African Conference on Remittances and Postal Networks Day 1 S4 N1 Moshingi Tanzania Postal Bank

1. Tanzania Postal Bank's
Sustainable Partnerships:
A case study of our
relationship with Tanzania
Postal Corporation
Mr. Sabasaba K. Moshingi
CEO Tanzania Postal Bank
Wednesday 4th March 2015

2. 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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3. 3
 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

4. 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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5. OUR PARTNERSHIPS

6. CASH COLLECTION FOR CITIBANK
6
TPB:
 29 Branches.
 21 Mini Branches.
 Handling TZS 44 billion* for Citibank.
Citibank:
 1 Branch nationwide.
* per month

7. 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.

8. 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

9. 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

10. 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.

11. 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.

12. INTERGRATION WITH MOBILE MONEY
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TPB has linked it's
Mobile Banking
product 'TPB
POPOTE' to all
mobile money
providers!

13. 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

14. WASTAAFU
LOAN
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15. EXPONENTIAL WASTAAFU
LOAN GROWTH
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16. TANZANIA POSTAL CORPORATION

17. 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.

18. 18
TUNDUMA MINI BRANCH
 Border with Zambia.
 District population 97,562*.
*Tanzania Census 2012

19. 19
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

20. 20
WESTERN UNION AGENT AT
KIBONDO POST OFFICE
 Frontier Town near Burundi.
 District population 261,331*.
*Tanzania Census 2012

21. 21
WESTERN UNION AGENT AT
KIBONDO POST OFFICE

22. 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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23. 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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24. THANK YOU