The Banker Reporter PROSPER MAKENE spoke with Chief Executive Officer ROLAND COULON on the institution’s activities and other operational issues. Read on ...
Q: What is your comment on AccessBank’s financials and its overall performance?
A: Throughout the eight years of operation, the Bank has maintained an exemplary growth trajectory and managed to evolve into one of the recognized and preferred financiers of MSMEs across the country. Since its inception, the bank has issued over 775bn/- in business loans to more than 165,000 micro, small and medium-size enterprises with an average of over 3000 loans disbursed per month.
With more than 260,000 customer deposit accounts and a deposit portfolio of more than 155bn/-, our bank is also one of the leading providers of non-credit services to the lower income classes in the country.
Currently, the bank is present in Dar es Salaam (seven branches), Mwanza (two branches and a specialised agro loan outlet), Tabora, Kahama (one branch with a specialised agro loan outlet), Mbeya and soon in Iringa. The increased number of branches has enabled the bank to reach out to enterprises and individuals that previously lacked access to financial services.
Q: Lack of access to affordable trade finance is a problem in the country, what is AccessBank doing to improve the situation?
A: The bank provides the MSME sector with easy access to finance through advancing tailored loan products with the following distinctive features - fast processing-only three days after the receipt of all required documents, affordable interest rate calculated at diminishing balance method with no other fees.
No bureaucracy due to less documentation in the loan process, no any fees like application fee, legal fee, loan facility fee, loan facility letter, letter of hypothecation or goods bond, arrangement fee, disbursement fee, legal fee and commitment fee.
The approved amount is the amount that the client is going to withdraw from their account and can take up to 60 months maturity and up to 12 months grace period depending on the nature of the business.
We also providing flexible collateral requirements i.e. residential license is acceptable, third party collateral security is acceptable. Someone can secure a loan on behalf of the client and other non-title deed collaterals such as business properties, household goods and inventory. Loans can be granted without any credit history or account with the bank
The above favourable loan terms together with our fast processes have at large made it easier for MSMEs to access finance to support and develop their businesses.
Nevertheless, in 2013, the bank introduced individual loans to farmers with favourable conditions as for its business loans, leading innovation in Tanzania’s agricultural sector.
On the banking service side, we offer products/services that are easy to understand, simple to operate and suit all client groups in the micro, small and medium income bracket.
Take “RAHISI powered by AccessMobile” free account with full free mobile banking services as an example. With this, clients are now able to enjoy all banking services free of charge.
Free account opening and free maintenance, free deposit and withdrawals over the counter at any branch, free funds transfer to bank account, M-Pesa, Airtel Money and Tigo Pesa, free bill payments Luku, Dawasco, DSTV and many more, free money management (view balances & mini statements), free airtime top ups Vodacom, Airtel, Tigo and Zantel and the more transactions made, the more money saved, the more time saved.
Q: Does agricultural finance have a direct impact on jobs in the country?
A: Yes there is an enormous direct impact of agricultural financing in employment in the country although this sector has been really not looked at in terms of providing financial support to famers.
The agricultural sector contributes a reasonably high percentage in the country’s economy that is why agricultural financing is indeed needed to bring revolution and create a big number of job opportunities especially to the youth.
The young generation has failed to develop farms due to lack of capital especially for buying seeds, fertilisers, chemicals, hiring equipment and maintaining the farms.
Apparently, the country’s policies and strategies are given much priority to develop this sector, especially in aspects such as financial support to farmers.
Q: Are there any barriers to trade financiers in achieving their goals?
A: Cost of funding, raising core deposits (from current and savings) are among the major challenges that trade financiers face. This therefore drives them to rely on other sources of financing such as interbank deposits, swaps and international refinancing which are relatively expensive. This is much attributed to the fierce competition and scramble for such deposits within the banking sector.
But also there are multi borrowing practices by some clients who subsequently become over indebted due to the limited ability to repay their loans. Besides, there are what we call fraudulent activities by dishonest people, and these become worse when they collude with untrustworthy staff.
Q: What are bank’s achievements on its corporate agricultural finance programmes?
A: The uptake has been very good ever since and as of today we have issued over 21bn/- in agro loans to more than 11,000 farmers, spearheading a great deal of economic growth in the regions where the service is offered.
We are quite proud to say that we were the first financial institution in Tanzania to provide individual loans to farmers. The product was firstly introduced in mid-2013 in the bank’s upcountry branches in Kahama followed by Tabora and Mwanza (all in the Lake Zone region) in 2014.
The excellent performance and uptake of the service has pushed the bank to open one more specialised agro loan outlet in Mlowo, Mbeya and extend the service to our new Iringa branch over the course of this year.
Q: And what are the bank’s prospects for this year?
A: ABT will pursue the expansion of its branches network. We will continue to up scale the digital and other alternative distribution channels as a means to increase our outreach. RAHISI powered by AccessMobile will receive additional features allowing savings groups to use this solution and shift from traditional cash box management to fully digital.
On the side of agency banking, the bank targets to grow the number of its agents to 300 and set up cashless outlets in the rural areas by year-end, bringing its services closer to rural-unserved or underserved populations.
This progressive shift from analogue services towards digital financial services will enable the bank to pursue its higher ambition in terms of customer base and a national wide coverage.
Q: What special services does it offer and who are its targeted customers?
A: Our target clients are primarily micro, small and medium size enterprises. The product portfolio comprises micro, SME and agro loans as well as payment services, ATMs and various savings products.
What is your advice to Tanzanians particularly on the bank’s agro-loan products?
They should take advantage of the bank’s agro-loan products to uplift their livelihoods. They should view this development as an opportunity for employment and wealth creation.
Access to finance has so long been the major hindrance for the youth and Tanzanian population to engage in income generation activities, tapping to the full potential of the available agricultural financing schemes will greatly spearhead economic growth at an individual level and the country as a whole.
Q: Last but not least, what should Tanzanians expect from your bank in the next five years?
A: To become a full digital bank with a national wide coverage serving vast number of Tanzania’s population.
_0.jpg?itok=QU87XW8D){kind=tracking}
.jpeg?itok=vCj6bCRe)
