FINCA Tanzania has become the first microfinance institution in the country to transform from a non-regulated organization to an entity regulated by the Bank of Tanzania. This change in status will make it possible for even more Tanzanians living in rural areas access to formalized banking services.
According to Chief Executive Officer Tom Kocsis, 77,000 very low-income clients already have access to FINCA’s credit products. This new designation will allow the Subsidiary to branch out to new and under-served areas with additional banking services.
“With our new status as a formal financial institution, we’ll be able to reach even more people in rural areas who don’t traditionally have access to banking services,” said Tom. “And what’s most exciting is that we’ll be able to offer savings products, which is an effective way for low-income people to create their own safety nets. In this way, they can guard against emergencies and invest in their futures.”
FINCA Tanzania currently operates 25 branches country wide, and is looking to further expand financial inclusion services to more Tanzanians by integrating mobile technology into the company’s operations, which will improve access to services and improve efficiency.
“We already execute more than 30,000 repayment transactions each month using mobile money technology, and are excited to further develop alternative delivery channels to extend services to other areas, and make banking more accessible and affordable,” he added.