NMB
Bank Tanzania, the full name of National Microfinance Bank Plc., is a dynamic commercial bank rooted in Tanzania, a land full of economic potential. It is not a state-owned or joint-venture bank, but a typical example of the transformation through privatization, showing a magnificent transformation from government control to market-oriented operation.
Name & Background
NMB Bank Plc. was established in 1997 as a result of the Tanzanian government's split of the old National Bank of Commerce and was initially positioned as a national microfinance institution. In 2005, the bank took a key step in privatization, and the Tanzanian government sold a 49% stake to Rabobank in the Netherlands, starting a journey of internationalization and marketization. In 2008, NMB was listed on the Dar es Salaam Stock Exchange (DSE) under the ticker symbol NMB, further diversifying its shareholding structure. As of September 2023, its major shareholders include strategic partners Arise B.V. (34.9%) and the Government of Tanzania (31.8%), with the remainder being institutional and individual investors.
Scope of
ServicesNMB Bank takes the whole territory of Tanzania as the core of its services, covering all regions of the mainland and the island of Zanzibar, which can be called a "ubiquitous financial partner". As of 2023, the Bank has 231 connected physical outlets, located in urban and rural areas, and in remote areas, fulfilling its commitment to financial inclusion. In addition, NMB operates more than 715 ATMs and nearly 28,000 agent points (Wakala) to provide customers with convenient deposit and withdrawal services.
Regulation &
ComplianceNMB Bank is strictly regulated by the Bank of Tanzania to ensure that its operations comply with national financial regulations. The bank has joined Tanzania's deposit insurance program to provide security for customer deposits and boost user confidence. Recent compliance records show that NMB has performed well in risk management and compliance, with no major breaches. It has an internal Audit, Risk and Compliance Committee (BARCC) with the Chief Risk and Compliance Officer (CRCO) responsible for day-to-day oversight of credit, operational, liquidity and market risks.
Financial HealthNMB
Bank's financial performance is like a towering tree that grows strongly, with solid foundations and a bright future. As of 2023, the bank's total assets amounted to 12.2 trillion Tanzanian shillings (about US$4.1 billion), ranking second in the Tanzanian banking sector after CRDB Bank. Key Indicators:
Capital adequacy ratio: Maintain a high level of Tier-1 capital ratio, which far exceeds regulatory requirements and reflects its resilience.
Non-performing loan ratio: Remains at 3.2% in 2023, below the regulatory threshold of 5%, demonstrating excellent asset quality.
Liquidity Coverage Ratio: Thanks to 11% deposit growth and centralized liquidity management, NMB's liquidity performance is solid enough to cope with market volatility.
These indicators show that NMB is not only a model of financial health, but also a reliable choice for investors and customers.
Deposits & Loan
ProductsDeposits: NMB provides a wide range of deposit products to meet the needs of different customers. Current accounts (e.g. Chap accounts) are free of account opening fees and are suitable for daily use; Fixed Deposit Account offers competitive interest rates, which vary depending on the deposit amount and tenor, usually between 4% and 7% per annum, and are suitable for customers who are looking for stable income. Featured products such as the Wajibu account are designed for children to help parents save for their children's future; The Jiwekee Digital Retirement Savings Plan provides flexible options for individual retirement.
Loans: NMB's loan products cover housing loans, car loans and personal credit loans, with interest rates fluctuating according to market conditions and customer credit ratings (usually between 10% and 20% per annum). Mshiko Fasta is an innovative short-term digital loan of up to 500,000 Tanzanian shillings, without collateral, which can be applied for via the NMB mobile app or USSD code (15066#) for a period of up to 28 days with extreme flexibility. The bank also offers unsecured SWL loans, designed for government employees and private sector employees, with fast approval and flexible repayments.
List of common
feesNMB is committed to transparent fees, but customers should still be aware of the following fees:
account management fee: Regular current accounts are usually free of monthly fees, but some high-end accounts may charge a small annual fee (about 10, 000-50,000 Tanzanian shillings).
Transfer fees: Domestic transfers via NMB Mkononi are usually free of charge, while cross-border transfers (SWIFT/TISS) charge a fee of 0.5%-1% depending on the amount.
Overdraft fee: Depending on the account type, it is usually 1%-2% of the overdraft amount per month.
ATM interbank withdrawal fee: NMB has been connected to 17 Umoja Switch banks to reduce interbank withdrawal costs of about 2,000-5,000 Tanzanian shillings per transaction.
Hidden Fee Alert: Some accounts require a minimum balance (e.g. 50,000 Tanzanian shillings), below which a penalty may be triggered, customers are advised to check their balance regularly.
Digital Service
ExperienceNMB's digital platform, NMB Mkononi, is the best example of its innovative power. The mobile app has a user rating of around 4.2/5 on Google Play and App Store, which is widely praised. Core features include:
face recognition: for secure login and transaction verification.
Real-time transfer: Support real-time transfer between accounts and inter-bank payment.
Bill management: one-click payment of utility bills, mobile phone recharge, etc.
Investment tools: Integrate the government securities investment portal to facilitate customers to participate in the primary market.
In terms of technological innovation, NMB has introduced AI-driven customer service to optimize the trading experience. Supports Lipa Mkononi (QR code payment) and is compatible with Mastercard and Visa networks; The open banking API is still in the exploratory stage, but it has been interconnected with platforms such as Umoja Switch to improve the service ecosystem. NMB also analyzes data to personalize product recommendations, demonstrating the perfect combination of technology and customer needs.
Customer Service
QualityNMB is customer-centric and provides multi-channel services:
24/7 Telephone support: toll-free hotline 0800002002 and quick response.
Live chat: Live support via the NMB Mkononi app.
Social Media: On LinkedIn and Twitter (@NMBTanzania), the response time is usually within 1 hour.
In terms of complaint handling, the average resolution time of NMB is 3-5 working days, and customer satisfaction is high (about 85%). The bank supports English and Swahili, with local language services available in some regions to meet the needs of cross-border and local customers.
Security Measures
: NMB participates in the Tanzania Deposit Insurance Scheme to protect customer deposits (the exact limit depends on the account type, usually covering small and medium-sized deposits). Banks use real-time transaction monitoring and multi-factor authentication to protect against fraud risks.
Data security: NMB is ISO 27001 certified, and its information security management system meets international standards. No major data breaches have been reported in recent years, and customer data protection measures are tight.
Featured Services & DifferentiationNMB
performs well in the market segment:
Student account: Chipukizi account is fee-free, encouraging young people to develop a saving habit.
Exclusive financial management for the elderly: Jiwekee Digital Retirement Plan provides flexible savings solutions for senior customers to plan for retirement.
Green Finance: NMB has invested more than 6.2 billion Tanzanian shillings in education, health and climate-related projects, in response to ESG investment trends.
High Net Worth Services: Private banking services provide customized wealth management for high net worth clients with a threshold of approximately Tanzanian Shillings of around 50 million and cover portfolio management and tax planning.
Market Position & Accolades
NMB Bank is the largest listed bank in Tanzania by market capitalization, with a market capitalization of 2.25 trillion Tanzanian shillings in 2023, ranking among the highest in the East African region. Although it does not rank in the top 50 in terms of global asset size, it ranks among the top communities in East Africa and ranks third in terms of profitability. The bank has won numerous awards:
- won
the Euromoney "Best Bank in Tanzania" award for 10 consecutive times from 2013 to 2023.
In 2023, Global Finance Magazine named "Tanzania's Safest Bank".
In 2019, he was awarded the "Best Blended Finance Partner in Africa" award by the World Bank Group IFC.
