CRDB Bank-India Desk is a platform for traders that allows them to utilize the bank’s numerous financial facilities without necessarily having to open accounts with the financial institution.
Speaking in an interview with Smart Money, CRDB Bank Director of Marketing and Research, Tully Mwambapa, said the platform’s transactions in 2014 were 976 and rose to 5,779 in 2015, which is a 17 per cent increase.
Mwambapa also said that the Desk’s projection in 2016 is set at 2.5bn rupees (about 75.2bn/-). She said that so far, more than 1,000 traders had benefited from it.
“The Desk has come a long way since its inception in 2014. It is doing fine, with many stakeholders making use of it. At the moment the bank has allowed individuals from companies that hold accounts with us to remit their salaries without opening an account,” she said.
She added: “The idea is to give them a chance to experience our services and thereafter convince them to open an account. This strategy has proved to be successful.”
Asked on the contribution of CRDB Bank-India Desk in the market share of financial transactions between Tanzania and India, Tully said that the desk has substantially contributed to improved trade between India and Tanzania, by fast-tracking funds transfers, processing of letters of credit, offering competitive exchange rates as well as financing trade deals.
“This package of portfolios coupled with improved customer service has made the desk to have great influence in the market share of financial transactions between India and Tanzania,” she said.
She noted: “Despite the success, the Desk has been facing challenges, which somehow impede its performance. For instance, requirements for credit applications are very rigid, an example being security cover which is 154 percent as compared to 125 percent, which is recommended by the Bank of Tanzania (BoT).”
“The other challenges that we face are some of the banking services related to the Desk’s operations attract comparatively higher rates and charges such as withdrawal charges, service fees as well as salary processing,” she said.
Replying on the CRDB Bank plan to open up more desks overseas, she said: “The establishment of new desks or any new bank enterprise will depend on the assessment and consents from corporate strategy drives.”
She explained that with the launch of Non Resident Indians (NRI) Alliance with ICICI Bank, CRDB expects to get more customers. The move will provide an avenue of sharing information, thus, prompt andefficient business solicitation, she said.
Commenting on the CRDB-India Desk during its launch in 2014, CRDB Managing Director, Dr Charles Kimei said: “This facility will do more than enhance business activities between us because it will further contribute in enhancing social and political relations between Tanzania and India.”
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