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
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
By Adedapo Adesanya
The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.
The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.
Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.
Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.
“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”
Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.
“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.
Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.
By Aduragbemi Omiyale
In recognition of its unwavering commitment to fostering access to financing for Nigerian micro, small and medium enterprises (MSMEs), Development Bank of Nigeria Plc has been rewarded with the Financial Inclusion Leadership Award at the Champions of Inclusion Nigeria Financial Inclusion Awards.
This was at the 2024 International Financial Inclusion Conference (IFIC) organised by the Central Bank of Nigeria (CBN) in collaboration with the World Bank and other stakeholders.
The chief executive of the lender, Mr Tony Okpanachi, said the recognition affirms the company’s efforts in expanding access to financial services for MSMEs in Nigeria.
“We are honoured to receive the Financial Inclusion Leadership Award, which is a testament to our bank’s commitment to expanding access to financial services for all Nigerians. This award recognises our efforts to bridge the financial inclusion gap, particularly for a priority sector like the MSMEs.
“Additionally, this award is a validation of our strategic focus on driving financial inclusion for small businesses, and we are proud to be at the forefront of this initiative that drives that. We will continue to innovate and expand our financial inclusion programmes, ensuring that more Nigerian small and startup businesses have access to services,” he stated.
On his part, the Chief Operating Officer of DBN, Mr Bonaventure Okhaimo, said the accolade demonstrates the firm’s dedication to driving financial inclusion and economic growth in Nigeria.
“This award acknowledges our Bank’s innovative approach to widening opportunities for MSMEs in Nigeria to grow and scale their businesses,” he said.
“This award will motivate us to continue pushing the boundaries of financial inclusion, exploring more innovative solutions and partnerships to expand our reach and impact.
“We are committed to ensuring that more small businesses and startup enterprises in Nigeria have access to financial services, this award will further inspire us to accelerate our efforts in this regard,” he stated.
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