Local Banks should draw Strategies to cover 85% of Tanzanians still unbank.

LOCAL banks should draw strategies to cover 85 per cent of Tanzanians still unbanked who are mostly in rural areas. The Azania Bank Limited Managing Director, Mr Charles Singili, made the call shortly after the iftar organised by his bank in Dar es Salaam over the weekend.

Mr Singili said it was high time banks stopped competing over big customers but find the mechanism of going to rural and remote areas where many people were still un-banked. "Many banks have concentrated on fighting for big customers especially in towns without focusing on the potential of people in rural areas.

"Statistics indicate that only 15 per cent of the Tanzanians have bank accounts, banks need to draw strategies to bring on board people with no bank accounts at the moment. "This should go in line with tailor-made products to target people with average incomes," he said.

Mr Singili said it's on such a background that his bank is now focusing on extending its footprint in the lake Zone by opening up a new branch in Geita before the end of next month and another branch in Mtwara before the end of the year.

Asked on the bank's view on launching the sharia banking product that has recently been launched by a number of banks in the country, Mr Singili said his bank does not have the necessary infrastructure to support the product at the moment.

"The Sharia banking product requires a lot of expertise and infrastructure which we do not have at present. We will however make research on whatever it takes to put in place the product and communication when the right time comes," he said.

Earlier Twalib Ahmed Lubangula speaking on behalf of Azania bank customers expressed faith in the bank adding that they (customers) will continue to support the bank in various aspects.

"We enjoy stress-free banking at Azania Bank due to the fact that there are no queues. The bank started with only one branch but has managed to open up more branches within a short time which is a sign that the bank is on the right path. We are proud to be a part of the bank's growth," he added.