NIC Bank Launched, targets Tanzania SMEs

Newly-rebranded NIC Bank Tanzania has embarked on an aggressive branch expansion targeting small and medium-sized enterprises across the country.

Already, the bank has been able to streamline its operating environment considerably through the introduction of branch connectivity across all branches, enhancing controls and monitoring over the credit process.

“The move has leveraged synergies with our Group Head Office on technology acquisition, delivery and alignment of staff jobs more clearly to their roles in the organization,” said NIC Bank Tanzania Managing Director & Chief Executive Officer, James Muchiri. The bank’s headquarters are located at Harbour View Towers Ground Floor Harbour View Towers, Samora Avenue.

Since last year, the Bank has embarked on a branch expansion strategy with an eye on SMEs by initially setting up a new branch on Shauri Moyo Street in Ilala. Other locations being considered are both in Dar Es Salaam as well as in the rest of the country such as Kahama and Mbeya with a strategy of being a “One Stop Shop” financial services provider for Tanzania.

According to Mr Muchiri, alongside opening new branches, the bank is actively pursuing other service delivery channels for its customers and plans are under way to introduce ATM services, Online Banking and SMS Banking.

To date, the history of the Tanzanian financial institution is rich having marked major milestones along the way to become a fully fledged financial institution.

History

For starters, NIC Bank Tanzania began operations in 1994 as Saving & Finance, initially operating as a Non-Bank Financial Institution (NBFI) and in 1994 converted into a fully fledged Commercial Bank. It continued operating as Saving & Finance Commercial Bank Ltd, (S&F) until last year when it rebranded as a subsidiary of NIC Bank Group after the latter acquired a 51% stake in the organization.

“The acquisition of Savings & Finance marked a new dawn in Tanzania’s banking scene since we embarked on offering customers exemplary products and services that were relevant to Tanzania and that uphold NIC Bank Group’s values of innovation, passion, integrity, professionalism and responsiveness,” said Mr Muchiri in a recent interview.

Financial Performance

While releasing NIC Bank Group’s 2010 full year results last month in Kenya, Mr. James Macharia, the Group Managing Director, attributed the positive results to favorable results by the Bank’s subsidiaries. “All the Bank’s subsidiaries were profitable in 2010. In particular, the Bank’s maiden foreign acquisition, NIC Bank Tanzania Limited (formerly Savings & Finance Commercial Bank Ltd.) recorded a significant turnaround in performance, posting satisfactory profits in 2010 compared to a loss reported in 2009,” said Mr. Macharia.

Besides NIC Bank Tanzania, other subsidiaries under NIC Bank Group are an investment bank, NIC Capital, a stockbrokerage, NIC Securities, and NIC Insurance Agency Limited.

The experiences gained from this first cross border investment will go a long way in informing future expansion initiatives.

For more information, kindly view: http://tz.nic-bank.com/