CRDB facts and figures:
- Established in 1996
- 1,000,000 customers
- Head Office in Dar Es Salaam, Tanzania
- US $2.1 billion assets
- Ranked 2nd bank in Tanzania, 2nd best capitalized commercial bank
- 335 ATMs
- 118 branches
- 984, upgrading to 1700 POS terminals
CRDB Bank had to find the most innovative way to provide banking services to the unbanked population of Tanzania taking into account the following challenges:
- Extremely dispersed population - 1 person per km² in some areas
- In excess of 80% of population based in rural areas
- Poor level of infrastructure
- Only 5% of adult population with access to financial services
CRDB Bank, an established CR2 customer using our solutions to power their ATM, POS and card management channels, decided to further utilise POS capabilities from CR2’s self-service banking platform - BankWorld. They wanted to support a fully functioning agency banking network in addition to the use of GPRS and Ethernet technologies. Named in Swahili as ‘fahariHuduma’, the agency banking business model comprises of a network of agents contracted by a bank throughout Tanzania to administer a set of selected banking services in areas where the bank is not already present, on their behalf. Agents are compensated on a per transaction/ commission basis.
How does it work?
On the customer side, upon verification of a manual application form, they are enrolled and issued with a TemboCARD (a pre-paid VISA/MasterCard) and starter pack. Upon receiving this card, the customer is then able to set their customised PIN and can immediately deposit cash and undertake transactions. From the bank’s perspective, POS is an effective way to serve customers where internet connectivity is limited and/or branches are not widespread. Furthermore, it remains a secure means to transact due to PIN protection. Transactions Available via CRDB Bank Agency Banking Network:
- Cash Withdrawal
- Cash Deposit
- Card Less Deposits (via Simbanking)
- Bill Payment f Balance Enquiry
- Forced PIN Change
CRDB Bank has reported that their BankWorld-powered agency banking scheme has been met with strong adoption and growth rates thus far which has directly impacted the Bank’s success via:
- Fast acquisition of new customers
- Reduction of costs to serve customers in remote areas with the use of POS and reduced operational costs as the bank can utilise existing infrastructure to launch new services
- Increased customer satisfaction by enabling clients to bank anywhere, anytime in a secure environment
- Generation of new revenue through increased transaction volume
On the operational side, the bank has the ability to manage and view their entire client relationship through CR2’s integrated platform enabling both strong customer service and consistency of offering across their distribution network.
Looking ahead, other innovative CR2 services that are being explored to complement CRDB Bank’s existing solution include; streamlining the customer acquisition process further via account creation, mobile to mobile payment services and an electronic voucher remittance system whereby customers have the ability to send money to recipients which will be made immediately available across the bank’s entire ATM network. These services have the ability to support growing customer enrolment numbers, and also offer a uniquely cost effective solution for the Bank and customers alike.