As the year 2020 comes to an end, I personally take time to reflect, the months gone by, milestones we have reached and challenges we encountered during the course of the year. We ushered in 2020 with high hopes and thirst for success backed by plans and many targets. Like everyone else, CRDB Bank Plc also welcomed the year with anxiety to improve livelihoods of Tanzanians.
To us, this was a third year of implementing our five-years strategic business plan for 2018-22 period. The plan is primarily focused on improving our service delivery with more investment in digital platforms which ease access to banking services and products. We are doing this with strong belief that, in a rapidly dynamic world where time is more valuable, investment in innovative technology is important towards achieving our goal of transforming lives in our community.
Looking back in 2019, over 80 percent of customer transactions were done on our digital platforms, our target was to reach 90 percent this year. One can easily see how we planned to improve and innovate enabling digital tools and platforms. This meant deploying most of our services and products digitally including account opening, tax and utility bills payments, loans, forex and bancassurance. That was our vision which was made well ahead of the coronavirus outbreak.
I don't think anyone had a pandemic in their business plan at the beginning of the year. To us, the priority was to our people, staff members, customers, partners and the business itself. We improved our business strategy to ensure safety of the people and enable them navigate through Covid-19 challenges.
Mobilization to boost digital banking utilization
In order to address this challenge, the Bank launched a campaign to mobilize use of digital banking platforms dubbed ‘Popote Inatiki’. This campaign was designed to respond to health experts advice that people should resort to digital banking tools and avoid cash transactions. The good thing is that, the Bank had already invested heavily in digital banking channels ahead of the Covid-19 outbreak hence we simply resorted to sensitizing customers on usage.
Through the campaign, customers have learnt the various digital platforms that they can use to access banking services without visiting a physical branch. Alternative banking channels such as SimBanking, SimAccount, Internet Banking CRDB Wakalas were given priority in serving customers. This did not only mean that services were delivered safely to customers but also, we managed to include many more Tanzanians who were not accessing formal financial services.
The success of Popote Inatiki campaign prompted us to launch another campaign called, ‘Tupo Mtaani Kwako’. The the two campaigns whereby have helped us bring our services closer to our customers and provide financial education to more than 100,000 people, both urban and rural in Mainland and Zanzibar Isles. This was a major success for the bank.
Innovation in the midst of challenges
In order to navigate safely, we felt that we needed to have an inclusive system which will enable us collect opinions from customers and Tanzanians in general, that will help us come up with customized solutions. The bank successfully rolled out an innovative digital solution to collect customer feedback. The QR Code system allows customers and the public submit their suggestion from anywhere and at any time using their mobile phones or any digital gadget. I thank our customers for the massive positive response, so far, we have received over 5,000 suggestions have helped us improve our services.
During the year, the Bank also introduced in the market digital loans targeting retired customers and other members of the public known as Pension Advance. This innovative product was inspired by the fact that many retirees of advanced age can be served without compromising their health. This product allows retirees to get up to Tshs 1m loan digitally through SimBanking Application.
The bank is proud of this innovative product which to a bigger extend has enabled retirees continue living their dreams. Pension Advance joins a list of digital loans being disbursed by the bank alongside Salary Advance, Boom Advance and Jiwezeshe targeting petty traders (Machingas). All of these loans are interest free.
Assisting businesses navigate through COVID-19
Apart from its deadly health impacts, Covid-19 has also caused a major global economic downturn. Many businesses have been affected globally because lifestyles have changed dramatically. This pandemic did not spare our country because of its trade interactions with other countries in the world. Many businesses and the private sector were affected negatively.
With this in mind, our bank put in place a strategic plan to assist business people from different sectors of the economy to overcome this challenge. The bank in collaboration with the business community, did an impact analysis of how the pandemic affected customers and developed a plan to provide relief to the most affected customers. More than 10,000 traders were able to benefit from this program.
In an effort to help businesses increase efficiency and revenue collection, the Bank has also helped businesses integrate into a digital payment system. In so doing, customers have also been allowed to pay online for goods in a safe and secure manner through use of TemboCard, Point of Sale and SimBanking through our QR Code or a special purchase number. This has enabled many businesses to boost their revenue.
The Bank also continued to integrated its digital collection with Government’s institutions through ‘GePG’ to enhance tax and fees. This means during the challenging times, customers continued to pay their tax conveniently and safely wherever they are using our digital platforms, at a nearest CRDB Wakala or branch. Our digital collection system has proved successful to a large extent in boosting collection of Zanzibar Government in tourism sector. In 2019 we managed to help the Government collect USD 12 million in 2019, hopefully we will surpass that this year.
I take this opportunity to also commend the measures taken by the Government to safeguard the stability of the financial sector and business environment in general. The measures have proven effective to spur economic growth in the market despite the challenges brought by Covid 19 the pandemic.
Supporting Tanzania Agenda
Over the course of 24 years, CRDB Bank has been pro-actively supporting meaningful socio-economic development in our country through our Corporate Social Investment (CSI) Policy which put an emphasis on health, education and environment sectors. Through this policy, the Bank believe that strengthening the health sector is an important investment in order to groom a healthy nation. The Covid-19 was a major challenge to the global health system. As a Tanzanian bank, its our commitment to work with the government and other stakeholders to improve this important sector in the development of our nation.
Based on our understanding of the challenges which the sector was going through, we organized an online symposium for stakeholders in the health sector. We discussed the various hurdles being encountered but also offered our support to help them improve services rendered to Tanzanians. Among other things, we outlined opportunities for credit facilitation to assist them purchase medical equipments and drugs, but also hospital, health centres, clinics and pharmacies administration loans. Over 600 health service providers and other stakeholders from across the country were able to attend and access these opportunities.
In addition, we also did direct contributions to support the fight against the Covid-19 pandemic. Through our Corporate Social Responsibility Policy, the Bank and its contributed over Tshs 200m to fight against the virus. We also made direct contributions of personal protective gear to frontline health workers and other related institution but also to our staff members and customers.
In 2020, we also launched three major initiatives through our CSI Policy that focus on fostering health, environment and youth empowerment; CRDB Bank Marathon, Pendezesha Tanzania in partnership with Vice President’s Office and CRDB Bank Taifa Cup in partnership Tanzania Basketball Federation (TBF).
Achievements in 2020 and future expectations
Despite of the numerous challenges faced in 2020, our Bank has continued to perform well in the market. Third quarter report shows that revenue grew by 31 percent to Tshs 120bn compared to Tshs 92bn made during a corresponding period in 2019, this also equals the cumulative profit we made during FY 2019. Hopefully we will close this year with a historic performance in our Bank. This remarkable financial performance is to a bigger extent possible by the confidence from customers and Tanzanians in general.
The confidence is because of our sustained innovations of digital banking solutions which has led to increased efficiency and accessibility of services to customers. I am writing this article with immeasurable happiness to inform you that the Bank has achieved its target of having 90 percent of transactions done on digital platforms. The digital way of banking has also helped our customers navigate both human and business impact of Covid 19. This is a major success with which we are happy and proud of, we have made it.
We are welcoming 2021 in digital style. Next year, our target is to invest more in digital outlets and deploy most of our services digitally. Are you ready for a digital lifestyle and embrace the future of banking? I humbly welcome you to join CRDB Bank. Wishing you all a Happy New Year 2021!
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