Leading Commercial Banks in Tanzania and Critical Banking Sector Insight

Leading Commercial Banks in Tanzania and Critical Banking Sector Insight

Top 10 Banks in Tanzania 2021 and 2022

Commercial banks in Tanzania contribute to the country’s status as a major global middle power in the 21st century. The vast Tanzanian banking system is a significant factor in the country’s incredible success. 

The latest IMF data shows that Tanzania has the world’s largest network of commercial bank branches. 

The commercial list of banks in Tanzania are widely distributed around the country, making it possible for every citizen to easily access financial services and aiding in Tanzania’s economic growth. 

What Do Commercial Banks Entail?

BoT, or the Central Bank of Tanzania, controls how commercial banks in the country do essential banking tasks like accepting deposits and extending credit. 

Commercial banks in Tanzania exist, first and foremost, to make money. 

They work with individuals and corporations, the latter of which can choose from different types of bank loan interest rates in Tanzania.

Profit for Tanzania’s leading Commercial Banks comes primarily from the spread between the bank interest rates in Tanzania charged and given to their customers. 

The List of Commercial Banks in Tanzania

There are essentially three categories of commercial banks in Tanzania. 

  1. The Industry of Public Sector Banking in Tanzania

Banks in which the federal government holds a majority share (at least 51%) are included here. The union government also controls the business. The largest public sector banks in Tanzania are CRDB, the State Bank of Tanzania, and the Tanzania Postal Bank. 

  1. The Private Sector Banking Industry

Companies and individuals own the vast majority of shares in these institutions.  

  1. The International Banking Industry

These banks’ main offices are located in other countries. Financial services are handled through wholly-owned subsidiaries. Some of Tanzania’s most well-known foreign banks include Absa Bank, Barclays Bank, and Standard Chartered Bank. 

How Many Commercial Banks in Tanzania?

There were 59 commercial banks operating in Tanzania. However, please note that this information might have changed since then due to the dynamic nature of the banking industry. It’s always a good idea to consult the latest official sources or websites of the Central Bank of Tanzania or other relevant financial authorities for the most up-to-date and accurate information on the number of banks in Tanzania.

An Overview of Commercial 10 Top Banks in Tanzania

You may wonder, with the plethora of Tanzanian commercial banks, which ones are the finest. For your reference and knowledge, we have compiled a list of Tanzania’s top 10 Commercial Banks. 

A Comprehensive Analysis of Top 10 Banks in Tanzania Finds:

  1. CRDB Bank Plc to Be the Best Overall:

Having opened its doors in 1991, CRDB Bank has become a leading private sector commercial bank in Tanzania. There are currently 2,237 point-of-sale locations and 14,761 bank agents throughout Tanzania’s major cities, and the Bank’s 268 branches and 560 ATMs. In Burundi, CRDB Bank has more than 3.3 million clientele. 

CRDB Bank Tanzania
CRDB Bank Tanzania

It has over 3,400 employees, total market assets of about TZS 6.6 Trillion, and total capital of TZS 873 Billion, according to the 2019 annual report. CRDB Insurance Broker Limited, CRDB Bank Burundi (with headquarters in Tanzania), and CRDB Microfinance Services Limited are the three affiliates of the Bank. 

CRDB Bank Plc has one of Tanzania’s most extensive branches and ATM networks. It provides a wide variety of financial services, including traditional banking, corporate banking, insurance, wealth management, foreign exchange, current and savings accounts, credit, mortgages and debit cards, online banking, and transfers. 

If you are thinking of a best bank in Tanzania, CRDB is probably one as it has weathered through all kinds of financial storms over the years basing on economic changes in the country, and still been one of the top performing largest banks in Tanzania.

  1. NMB Bank is Another Best Commercial Bank Available:

As far as Tanzanian small and medium-sized enterprises (SMEs) are concerned, NMB Bank, established in 1994, is a famous private sector Commercial Bank. NMB Bank currently has over 3.5 million customers, more than 224 NMB bank branches in Tanzania, and 794 ATMs in key Tanzanian cities. 

