TCB banks on digital innovation to drive financial inclusion

DAR ES SALAAM: TANZANIA Commercial Bank (TCB) has reaffirmed its commitment to digital innovation as a central pillar in expanding financial inclusion—particularly for the country’s large base of small and medium-sized enterprises (SMEs).

TCB Managing Director Adam Mihayo said the lender aims to accelerate the rollout of digital financial services and simplify access to credit and savings for underserved businesses.

“This financial year, our goal is to further improve operational efficiency by leveraging digital technology—driving growth in a sector that serves as a cornerstone of the national economy,” said Mr Mihayo during the bank’s 33rd Annual General Meeting yesterday.

SMEs represent over 95 per cent of all businesses in the country and contribute around 35 per cent to GDP.

Many of these enterprises are increasingly transacting across digital channels, underlining the importance of integrated financial platforms.

In May last year, the bank launched KikobaKidigitali, a mobile-based digital savings and lending platform designed to empower entrepreneurs with tools for group saving, borrowing and investing.

Mr Mihayo said such innovations would continue to shape the bank’s long-term strategy, following a strong return to profitability in the 2023/24.

The lender posted a profit before tax of 44.81bn/–, reversing a 44.42bn/– loss recorded in the previous year.

Profit after tax surged by 170 per cent to 32.62bn/– in 2024, a marked turnaround from the 46.28bn/– loss posted in 2023.

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A key driver of the recovery was robust growth in net interest income, which rose by 19.02 per cent to 120.90bn/–.

Interest income increased by 16.93 per cent to 178.86bn/–, outpacing a 12.79 per cent rise in interest expenses.

The bank also reported balance sheet strength, with total assets growing by 25 per cent to 1.74tri/–. Customer deposits increased by 23.03 per cent to 1.17tri/–, signalling rising public trust and expanded business activity.

Lending also picked up pace, with loans, advances and overdrafts climbing by 24.79 per cent.

The nonperforming loans (NPLs) ratio rose slightly to 3.08 per cent, but remains well within prudent levels for the industry.

Mr Mihayo said the bank will continue focusing on digital inclusion and SME lending to sustain growth and enhance its impact on Tanzania’s economic transformation.