EXPERT SAYS SAVING CULTURE NOW RISING

A banking expert has claimed that stiff competition in the banking sector has led to an increased culture of saving among Tanzanians as compared with the past period of state monopoly over financial services.

Speaking to this paper in an interview, Standard Chartered bank head of consumer banking, Ralph Watungwa said recently many Tanzanians have now realized the importance of saving their surplus wealth as cash in their bank accounts.

`Today we have more than 28 banks which offering various products while fifteen years ago we hadn?t more than ten banks`, he said.

Apart from banks, he said, the number of financial institutions dealing with small and medium enterprises (SMEs) has also increased in recent years.

Due to stiff competition, banks and other financial institutions have been struggling on ways to lure customers of various categories including small savers, a thing that has increased the saving habit among customers.

Some of the strategies being undertaken by financial institutions include such things as the introduction of raffles, reduction of interest rates on small loans, inventing more deposit brands as well as increased range of loan categories.

Standard Chartered for instance, mid this year launched a deposit and win raffle of which Watungwa claims has sensitized customers who have opened more accounts as well as pumping more deposits.

`As we are heading to our last month of the Deposit and Win Raffle this month, we have witnessed increasing number of new accounts getting opened and more deposits,` he said.

`Through this campaign, our customers not only benefit from attractive interest rates on their savings but they also stand chances to win themselves exciting prizes`, Watungwa said.

Two individual account holders and two SME customers are lined up to win the prizes.

SOURCE: Guardian