There are 5,980 agents spread out around the country who work for NMB Bank. More than 3,450 people work at NMB Bank. As of 2019, the Bank’s total capital was TZS. 972 Billion, and its total market assets were TZS. 6.5 Trillion.  

The Bank has won the coveted “Best Bank in Tanzania 2018” award from the Euromoney Awards for Excellence for the seventh year. The Bank is also pleased to announce that, for the fourth year running, it has been awarded the “Best Presented Financial Statements 2018” distinction by the National Board of Accountants and Auditors (NBAA). 

  1. Bank NBC Is Another Well Ranked Commercial Banks In Tanzania:

Founded in 1967, NBC Bank has grown to become the third largest private Bank in Tanzania. It operates around 51 stores and 230 automated teller machines across Tanzania. The Bank employs over 1,200 people, has a market valuation of over TZS 1.9 trillion, and has assets above $trillion. 

  1. Tanzania’s KCB Bank:

KCB Bank Tanzania Limited was established in April 1997. The KCB Bank Group, of which KCB Bank Tanzania is a part, is also present in Uganda, Kenya, South Sudan, Burundi, and Rwanda. 

KCB Bank has 14 facilities in Tanzania, 144 Agents, 15 full-service ATMs, and 289 Point-of-Sale Merchants. In Tanzania, 287 employees are on staff at the Bank. 

The KCB Core Banking System in Tanzania is the most advanced single-branch Bank (T24). With this state-of-the-art technology, all KCB operations can be conducted on a unified IT platform, making it possible for customers to conduct banking transactions at any KCB branch as if at home. 

KCB Bank in Tanzania is the first East African Bank to list its stock on more than one stock exchange, having done so on Mark’s Stock Exchange, Nairobi’s Securities Exchange, the Dar’s Stock Exchange, Rwanda, and Uganda Stock Exchange. 

  1. The International ABSA

The parent company of Absa Bank in Tanzania, Absa Group Limited, strives to be Africa’s most admired financial institution. 

One of Africa’s largest diversified financial services organizations, Absa Group Limited is listed on South Africa’s Johannesburg Stock Exchange (JSE) and employs over 42,000 people across a dozen countries. 

There is no other private bank in Tanzania that matches its size. Banking, insurance, wealth management, foreign exchange, checking accounts and savings, mortgages, debit and credit cards, wire transfers, and internet banking are just a few services offered to individuals and businesses. 

The Bank operates more than 950 point-of-sale locations across Tanzania and 264 automated teller machine locations. About 1,662 people work for the company in Tanzania. 

ABSA is one of the international banks in Tanzania that is doing well for a very long time so far.

  1. The Stanbic Bank

This Commercial Stanbic Bank in Tanzania focuses on serving businesses in the private and public sectors, embassies, and international organizations. 

Stanbic is another international bank in Tanzania with a large presence and popularity.

On 1995 of May, the Group of Standard Bank in South Africa obtained Tanzania’s Meridien Biao Bank Limited, giving rise to Tanzania’s Stanbic Bank, a part of the Standard Bank Group. 

Stanbic Bank Tanzania
Stanbic Bank Tanzania

The Standard Bank Group is an African-founded international financial institution. This financial institution dominates the South African market and has a significant presence in twenty other African nations; the Standard Bank Group is an international financial institution focusing on seven emerging areas outside of Africa. They can fulfill the ever-increasing global needs of business thanks to their affiliation with Africa’s leading Bank and the global experience and local presence offered to clients. 

The Bank offers a comprehensive range of corporate and investment banking services, such as access to global markets, project and structured financing, corporate finance, equity trading, global custody, and a plethora of transactional and electronic banking choices. 

