ZANZIBAR, Tanzania – September 16, 2026 — NCBA Bank Tanzania has called for a shift in how financial institutions approach small and medium-sized enterprise (SME) financing, emphasising the potential of digital technology, transaction data and innovative financing models to make credit more accessible, affordable and responsive to the realities of growing businesses.
The call was made during the Tanzania Bankers Association (TBA) Research and Financial Inclusion Conference 2026, held at Kwanza Resort Hotel in Zanzibar on September 3–4, 2026.
NCBA Bank Tanzania Chief Executive Officer, Alex Mziray, participated in a high-level panel discussion themed “Catalysing SME Growth: The Role of Innovative and Digital Financing Solutions,” alongside leaders from across the financial services ecosystem.
The discussion explored how innovation and digitalisation can address some of the longstanding barriers limiting SMEs' access to finance, with Mziray highlighting how commercial banks can leverage technology, data and alternative financing models to better serve businesses.
Moving beyond traditional collateral
Mziray noted that one of the fundamental challenges in SME financing is not necessarily a lack of appetite among financial institutions, but rather the economics of serving smaller businesses through conventional lending models.
Many SMEs do not have audited financial statements or traditional forms of collateral such as titled property. At the same time, increasingly digitised businesses are generating valuable transaction footprints through mobile money, electronic payments, point-of-sale transactions, invoices, supplier payments and credit bureau records.
According to Mziray, these data points create an opportunity for financial institutions to assess the actual cash flows and behaviour of businesses rather than relying predominantly on physical assets.
“Digital, for me, is not a channel story. It is what makes small-ticket lending commercially viable in the first place,” Mziray said.
This transition towards cash-flow-based lending has the potential to broaden access to finance for businesses with viable operations but limited conventional collateral.
Digital technology can improve affordability
Mziray pointed to NCBA Group's experience with digital financial solutions, including M-Pawa in Tanzania, alongside M-Shwari and Fuliza elsewhere in the region, as examples of how alternative data and digital channels can enable financial institutions to serve customers who may not fit traditional credit-assessment models.
Digitalisation can also help address the cost of providing smaller loans.
Technology can reduce the operational costs associated with loan origination and administration, while improved customer data can help financial institutions better understand and price risk.
Mziray further noted that affordability should not be viewed solely through the headline interest rate. The structure and repayment period of a financing facility should also correspond with the transaction or trading cycle of the business it is intended to support.
Financing that follows the business cycle
Beyond improving access and affordability, NCBA highlighted the importance of designing SME financing around the way businesses actually operate.
Potential solutions include financing distributors at the point of order, invoice financing at delivery, lending against transaction flows and repayment structures aligned with different business cycles.
Asset and equipment financing can also provide an alternative route for businesses that face traditional collateral constraints, particularly where the financed asset itself can provide security for the facility.
Such approaches position financial institutions not simply as providers of credit, but as partners supporting entrepreneurs to acquire productive assets, expand operations and build sustainable businesses.
Partnerships key to unlocking digital SME finance
Mziray also stressed that unlocking the full potential of digital SME financing will require stronger collaboration across the financial ecosystem.
Banks do not hold the entire financial footprint of an SME. Relevant information may be distributed across telecommunications companies, payment aggregators, fintech platforms and bookkeeping systems.
Greater interoperability and responsible data sharing could therefore enable financial institutions to develop a more complete understanding of customers and create financing solutions that more accurately reflect their businesses.
Mziray noted that viewing the future of financial services as a competition between banks and fintech companies could overlook significant opportunities for collaboration.
Fintech companies can bring data, technology and customer acquisition channels, while banks contribute balance-sheet capacity, regulated financial infrastructure and institutional trust. Partnerships between the two sides can therefore play an important role in expanding responsible access to finance.
Innovation must be matched with responsible lending
While highlighting the opportunities created by digital finance, Mziray cautioned that innovation must be accompanied by responsible lending practices.
He emphasised the importance of affordability assessments, comprehensive credit bureau reporting and transparent pricing as safeguards against over-indebtedness.
Fraud prevention and data protection are also becoming increasingly important as more financial activity moves onto digital platforms.
For NCBA, expanding SME finance is therefore not simply about increasing the volume of credit available. It is about applying technology, data and appropriate financing structures to better understand businesses and support sustainable growth.
As Tanzania continues to strengthen its digital financial ecosystem, NCBA remains focused on its purpose of “Banking on Belief, Empowering Ambitions”, supporting entrepreneurs and businesses with solutions designed to help them invest, expand and build productive capacity.
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