VisionFund launches app with instant digital services

Arusha. VisionFund Tanzania Microfinance Bank Limited (VFT) has launched a mobile banking application that allows customers to open accounts, save, access loans and make selected payments using their smartphones.

The VFT Smart Banking App, launched in Arusha yesterday, is part of the bank's digital transformation strategy aimed at extending financial services beyond its branch network.

A key feature is the Dunduliza Group Account, which enables members of savings groups to borrow up to three times their savings without collateral, according to the bank statement.

According to the bank, the product seeks to combine the savings discipline and group-based lending model associated with VICOBA with digital banking.

VFT Chief Executive Officer, Mr Rogathe Godson, said the launch represented a shift in how the bank delivers services to its customers.

“The launch of VFT Smart Banking represents a significant step in the transformation of VisionFund Tanzania and how we serve our customers,” he said.

“Our strategy is to make financial services more accessible and to take banking beyond our branches, bringing it closer to where our customers live, work and conduct their businesses.”

VisionFund Chief Operating Officer, Mr Deogratius Siria, said the Dunduliza account was designed to address some of the limitations associated with conventional group savings and lending arrangements.

Mr Siria said the product offered loans at an interest rate of 4 percent per month, with repayment periods of up to three months.

“Dunduliza combines the security, transparency and social strength of group savings with the speed, affordability and flexibility of digital banking,” he said.

The application also enables customers to pay bills, government levies and Lipa Namba transactions without transaction charges, according to the bank.

VFT Chief Financial Officer, Mr Henry Horombe, said transaction costs remained one of the barriers to wider adoption of digital financial services.

“The transition to a digital economy can only be meaningful if ordinary customers, particularly those at the bottom of the pyramid, can participate in it affordably,” he said.

He said removing charges from selected digital payments could encourage more people to shift from cash-based transactions to digital platforms.

“Our goal is not simply to digitise banking. It is to make digital banking accessible, affordable and useful, so that technology creates real value for customers and enables more Tanzanians to participate in the digital economy,” Mr Horombe said.