WSBI member TPB Bank promotes savings to everybody in East African country
>> Read TPB Bank Case study in WSBI brochure
The following piece is taken from the new WSBI brochure showcasing institute members in Africa.
BRUSSELS, 19 December 2018 – TPB Bank has been at the forefront of financial inclusion efforts in Tanzania, where some 81 per cent of the population aged 15 and older do not have a bank account. In the last five years, the bank has brought a half million previously excluded Tanzanians into the financial mainstream.
They have achieved this by being the leading bank in Tanzania when it comes to group banking. They offer different types of groups accounts depending on the type of a group. More specifically, TPB Bank has partnered with village community banks (VICOBAs), Village Savings and Loan Associations (VSLAs) and informal groups. TPB has also implemented different programmes and services to reach the rural population such through mobile and agent banking.
VICOBAs aim to reduce poverty by providing savings and credit services, facilitate the funding for the startup of income-generating activities in the community, and provide credit to fund expenses such as their children’s education. VSLAs are groups in targeted communities to provide sustainable and profitable microfinance services – especially in remote places with no access to formal financial services. These are self-managed groups that proved members with a safe place to save money, acquire small loans, and obtain emergency insurance. Women represent approximately 70 per cent of the population. TPB initiated this scheme to build a relationship with these groups via NGOs as the gateway.
Relatedly, TPB created a group product for groups composed of up to five members – considered informal groups – who save their money and want to seek a way to store it safely outside of home. This scheme allow the groups to save their money with no cost, no ledger fee, and no withdrawal fee. All four offerings have seen deposits swell. Bank deposits grew by 6%, VICOBA by 16%, VSLA by 44% and informal groups by an impressive 96%.
On the digital financial inclusion front, TPB offers free mobile banking transactions to all group clients in VICOBAs, VSLAs and other set groups. This service is provided to encourage rural clients to use bank accounts through agency banking. This service helps to reach the financial excluded as there are more mobile accounts than traditional financial accounts. In 2013, there were 31.5 million mobile accounts, 11 million remain active.