  1. The Exim Bank 

Exim Bank is the first global Bank in Tanzania and a significant provider of financial services in four other countries. Exim Bank has grown from its humble beginnings in 1997 at its Dar es Salaam’s Samora Branch to become a significant player in Tanzania and the rest of the region

Branch offices can be found in the Tanzanian cities of Zanzibar, Dar es Salaam, Morogoro, Tanga, Kilimanjaro, Manyara, Arusha, Mwanza, Kigoma, Shinyanga, Iringa, Mtwara, and Mbeya, as well as the Moheli, Anjouan, and Moroni Islands in the Union of Comoros, the Republic of Djibouti, and the Ugandan city.

Exim Bank Tanzania
Exim Bank Tanzania

The Bank has achieved tremendous headway thanks to the introduction of state-of-the-art technology and customer-centric solutions. They were the first Bank in Comoros to offer credit cards, including Visa Platinum cards, International Debit MasterCards, Visa credit cards, and TANAPA debit cards. Moreover, they were the first to implement a mobile solution for ATMs and a lending program for women in Tanzania. 

  1. The Diamond Trust Bank

DTB has been recognized as a leading regional bank by the (NSE) Nairobi Securities Exchange. DTB-a division of the Aga Khan Development Network (AKDN)-has worked to improve lives in East Africa for almost seventy years. 

DTB’s rapid expansion over the past few years has been attributed to its commitment to the small and medium enterprise (SME) market and its efforts to improve customer convenience by opening new branches. 

DTB has approximately 130 branches in Tanzania, Kenya, Burundi, and Uganda; some are digital branches open 24 hours a day, 7 days a week. They are dedicated to helping their customers achieve financial independence and personal growth. The brand promise of the Bank, “Achieve More,” is brought to life by a talented and diverse staff who are fully invested in the Bank’s mission. 

  1. The DCB Bank Plc 

This Commercial Bank, founded in 2001 with its headquarters in Dar es Salaam, is a publicly-traded company. Dar es Salaam Commercial Bank (DCB) is Tanzania’s largest Bank, serving millions of customers with retail and wholesale banking, credit and debit cards, mortgage and vehicle loans, and more. DCB now operates over 15 locations and 250 automated teller machines (ATMs) and employs over 200 people throughout Tanzania.  

The Bank offers a wide variety of loans, including mortgages, personal loans, loans secured by real estate and securities, student loans, loans for the purchase of cars (both new and used), loans for motorcycles, loans for gold, and credit cards, loans secured by vehicles, loans for expanding businesses, and loans for credit card debt consolidation, among others. The Bank offers a variety of payment options, including credit, debit, millennium, business credit, and prepaid cards. 

You can open various accounts at this Bank, including savings, salary, current, rural, sukanya samriddhi, demat, and ppf accounts. The deposit options provided by the Bank include the Recurring Deposit, the Fixed Deposit, the My Passion Fund, and the Non-Withdrawable Deposit. 

  1. The Standard Chartered Bank in Tanzania

Standard Chartered plc employs over 200 people across its seven offices and utilizes more than eight ATMs to provide its financial services to customers worldwide. It serves customers in over six different markets. It offers a full spectrum of retail and wholesale banking products and services, including business and personal loans, deposits, wealth management, auto financing, mortgages, M&A advisory services, online banking, international wire transfers, and more. 

Other Important Information Related to Commercial Banks in Tanzania

Can a foreigner open a bank account in Tanzania?

Yes, foreigners can generally open bank accounts in Tanzania. However, the specific requirements and procedures may vary depending on the bank and the type of account you wish to open. Here are some general guidelines:

1. Choose a Bank: Research different banks in Tanzania to find one that suits your needs and offers services for foreigners. Some popular banks in Tanzania include CRDB Bank, National Microfinance Bank (NMB), and Stanbic Bank.

2. Gather Required Documents: Prepare the necessary documentation to open a bank account. Typical requirements may include:

a. Valid Passport: You’ll need to provide a valid passport as proof of your identity and nationality.
b. Resident Permit: If you are residing in Tanzania, you may need to provide a valid resident permit or work permit.
c. Proof of Address: Banks may require proof of your residential address in Tanzania. This could be a utility bill, rental agreement, or a letter from your employer.
d. Reference Letters: Some banks may require reference letters from your current bank or personal references.

