NMB ENHANCES PUBLIC FUNDS MANAGEMENT WITH INNOVATIVE DIGITAL FINANCE SOLUTION

NMB Bank, in partnership with the President’s Office – Regional Administration and Local Government (PO-RALG), has officially launched a novel digital banking solution designed to revolutionize financial management across local council entities.

Speaking at the launch event in Dodoma, the lender’s Head of Government Business & Capital Office, Ms Vicky Bishubo, highlighted that the digital finance initiative represents a major milestone in the country’s digital transformation journey toward a cash-lite economy.

She said that the transformative online banking service provides local government authorities (LGAs) with a unique opportunity to enhance public fund management, strengthen financial transparency, and significantly cut overhead operational costs, ultimately improving service delivery and fiscal efficiency.

“This digital solution will enable local government authorities to access real-time financial data, streamline transactions, and enhance accountability in public fund management,” Ms Bishubo pointed out.

She further emphasized that the solution also facilitates a wide range of online payment services and transactions

Given its robust capabilities, we urge the Government to broaden the range of services available to councils, enabling them to fully harness this advanced internet banking system for enhanced efficiency and improved public financial management," she added.

The digital banking solution was designed to address challenges faced by LGAs and their affiliated institutions in accessing banking services, such as officials having to make long and costly trips to bank branches just to retrieve basic account information or process transactions.

“With this new system, they can now monitor government expenditures, view account balances, and access transaction statements remotely,” Ms Bishubo stated.

The solution was piloted in ten councils - including major city councils such as Dar es Salaam, Dodoma, and Mwanza - before being expanded nationwide. By December 2024, over 1,000 schools and health centers had successfully integrated into the system.

Its key benefits include enhanced financial oversight, allowing local governments to track real-time transactions and maintain greater control over public funds. The system also improves cost and time efficiency by eliminating the need for travel to bank branches, reducing administrative expenses, and streamlining operations.

Furthermore, the digital banking solution strengthens transparency and accountability by simplifying auditing and financial reporting, ensuring accurate records for better governance and minimizing the risk of mismanagement.

Ms. Bishubo highlighted NMB Bank’s substantial investment in technology-driven banking solutions to support government financial operations, positioning it as a key strategic partner—particularly in online revenue collection for local councils.

As the first bank integrated into the Government Electronic Payment Gateway (GePG), NMB continues to play a vital role in digital revenue collection. Additionally, its new internet banking system is integrated with the Government’s MUSE payment platform, streamlining financial transactions across various government institutions.

Ms Bishubo urged local government officials to fully embrace the new banking solution, as it aligns with Tanzania’s broader digital economy vision.

The event also marked the launch of a two-day training seminar on the new technology for treasurers and accountants from 184 LGAs across the country. It was graced by PO-RALG’s Permanent Secretary Adolf Ndunguru who commended NMB Bank for its technological investment and commitment to fiscal discipline.

According to him, the digital banking solution represents a significant step forward in modernizing financial management at the local government level, paving the way for a more transparent, accountable, and efficient public sector.

Mr. Ndunguru noted that since TAMISEMI ventured into e-government initiatives in 2017, substantial benefits have been realized, including the elimination of paperwork and considerable savings in both time and financial resources.

On her part, the Director of Local Government at the President's Office, Ms Angelista Kihaga, emphasized that adopting internet banking had become inevitable due to its positive outcomes during the pilot phase and the ongoing digital transformation in the public sector, which necessitates financial systems that align with modern technologies.