The Tanzania Postal Bank (TPB), a Tanzania-based financial services organization, recently partnered with the World Savings Banks Institute (WSBI), a Switzerland-based international banking association, and the Bill and Melinda Gates Foundation (BMGF), a US-based nonprofit organization, to launch a new mobile banking service called “TPB Popote” that aims to increase the financial inclusion of low-income people in rural regions of Tanzania. According to Lettice Rutashobya, chairman of the Board of Directors of TPB, the new initiative will enable Tanzanians to withdraw and deposit money at designated “Points of Service” around the country, and all other transactions will be possible via mobile phone [1,2]. Tanzanian President Jakaya Kilkwete expressed hope that this program will not only help Point of Services reach 50 percent of Tanzanians by 2015, compared to the current 14 percent, but also assist the Tanzania Social Action Fund, a separate government-run initiative to alleviate poverty among rural families in the country. BMGF will provide a monetary grant of an unspecified amount in order to pursue this goal [1]. Additionally, WSBI will offer logistical support for TPB Popote [3].
Fearing that TPB is losing competitiveness, the bank’s chairperson Rutashobya reportedly urged the government of Tanzania to change TPB “from being a government owned entity to a publicly owned bank” and to loan TPB approximately TZS 10 billion (USD 6.3 million) to offset an alleged shortfall of capital. Ms Rutashobya purportedly believes that these actions will improve the effectiveness of TPB Popote [1].
As of year-end 2012, TPB has total assets of TZS 167 billion (USD 106 million), a gross loan portfolio of TZS 101 billion (USD 63.8 million), total deposits of TZS 139 billion (USD 87.8 million), 631,000 customers and operations in 28 branches across Tanzania. The number of depositors is unavailable. WSBI has operations in 90 countries as of July 2013 and serves 600 million customers and has total assets of member institutions of USD 15.6 trillion as of year-end 2010. As of July 2013, BMGF has a total endowment of USD 36.4 billion, operations in approximately 100 countries and has awarded USD 26.1 billion in grants since its inception in 1994.
By Michael Averell, Research Associate
About Tanzania Postal Bank (TPB)
Established in 1991, the Tanzania Postal Bank (TPB) is a Tanzania-based financial services organization that provides depositors who do not have access to banks a way to promote savings. As of year-end 2012, TPB has total assets of TZS 167 billion (USD 106 million), a gross loan portfolio of TZS 101 billion (USD 63.8 million), total deposits of TZS 139 billion (USD 87.8 million), 631,000 customers and operations in 28 branches across Tanzania. The number of depositors is unavailable.
About World Savings Banks Institute (WSBI)
Established in 1924, World Savings Banks Institute (WSBI) is a Switzerland-based international banking association that represents savings and retail financial services organizations. WSBI has operations in 90 countries as of July 2013 and employs 2.2 million people, serves 600 million customers and has total assets of member institutions of USD 15.6 trillion at year-end 2010.
About Bill and Melinda Gates Foundation (BMGF)
Launched in 1994, the Bill and Melinda Gates Foundation (BMGF) is a US-based nonprofit organization that provides grants to organizations with the aim of enhancing health care, reducing poverty and expanding access to education and information technology. The foundation’s “Financial Services for the Poor” initiative focuses on providing people with secure places to save money. To support this initiative, the foundation works with financial organizations to increase access to technology and to forge partnerships among mobile phone companies, banks and microfinance institutions. As of July 2013, BMGF has a total endowment of USD 36.4 billion, 1,100 employees, operations in approximately 100 countries and has awarded USD 26.1 billion in grants since its inception.
Sources and Additional Resources
[1] Ipp Media: “TPB launches banking service,” http://www.ippmedia.com/frontend/index.php?l=57173
[2] Tanzania Postal Bank [TPB]: “About TPB Popote,” http://www.postalbank.co.tz/index.php/en/products/tpb-popote
[3] World Savings Banks Institute (WSBI) Press Release: “WSBI working with their members on an international effort to increase savings accounts among the poor,” http://www.wsbi.org/template/content.aspx?id=3958
MicroCapital story, May 25, 2012, “MICROCAPITAL BRIEF: World Savings Bank Institute Members to Offer Financial Training, Products Aimed at Unbanked,” https://www.microcapital.org/microcapital-brief-world-savings-bank-institute-members-to-offer-financial-training-products-aimed-at-unbanked/
MicroCapital story, November 5, 2009, “MICROCAPITAL BRIEF: World Savings Bank Institute (WSBI), European Savings Banks Group (ESBG) Celebrate World Thrift Day,” https://www.microcapital.org/press-release-world-savings-bank-institute-wsbi-european-savings-banks-group-esbg-celebrate-world-thrift-day/
MicroCapital story, July 26, 2013, “MICROCAPITAL BRIEF: Government of Malawi Joins Better than Cash Alliance (BTC) to Adopt Electronic Payments,” https://www.microcapital.org/microcapital-brief-government-of-malawi-joins-better-than-cash-alliance-btc-to-adopt-electronic-payments/
MicroCapital story, June 25, 2013, “MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN), Bill and Melinda Gates Foundation Create “Geospatial Mapping of Financial Institutions” Program to Reach Unbanked Nigerians,” https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-cbn-bill-and-melinda-gates-foundation-create-geospatial-mapping-of-financial-institutions-program-to-reach-unbanked-nigerians/
MicroCapital Universe Profile: Tanzania Postal Bank (TPB) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Tanzania+Postal+Bank+%28TPB%29
MicroCapital Universe Profile: World Savings Banks Institute (WSBI) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=World+Savings+Bank+Institute+%28WSBI%29#Additional_Resources
MicroCapital Universe Profile: Bill and Melinda Gates Foundation (BMGF https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bill+and+Melinda+Gates+Foundation
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