3. Visit the Bank: Once you have the required documents, visit the bank branch where you wish to open the account. Speak to a customer service representative or a bank officer to guide you through the account opening process.

4. Complete Application Forms: Fill out the necessary application forms provided by the bank. These forms will ask for your personal information, contact details, and account preferences.

5. Deposit Requirement: Some banks may require an initial deposit to open the account. Ensure you have the necessary funds available to meet the bank’s minimum deposit requirement.

6. Account Opening Fee: There may be a one-time account opening fee charged by the bank. Inquire about this fee beforehand to be prepared.

7. Follow Bank Procedures: Cooperate with the bank in any additional procedures they require, such as signing account agreements, providing biometric information, or attending an interview.

It’s worth noting that specific requirements and procedures can vary among banks and may change over time. It is advisable to contact the bank directly or visit their website for the most up-to-date information on opening a bank account as a foreigner in Tanzania.

How can you open bank account online in Tanzania?

To open a bank account online in Tanzania, you will need to follow these general steps:

1. Choose a bank: Research and select a bank in Tanzania that offers online account opening services. Some popular banks in Tanzania include CRDB Bank, National Microfinance Bank (NMB), Stanbic Bank, and Barclays Bank.

2. Visit the bank’s website: Once you have chosen a bank, visit their official website. Look for the option to open an account or a similar link that leads to the online account opening process.

3. Gather required documents: Prepare the necessary documents for the account opening process. The specific requirements may vary slightly between banks, but typically, you will need the following:

– Valid identification document (e.g., passport, national ID, or driver’s license)
– Proof of address (e.g., utility bill or rental agreement)
– Passport-size photographs
– Taxpayer Identification Number (TIN) if applicable

4. Complete the online application: Fill out the online application form provided by the bank. You will be asked to provide personal information, contact details, and other required details. Make sure to double-check the accuracy of the information you provide.

5. Upload the necessary documents: Scan or take clear photos of your identification documents, proof of address, and any other documents required by the bank. Upload these documents through the bank’s online application portal as instructed.

6. Submit the application: Review all the information you have provided and submit the online application. Take note of any reference or application numbers provided for future reference.

7. Verification process: After submitting your application, the bank will typically review your information and documents. They may contact you for additional verification or clarification if needed. This step ensures the bank complies with regulatory requirements.

8. Account approval and funding: Once your application is approved, the bank will provide you with details about your new account. This includes the account number, online banking access details, and instructions on how to fund the account.

It’s important to note that the specific process may vary between banks, and some banks may require you to visit a branch to complete the account opening process. Therefore, it’s recommended to check the official website of the bank you choose for detailed instructions on how to open an account online in Tanzania.

Banking jobs in Tanzania

In Tanzania, the banking and finance sector offers a range of job opportunities. Some of the common available banking and finance jobs in Tanzania include:

1. Bank Teller: Responsible for cash handling, customer service, and processing various banking transactions at the branch level.

2. Loan Officer: Assessing loan applications, conducting credit evaluations, and making decisions on loan approvals based on established criteria.

3. Financial Analyst: Analyzing financial data, preparing reports, and providing recommendations to assist in decision-making processes.

4. Relationship Manager: Building and maintaining relationships with clients, understanding their financial needs, and offering appropriate banking and investment solutions.

5. Risk Manager: Identifying and assessing potential risks within the banking and financial industry, implementing risk mitigation strategies, and ensuring compliance with regulations.

6. Credit Analyst: Evaluating creditworthiness of borrowers, analyzing financial statements, and preparing credit proposals for loan approvals.

7. Investment Analyst: Conducting research on investment opportunities, analyzing financial markets, and providing recommendations on investment strategies.

8. Branch Manager: Overseeing the operations of a bank branch, managing staff, ensuring customer satisfaction, and achieving financial targets.

9. Treasury Manager: Managing the organization’s cash flow, optimizing liquidity, and executing financial transactions in the money markets.

