Tanzania Postal Bank's Sustainable Partnerships: A case study of our relationship with Tanzania Postal Corporation

Tanzania Postal Bank's Sustainable Partnerships:

A case study of our relationship with Tanzania

Postal Corporation

Mr. Sabasaba K. Moshingi CEO Tanzania Postal BankWednesday 4th March 2015

TANZANIA IN CONTEXT

Basic Facts: Population 47.42 million (2014).

Total GDP 30.32 billion (2013).

GDP growth in 2015 projected at 7.2% .

Inflation hovered at 4.8% in December 2014.

Area 945,087 square km.

55 licensed banks.

Financial Inclusion 14% (Finscope Survey 2013).

Discovery of huge natural gas reserves of 200 trillion cubic feet-worth USD 2,000 bn.

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Tanzania Postal Bank is one of the oldest banks in Tanzania (90 years).

Established in 1925 as Tanganyika Post Office Savings Bank offering banking services through a network of posts offices.

After liberalization of Tanzanian economy, in 1991, Tanzania Postal Bank was established by Act #11 of 1991 as a separate NBFI regulated by BOT.

Government owned Bank (84% Government of the United Republic of Tanzania, 10% Tanzania Posts Corporation, 3% Zanzibar Government, 3% TP&TC SACCOS).

Offers banking products like savings accounts, loan products such as Micro loans, personal loans, business loans, as well as money transfer services.

700,000 customers, 75% of them having average balances of TZS. 100,000.

29 full fledged branches, 21 mini branches/agencies and 135 TPC Agencies, 30 own ATMs joined to 188 Umoja ATMs.

Total Assets 298 billion, total deposit 263 billion, total loans 197 billion.

TANZANIA POSTAL BANK IN CONTEXT

KEY DIMENSIONS TO OUR PARTNERSHIPS

Financially viable.

Gap in the market.

Sustainable.

Touches on our values: Customer Focus. Intergrity. Financial Inclusion. Affordability. Quality.

Clearly identify how both parties benefit.

Strengthen our brand.

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OUR PARTNERSHIPS

CASH COLLECTION FOR CITIBANK

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TPB:

29 Branches.

21 Mini Branches.

Handling TZS 44 billion* for Citibank.

Citibank:

1 Branch nationwide.* per month

TANZANIA SOCIAL ACTION FUND CASH DISBURSEMENT TO THE POOR

AND VULNERABLE

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TPB:

Won tender for disbursement of funds to poor households.

Pilot to see how model would work.

70 recipients.

Disbursements of TZS 50,000 each.

CASH COLLECTION FOR STANDARD CHARTERED

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TPB:

29 Branches.

21 Mini Branches.

Handling TZS 3.4 billion* for SCB.

Standard Chartered:

5 Branches nationwide. * per month

CASH COLLECTION FOR TANZANIA REVENUE AUTHORITY

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Channels:

29 Branches.

21 Mini Branches.

Receive on behalf of tax authorities:

Domestic tax* - 6,082 transactions - TZS 1,045 mn.

Driving license fee* - 10,959 transactions - TZS 361 mn.

* per month

UNIT TRUST OF TANZANIA AND THE SALE OF PLOTS

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Sale/Compensation for plots of land:

Bukoba.

Mapinga.

Sengerema.

Lindi.

Morogoro.

10,982 accounts.

TZS 13,327 million collected.

TANZANIA PETROLEUM DEVELOPMENT CORPORATION COMPENSATION

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Compensation for residents affected by the implementation of the Songosongo gas pipeline project:

5,000 beneficiaries.

Over TZS 2.8 BN disbursed.

INTERGRATION WITH MOBILE MONEY

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TPB has linked it's Mobile Banking

product 'TPB POPOTE' to all mobile money

providers!

EMBEDDED IN THE MOBILE MONEY ECOSYSTEM

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MOBILE MONEY

SUPER AGENT Electronic float. Cash float. TZS 45 billion float

made available*.

* per month

WASTAAFU LOAN

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EXPONENTIAL WASTAAFU LOAN GROWTH

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TANZANIA POSTAL CORPORATION

OUTREACH

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Shareholder: 10% of TPB. Mini Branches:

18 located in TPC premises.

POPOTE POS: 43 Tanzania Posts Corporation Offices.

Western Union: 135 Post Offices Corporation Offices.

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TUNDUMA MINI BRANCH

Border with Zambia.

District population 97,562*.*Tanzania Census 2012

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TUNDUMA MINI BRANCH

Deposit transactions 7,457

Deposit TZS 11,166 mn

Loan Disbursements 1,539

Loan Portfolio TZS 1,330 mn

Western Union Transactions 880

Western Union Volumes TZS 431 mn

Mobile Money Transactions 9,548

Mobile Money Volumes TZS 10,056 mn

Cash Remitted to Main Branch (Mbeya).

TZS 7,548 mn

Quarterly

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WESTERN UNION AGENT AT KIBONDO POST OFFICE

Frontier Town near Burundi.

District population 261,331*.

*Tanzania Census 2012

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WESTERN UNION AGENT AT KIBONDO POST OFFICE

CHALLENGES

TPC lacks liquidity.

Poor customer service.

Poor physical evidence.

Fraud.

Poor staff morale.

Customers associate TPC and TPB as one.

Financial operators with more financial muscle go after same distribution points.

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THE WAY FORWARD

Liquidity management in Mini Branches and TPC offices.

TPC staff training and reward scheme. Improve physical evidence and branding. Controls and risk based audits. Constantly improving TPB brand awareness. Vigilante in identifying and acquiring locations to

have first-to-market advantage. Exit non-performing TPC locations for viable TPC

locations. Established a joint committee to oversee relationship.

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THANK YOU