putting it on a solid footing to achieve Universal Financial Access by 2020
Hundreds of thousands of low-income people have gained access to financial products including credit, savings and money transfers through leveraging of technology to bring financial services closer to the unbanked.
Despite these significant developments, full financial sector integration continues to elude Tanzania, and the argument is that to promote and sustain financial inclusion growth there must be mobilization of savings to allocate them to households, businesses, and government for productive investments.
FINCA Microfinance Bank says it believes that for markets to work well and correctly, every customer is entitled to fairly priced and transparent financial products—along with information to empower them to make educated decision for their financial future.
“FINCA’S 30 year-old global mission has been to improve our customer’s standard of living with products that serve their best interests. Technology is enabling hundreds of new entrants into banking — and many bring sorely needed innovation and fresh ideas,” said Ngwegwe. “But there remains a risk that in the drive for profits, financial services can lose sight that we exist to serve our customers.” This makes commitments to social responsibility for corporates more important now than ever.
FINCA says it believes that listening to people is the best way to understand the needs of a community and that the best solutions to our continent’s most pressing challenges come when local entrepreneurs are empowered to become change agents for their communities.
“We connect communities to entrepreneurs and support access to affordable life-improving products through FINCA loans. By doing so, FINCA is at the center of coining solutions for some of the most challenging development issues of our continent,” explained Ngwegwe.
There is still a lot of work to be done. Access to financial services in developing countries would offer more of the world’s poor the opportunity to feed themselves and increase their potential income. “FINCA is proud to be an essential partner in the financial inclusion revolution,” the bank chief added.
Universal Financial Inclusion has been a goal of responsible financial service providers for decades. With an innovative technology product like HaloYako, FINCA is closer to a day where every Tanzanian, no matter where they live or how much they earn, not only has financial power, but it is accessible at the palm of their hands.
By Modupe Gbadeyanka
About N3.6 trillion has been repaid to the Central Bank of Nigeria (CBN) by the Asset Management Corporation of Nigeria (AMCON) since its inception in 2010.
This information was revealed by the chief executive of AMCON, Mr Gbenga Alade, during a media parley to update the press on the activities of the agency.
Mr Alade said at the moment, the organisation still owes the central bank about N3 trillion for toxic assets of banks in the country.
He praised the organisation for its asset recovery drive, stressing that when compared with others across the world, Nigeria has done well.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
“Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent.
“Only the Korean Asset Management Corporation (KAMCO), South Korea, has achieved more recoveries than AMCON, with about 100 per cent. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate.
“Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany.
“So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realized,” Mr Alade stated.
On the financial performance of AMCON, he said last year, the firm posted a revenue of N156.25 billion and operating expenses of N29.04 billion, while for the 2025 fiscal year should be a revenue of N215.15 billion and operating expenses of N29.06 billion.
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
By Aduragbemi Omiyale
A partnership aimed to enable seamless, real-time and secure transactions for cardholders across Africa and the rest of the world has been entered into by Payattitude and PAPSSCARD, the card scheme initiative of the Pan-African Payment & Settlement System (PAPSS).
The collaboration will allow Payattitude cards issued by banks and other deposit-taking institutions to be co-branded with PAPSSCARD, Discover, Diners and Pulse for acceptance across their networks in Nigeria, Africa and worldwide.
As an initiative of the African Export-Import Bank (Afreximbank) and a key financial infrastructure supporting the African Continental Free Trade Area (AfCFTA), the PAPSSCARD scheme will facilitate instant cross-border payments in local currencies.
“This partnership reflects our commitment to cross-enterprise alliances and enabling inclusive, efficient, and borderless payments across Africa and the world
“With Payattitude, Nigerian cardholders and financial institutions can now enjoy the benefits of a Nigerian card that can be used worldwide,” a director at Payattitude, Dr Agada Apochi, said.
The acting chief executive of PAPSSCARD, Mr John Bosco Sebabi, said the aim is “to connect African payment ecosystems, reduce the cost and inefficiencies of cross-border payments, and strengthen African sovereignty over payments infrastructure.
“Collaborating with Payattitude, a key innovator in Nigeria’s payment space, represents a significant step towards a more unified African payment landscape.”
The chief executive of PAPSS, Mr Mike Ogbalu, said, “By bringing together PAPSSCARD’s robust cross-border payment capabilities with Payattitude’s leadership in the Nigerian digital payments, we are taking tangible steps toward building a single African market where individuals and businesses can transact easily and securely, both within and beyond Africa.”
Payattitude is the first-in-kind Nigerian Payment Scheme to pioneer multibank App and USSD Code *569#.
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