Global Finance (GF): What are the recent stages of NMB Bank in digital transformation?
Kwame Makundi (km): In 2024, NMB Bank showed its commitment to technological progress by launching more than 20 initiatives that support growth and improve its offer in terms of customer experience, financial inclusion and operational efficiency. The NMB Passe account is a good example. This solution to open digital and card -free accounts has been designed so that low -income households advance financial inclusion in rural areas. Demanding a small initial deposit, the bank integrated more than 354,000 accounts in 2024.
Another successful initiative was Mshiko Fasta, a product of digital micro-lines which reduced the execution time by approximately five days for less than 10 minutes for non-collateralized loans. These are mainly aimed at small and medium-sized enterprises and entrepreneurs and are accessible from mobile devices.
NMB Kikundi is an affordable and accessible digital solution allowing customers to open group accounts instantly via their phone via NMB MKONONI and USSD services without debit restrictions and zero transfer charges. Last year, 40,000 group accounts were integrated.
We have also created Flexmalipo, a tailor -made payment and invoice management solution for schools and religious institutions. By helping to control payment cycles, reconciliation and visibility of transactions in real time – at no cost – we have integrated more than 830 schools.
GF: How did this innovation trip improved the performance of NMB Bank?
Km: Our digital transformation efforts have led to significant efficiency gains. For example, in 2024, branch transactions decreased by 10%, and we have improved our cost-up-up ratio of 100 base points, compared to 39% the previous year. More specifically, our strategic investment in the management of loans and our improved IFRS 9 systems led to a reduction in our loan loss ratio at 0.97% and a non -efficient loan ratio at 2.9% by the end of 2024.
GF: What are the main characteristics of the NMB MKONONI application which also differentiates the bank?
Km: This application is distinguished from all other mobile bank applications in several ways. First, it offers a personalized user interface and an improved overall customer experience which allows smooth navigation through a wide range of functions. Secondly, the application gives access to demand and management of unmarked digital micro-care, including Mshiko Fasta and Advance salary. The application also has improved safety features, such as reinforced biometric authentication, for a safer experience. Finally, the application offers several value -added services, transfers of local and international funds, savings solutions, payment of invoices and realization.
GF: What inspired the NMB to develop digital loans for the local market?
Km: In response to the evolution of customer needs, we have exploited NMB Bank’s innovation strategy to provide instant credit solutions and without guarantee that are easily accessible at any time. In addition to reducing execution times, eliminating documents and improving customer satisfaction, we can adapt the loan amounts according to real -time data, which guarantees that customers receive a credit that corresponds to their financial capacity, thus promoting confidence and repeating use.
GF: How did this digital loan proposal affect the banking landscape of Tanzania?
Km: Thanks to our digital loans, credit decisions are made using several data sources, allowing people who are un served to access the first time in formal credit. For customers, this has widened access to formal financial services, reducing dependence on informal lenders while supporting a broader financial inclusion through Tanzania. Since NMB Bank launched the solution in 2022, we have paid more than three million loans to one million customers previously served nationally – entrepreneurs and women, food sellers and motorcycle and taxi drivers.
GF: What is the next step in your digital banking program?
Km: NMB Bank explores emerging technologies to maintain our competitive advantage in an increasingly digitized market. Current initiatives include the strategic modernization of our main banking system. This aims to stimulate business growth, improve operational efficiency, promote innovation and strengthen IT risk management. We want to bring new products to the markets faster.
We also invest in AI and automatic learning capacities to conduct faster and more enlightened decision -making, as well as greater personalization and real -time analyzes. The development of talents is also a strategic objective, which makes the right hires in key and digital and aligned computer roles on our long -term transformation program.
With these initiatives and others, NMB meets customer development needs by taking advantage of digital channels to offer convenience, efficiency, increased customer satisfaction and greater financial inclusion.
