Question 1

What is Letshego Faidika Bank?

Accepted Answer

Letshego Faidika Bank is a commercial bank in Tanzania licensed and regulated by the Bank of Tanzania. The bank is a wholly-owned subsidiary of Letshego Holdings Limited, a pan-African inclusive finance organization headquartered in Gaborone, Botswana.

The bank was formed in July 2023 through the merger of two separate Letshego entities operating in Tanzania: Letshego Tanzania Limited (trading as "Faidika") and Letshego Bank Tanzania. This consolidation created a unified commercial banking operation focused on delivering inclusive financial solutions to underserved populations across Tanzania.

Question 2

When was Letshego Faidika Bank founded?

Accepted Answer

The origins of Letshego Faidika Bank trace back to 2006, when Faidika commenced operations in Tanzania as a non-bank financial institution and subsidiary of Letshego Holdings Limited. Faidika operated as a microfinance provider specializing in payroll lending, predominantly offering unsecured consumer loans using the deduction at source model.

The other component of the merged entity, Letshego Bank Tanzania, was originally established in 2011 as Advans Bank Tanzania, a joint venture between Advans SA (Luxembourg) and the Netherlands Development Finance Company. In November 2015, Letshego Holdings Limited acquired a 75 percent stake in the bank, eventually increasing its ownership to approximately 87 percent.

On July 4, 2023, the two entities officially merged to form Letshego Faidika Bank Limited, creating a more comprehensive banking operation under unified branding. The merger was approved by the Bank of Tanzania following regulatory submissions and was designed to maximize operational efficiencies and expand the product offering for Tanzanian customers.

Question 3

Where is Letshego Faidika Bank headquartered?

Accepted Answer

Letshego Faidika Bank is headquartered in Dar es Salaam, Tanzania's largest city and commercial capital. The head office is located at Plot No. 23 Ursino Estate, 3rd Floor, Vodacom Towers, Paloma Park, Bagamoyo Road.

Prior to the merger, the legacy Letshego Bank Tanzania maintained its main branch at 93 Morogoro Road, Manzese Darajani, Dar es Salaam, while Faidika operated from multiple branches and satellite offices across the country.

Question 4

Where does Letshego Faidika Bank operate?

Accepted Answer

Letshego Faidika Bank operates throughout Tanzania with an extensive distribution network designed to reach both urban and rural populations. The bank maintains 16 branches and 4 sub-branches across major Tanzanian cities, complemented by approximately 86 satellite offices and over 200 third-party agencies.

Major operational centers include Dar es Salaam (with multiple locations including Manzese, Kariakoo, and Temeke), Mwanza, and Mbeya. The bank's agency model, which utilizes small vendors as banking agents, significantly expands its reach beyond traditional brick-and-mortar locations, outnumbering formal branches by more than twenty-to-one.

This widespread network enables the bank to provide financial inclusion to Tanzanians in remote areas who have historically had limited access to traditional banking services.

Question 5

What services does Letshego Faidika Bank offer?

Accepted Answer

Letshego Faidika Bank offers a comprehensive range of inclusive financial products and services across five key value streams:

Lending: Unsecured consumer loans, microfinance loans for micro and small entrepreneurs (MSEs), affordable housing loans, education financing, and health sector financing. The bank uses the deduction at source model for payroll lending.

Savings: Deposit accounts and savings products, available through the bank's Tier II deposit-taking license.

Insurance: Bancassurance products including life insurance, health insurance, general insurance products (motor, property, cargo), and insurance premium financing. In October 2021, Faidika became the first microfinance institution in Tanzania to launch comprehensive bancassurance services through partnerships with multiple insurers including Sanlam, Britam, Alliance General, First Assurance, and Jubilee Life.

Payments: Transaction services including Western Union money transfers, ATM card services, E-Money, and bank transfers via the Tanzania Interbank Settlement System (TISS).

Digital Services: Multiple digital channels including LetsGo mobile app, USSD mobile banking, WhatsApp banking, online banking platforms, and agency banking through third-party partners. The bank's digital infrastructure enables customers to access services anytime, anywhere.

Question 6

What makes Letshego Faidika Bank unique?

Accepted Answer

Several distinctive features set Letshego Faidika Bank apart in Tanzania's banking sector:

First-Mover in Bancassurance: The bank became the first microfinance institution in Tanzania to launch a full suite of bancassurance products in 2021, partnering with multiple insurance companies to provide integrated financial and insurance solutions under one roof.

Extensive Agency Network: The bank pioneered a highly successful agency banking model in Tanzania, with over 200 third-party agents (primarily small vendors) operating as banking touchpoints. This creates one of the most extensive retail distribution networks in the country, reaching customers in the remotest areas.

Financial Inclusion Focus: The bank's explicit mission centers on providing suitable and sustainable financial services to micro, small, and medium-sized entrepreneurs, and to low and medium-income employees who have historically been underserved by traditional banking institutions.

Pan-African Backing: As part of Letshego Holdings Limited, the bank benefits from the expertise and resources of one of Africa's largest indigenous inclusive finance organizations, which operates across 11 sub-Saharan African countries and serves over 6.6 million consumers.

Deduction at Source Model: The bank's payroll lending approach, which deducts loan payments directly from borrowers' salaries, provides convenience for customers while reducing credit risk.

Question 7

What type of financial institution is Letshego Faidika Bank?

Accepted Answer

Letshego Faidika Bank is classified as a Commercial Bank in Tanzania, specifically licensed and regulated by the Bank of Tanzania under commercial banking regulations. However, the bank operates with a strong microfinance banking orientation, positioning itself within the inclusive finance sector.

The bank combines characteristics of both commercial and microfinance banking. While it holds a commercial banking license that allows it to accept deposits and provide a full range of banking services, its strategic focus remains on financial inclusion and serving underserved market segments.

This dual nature reflects the bank's evolution: it merged a traditional non-bank microfinance institution (Faidika) with a commercial microfinance bank (Letshego Bank Tanzania) to create a hybrid model that can offer comprehensive banking services while maintaining its core mission of inclusive finance. The bank also holds a Tier II deposit-taking license and a bancassurance license, making it one of the most diversified financial service providers in Tanzania's inclusive finance sector.

Letshego Faidika Bank

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About Letshego Faidika Bank in Tanzania