How NCBA recorded Sh20 billion in net profit by banking on Tanzania's digital drive

Dar es Salaam. NCBA is on a course to bridge Tanzania’s financial inclusion gap by leveraging its digital assets to boost the bank’s operations and reach.

 After recording impressive profits for the 2023 financial year, the local lender has officially launched its innovative mobile banking application, ‘NCBA Now’ to streamline access to financial services in the country.

Apart from recording over Sh20.16 billion of net profit last year, which represents a 157 percent growth rate, the bank also posted growth in customer deposits by 91.5 percent to Sh262.5 billion. Total assets grew by 14.5 percent to Sh515.5 billion.

The bank is now looking to cement and sustain its top performance by investing more in innovation and digital tools.

As a result, the new and improved mobile application is set to support its commitment to providing innovative banking solutions across East Africa and beyond.

According to the statement issued by the bank, it plans to expand this digital initiative with the upcoming launch in Uganda, Rwanda, and Ivory Coast.

NCBA Tanzania’s managing director, Mr Claver Serumaga, said the ‘NCBA Now app’ represents a revolutionary advancement in customer banking experiences, offering a comprehensive suite of features accessible anytime, anywhere.

“This app offers our customers full control over their finances, allowing them to monitor their accounts in real-time, manage their cards, and make transaction service requests of up to Sh5 million in value, all in one place,” he said.

Mr Serumaga said the app facilitates multiple fund transfers simultaneously, bill payments, and instant mobile wallet transactions, ensuring a seamless and secure banking experience.

The bank's Group Managing Director, Mr John Gachora, said this launch is also part of the institution’s initiative towards the achievement of the United Nations Sustainable Development Goals (SDGs) through sustainability and digital transformation.

“The bank has undertaken various initiatives contributing directly to the SDGs, such as climate action (SDG 13) through tree planting. Additionally, our digitization efforts, exemplified by the NCBA Now app, not only enhance customer experience but also advance SDG 9 (Industry, Innovation, and Infrastructure) by promoting technological innovation and SDG 12 (Responsible Consumption and Production) by reducing paper usage and promoting digital transactions," he said.

When it comes to digital businesses, NCBA has been at the forefront with products such as M-Pawa, which is currently the second largest mobile lending platform in Tanzania and has played a significant role in banks financial results for 2023.

M-Pawa’s digital lending alone disbursed Sh100 billion worth of loans and attracted Sh25 billion in revenue.

According to the bank, the rollout of the NCBA Now app, which can be accessed through the App Store or Google Play Store, is envisioned to further propel NCBA's 2024 financial results as it continues to redefine the banking experience and empower customers to achieve their financial goals with ease.

The bank’s MD, Mr Serumaga, added that NCBA is now opening doors into two key sectors, namely construction and tourism.

At the launch event, Treasury Registrar Mr Nehemiah Mchechu commended the bank for its innovation, transparency, and large customer base, which exceeds 60 million across all the countries where they operate.

He noted that all these customers will now have digital connectivity through the NCBA Now app, which simplifies banking services on mobile devices, thereby increasing financial accessibility for both urban and rural areas.