The National Microfinance Bank (NMB) has announced plans to enhance financial inclusion using mobile phone technology blended with internet services.
The bank envisages to use the platform to enable people to save thus do away the cash in- cash out trend, NMB Managing Director, Ms. Ineke Bussemaker said.
He said the mobile technology would enrich banking coverage and bring many closer to financial services including offering micro loans.
The NMB Chief Risk Officer, Mr. Tom Borghols, said in this year the bank plans to have some 250 banking agents to increase its outreach of its 163 brick and mortar branches.
“We will place agents banking to the places where we don’t have branches…so as to reach many,” Mr. Borghols said.
NMB RECORDS A TSHS 4 TRILLION BALANCE SHEET GROWTH, LARGEST IN THE BANKING INDUSTRY
Though National Microfinance Bank’s profitability in the quarter one of 2015 slowed down in a quarterly basis the balance sheet grew substantially …
Though National Microfinance Bank’s profitability in the quarter one of 2015 slowed down in a quarterly basis the balance sheet grew substantially to Tshs 4 trillion, which is the largest in the banking industry, NMB Chief Financial Officer, Waziri Barnabas said.
The NMB said its net profit has slowed down as the result of reviewing lending procedures to maintain low defaulting ratio, as opposed to claims that the strategy was part of competition.
NMB, the biggest bank in term of profitability, said despite a profit slowdown of 0.5 percent to Tshs 38.36 billion during the first quarter of 2015, the firm’s balance sheet is very healthy.
“The slowdown does not relate to competition on the ground, but a result of consolidated and risk management, as well as prudent lending,” Mr. Barnabas said.
He said the bank wants to be predictable, consistent and sustainable without any slips… but things will be okay in the remaining quarters.”
However, NMB’s Chief Risk Officer Tom Borghols said they still maintain a good chunk of government business but focus on prudent lending to maintain low NPLs.
“We put a break on lending toward the end of last year (2014), which affects our revenues…we are now lending and your will see better results for the rest of the year,” Mr. Borghols said.
NMB, NPLs ratio is among the lowest in the industry that almost stagnated at 2.6 percent. The industry benchmark is 5.0 percent. Profit (slowdown) has no link with government business.