NMB SET TO PUSH NATION TO CASH-LESS SOCIETY

New National Microfinance (NMB) Managing Director, Ineke Bussemaker gestures when she met reporters (not in the picture) in Dar es Salaam recently. On the right is Chief Finance Officer, Waziri Barnabas and on the left is Chief Risk Officer, Tom Borghols.

The National Microfinance Bank (NMB) said recently it plans to enhance financial inclusion using mobile phone technology blended with internet services.

Though, some quarters see mobile transaction as cash in-cash out, the bank wants to reverse the phenomenal and create a cashless society where almost all payments are done through mobile handsets.

The NMB Managing Director, Ms Ineke Bussemaker, said the bank envisages to use the platform to enable people to save thus do away the cash in-cash out trend.

“If a farmer can pay all of his bills-buying fertiliser, seeds, school fees - using mobile phone...you don’t need cash to live,” Ms Bussemaker, an IT expert, said. Ms Bussemaker, who has an arm-length of bank experience spanning 30 years, added “(but) they must believe and trust the (mobile phone) platform.”

The newly appointed Managing Director said the mobile technology would enrich banking coverage and bring many closer to financial services including offering micro loans. Ms Bussemaker, who was with Citibank before joining NMB, has been in the country several times.

The press conference which was held last week, was the first one after her appointment. 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 Chief Financial Officer, Mr Waziri Barnabas, said though its profitability in quarter one reduced, the balance sheet grew substantially to 4tri/-, which is the largest in the industry.

“The slowdown does not relate to competition on the ground but was the results of the bank’s brake to consolidate with risk management. It is a prudence lending,” Mr Barnabas said.

Mr Barnabas said the bank wants to be “predictable, consistent and sustainable without any slips...but the remaining quarters financial are going to be okay.”

NMB net profit went up slightly by 0.5 per cent to 38.36bn/- reduces by fund set aside for probably bad debts.

The bank used 70bn/- in branch renovation and construction to increase its network to 163, being largest in the country. CRDB Bank the immediate rival has some 120 branches. NBM also has some 500 ATMs.

Daily News