FINCA Becomes the 50th Licensed Bank in Tanzania

FINCA Tanzania has been awarded a license by Bank of Tanzania (BoT) to become the first Microfinance Institute in Tanzania and the 50th bank in the country.

The previously non-regulated seed money creditor, known for its collateral-free Village Banking services will now be regulated by BoT.

As he unveiled the certificate at FINCA Headquarters in Dar es Salaam, the institution’s Chief Executive Officer Tom Kocsis said “having been in business in Tanzania for only 15 years this achievement is historic”.

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He added: “It is an important step towards financial inclusion as FINCA brings over 73,000 clients mainly from rural areas.”

The new and high in demand microfinance banking service will start in its Dar es Salaam-based branches and gradually spread to other branches across Tanzania.

The CEO said the development has come as a result of the institution’s growth strategy and a response to demand demonstrated for years by their clients, adding that banking products were expected to increase the firm’s clientele base tremendously.

FINCA Bank Tanzania was established in 1998 and since then offered various banking and development solutions to the country.

The strategic launch of its microfinance service comes at a time when Tanzania is transitioning from low-income to middle-income status and microfinance will be a key aspect of economic growth for the country.

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