Global Finance (GF): What are NMB Bank’s recent milestones in driving digital transformation?

Kwame Makundi (KM): In 2024, NMB Bank showed its commitment to technological advancement by launching over 20 initiatives that support growth and improve its offering in terms of customer experience, financial inclusion and operational efficiency. The NMB Pesa Account is a good example. This digital and cardless account-opening solution was designed for low-income households to advance financial inclusion in rural areas. Requiring a small initial deposit, the bank onboarded over 354,000 accounts in 2024.

Another successful initiative was Mshiko Fasta, a digital micro-loan product that reduced turnaround time from around five days to under 10 minutes for non-collateralised loans. These cater mainly to small- and medium-sized businesses and entrepreneurs and are accessible from mobile devices.

NMB Kikundi is an affordable and accessible digital solution enabling customers to open group accounts instantly via their phones through NMB Mkononi and USSD services with no debit restrictions and zero transfer charges. Last year, 40,000 group accounts were onboarded.

We also created FlexMalipo, a tailored payment and bill management solution for schools and religious institutions. By helping to control payment cycles, reconciliation and real-time transaction visibility – at no cost – we onboarded more than 830 schools.

GF: How has this journey of innovation enhanced NMB Bank’s performance?

KM: Our digital transformation efforts have led to significant efficiency gains. For example, in 2024 branch transactions decreased by 10%, and we improved our cost-to-income ratio by 100 basis points, from 39% the year before. More specifically, our strategic investment in loan management and enhanced IFRS 9 systems led to a reduction in our loan loss ratio to 0.97% and non-performing loan ratio to 2.9% by the end of 2024.

GF: What are the key features of the NMB Mkononi app that also differentiate the bank?

KM: This app is distinctive from all other mobile banking apps in several ways. Firstly, it offers a personalised user interface and overall improved customer experience that allows for smooth navigation through a wide range of functions. Secondly, the app provides access to apply for and manage unsecured digital micro loans, including Mshiko Fasta and Salary Advance. The app also has enhanced security features, such as strengthened biometric authentication, for a safer experience. Lastly, the app offers several value-added services, from local and international fund transfers, to savings solutions, to paying bills and making withdrawals.

GF: What inspired NMB to develop digital loans for the local market?

KM: In response to evolving customer needs, we leveraged NMB Bank’s innovation strategy to offer instant, collateral-free credit solutions that are easily accessible anytime, anywhere. In addition to reducing turnaround times, eliminating paperwork and improving customer satisfaction, we can tailor loan amounts based on real-time data, which ensures customers receive credit that matches their financial capacity, therefore fostering trust and repeat usage.

GF: How has this digital lending proposition impacted Tanzania’s banking landscape?

KM: Through our digital loans, credit decisions are made by using multiple data sources, allowing underserved individuals to access formal credit for the first time. For customers, this has expanded access to formal financial services, reducing the reliance on informal lenders while supporting broader financial inclusion across Tanzania. Since NMB Bank launched the solution in 2022, we have disbursed over three million loans to one million previously underserved customers nationwide – from entrepreneurs and women, to food vendors and motorbike and taxi drivers.

GF: What’s next on your digital banking agenda?

KM: NMB Bank is exploring emerging technologies to maintain our competitive edge in an increasingly digitised market. Current initiatives include the strategic modernisation of our core banking system. This aims to spur business growth, enhance operational efficiency, foster innovation and strengthen IT risk management. We want to bring new products to markets faster.

We are also investing in AI and machine learning capabilities to drive faster and more informed decision-making, as well as greater personalisation and real-time analytics. Talent development is also a strategic goal, making the right hires in key IT and digital roles aligned with our long-term transformation agenda.

With these and other initiatives, NMB is addressing evolving customer needs by leveraging digital channels to deliver convenience, efficiency, enhanced customer satisfaction and greater financial inclusion.