10. Compliance Officer: Ensuring adherence to regulatory requirements, developing and implementing compliance policies and procedures, and conducting internal audits.

These are just a few examples of the many banking and finance jobs available in Tanzania. It’s important to note that specific job titles and responsibilities may vary across different banks and financial institutions. Job vacancies can be found through online job portals, recruitment agencies, or by directly contacting banks and financial institutions in Tanzania.

Banking regulatory agencies in Tanzania

In Tanzania, the main banking regulatory agency is the Bank of Tanzania (BOT). The BOT is the central bank of Tanzania and has the authority to regulate and supervise banks and financial institutions in the country. It is responsible for ensuring the stability and soundness of the banking system and promoting monetary stability.

The Bank of Tanzania carries out its regulatory functions through various departments and divisions, including the Banking Supervision Department, Financial Markets Department, and Licensing and Supervision of Financial Institutions Department. These divisions oversee different aspects of the banking and financial sector, including licensing, supervision, prudential regulations, and enforcement of banking laws and regulations.

Additionally, the Tanzania Insurance Regulatory Authority (TIRA) regulates and supervises the insurance industry in Tanzania. While not specifically focused on banking, it plays a significant role in overseeing insurance companies’ operations and ensuring consumer protection in the insurance sector.

It’s worth noting that regulations and regulatory bodies may evolve over time, so it’s recommended to verify the current state of banking regulatory agencies in Tanzania with up-to-date sources or by directly contacting the relevant authorities.

Mobile banking in Tanzania

Mobile banking in Tanzania has experienced significant growth and adoption in recent years, particularly with the rise of digital financial services and the widespread use of mobile phones across the country. Here are some key points about mobile banking in Tanzania:

1. Mobile Network Operators (MNOs): In Tanzania, MNOs play a crucial role in offering mobile banking services. The two major MNOs in the country are Vodacom Tanzania and Tigo Tanzania, both of which provide mobile banking services through their respective platforms.

2. USSD-based Services: Unstructured Supplementary Service Data (USSD) is a widely used technology for mobile banking in Tanzania. It allows users to access banking services by dialing specific codes on their mobile phones. Using USSD, customers can perform various transactions, including checking account balances, transferring funds, paying bills, and purchasing airtime.

3. Mobile Money Providers: In addition to traditional banks, there are mobile money providers operating in Tanzania. These providers, such as Vodacom’s M-Pesa and Tigo’s Tigo Pesa, enable users to open mobile money accounts and conduct financial transactions using their mobile phones. Mobile money has become an essential tool for financial inclusion in Tanzania, particularly in rural areas where traditional banking services are limited.

4. Financial Inclusion: Mobile banking has played a significant role in improving financial inclusion in Tanzania. It has provided access to basic financial services for individuals who were previously unbanked or had limited access to formal banking services. Mobile banking allows users to save, send and receive money, and access other financial products and services conveniently.

5. Partnerships and Integration: Mobile banking services in Tanzania often involve partnerships between MNOs, banks, and other financial institutions. These collaborations allow for the integration of mobile banking with existing banking infrastructure, facilitating seamless transactions between mobile accounts and traditional bank accounts.

6. Security and Regulation: The Bank of Tanzania (BOT) regulates mobile banking services in the country to ensure the security of transactions and protect consumers’ interests. Mobile banking platforms implement various security measures, such as two-factor authentication, encryption, and transaction limits, to safeguard user accounts and data.

7. Service Availability: Mobile banking services are widely available across Tanzania, even in remote areas. Users can access these services through basic feature phones, smartphones, or even offline-capable devices. Mobile banking agents are also present in many locations, enabling users to deposit or withdraw cash from their mobile accounts.

Mobile banking has revolutionized the financial landscape in Tanzania, offering convenient, secure, and accessible services to a wide range of users. Its widespread adoption has contributed to economic growth, increased financial inclusion, and the digitization of financial transactions in the country.

Other Popular Banks in Tanzania

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