Question 1

What is FINCA Tanzania?

Accepted Answer

FINCA Tanzania (officially FINCA Microfinance Bank Limited Tanzania) is a microfinance bank specializing in financial inclusion for low-income individuals and small businesses in Tanzania. As part of the global FINCA Impact Finance network, it serves over a million customers with microfinance products designed to alleviate poverty and support entrepreneurship.

The bank focuses on serving low-income entrepreneurs, small business owners, and rural communities who lack access to traditional banking services. FINCA Tanzania operates as a regulated microfinance bank under the supervision of the Bank of Tanzania.

Question 2

When was FINCA Tanzania founded?

Accepted Answer

FINCA Tanzania was established in 1998 when it formed its first Village Bank in Mwanza, bringing the pioneering group lending model to Tanzania. The institution began as an unregulated microfinance organization under the Foundation for International Community Assistance (FINCA International), founded globally in 1984 by John Hatch.

In 2013, FINCA Tanzania achieved a historic milestone by becoming the first microfinance institution in Tanzania to be licensed as a regulated entity by the Bank of Tanzania. This transformation allowed the institution to accept deposits from the public and offer full banking services. By 2015, it had officially become FINCA Microfinance Bank Limited, marking the 50th licensed bank in the country.

Question 3

Where is FINCA Tanzania headquartered?

Accepted Answer

FINCA Tanzania is headquartered in Dar es Salaam, Tanzania. The registered office is located at Plot No. 34/1, 8th Floor, TAN House, Victoria Area, Bagamoyo Road.

Question 4

Where does FINCA Tanzania operate?

Accepted Answer

FINCA Tanzania operates across multiple regions throughout Tanzania, with a network of branches serving both urban and rural communities. The bank has established a presence in key regions including:

Coastal Region: Temeke, Airport, Victoria, and Tegeta branches serve the Dar es Salaam area and surrounding coastal communities.

Lake Region: Mwanza (where the first Village Bank was formed), Mara, Tarime, and Bunda provide services to communities around Lake Victoria.

Northern Region: Branches in Tanga, Arusha, and Moshi serve northern Tanzania's commercial centers.

Central Region: Morogoro, Ifakara, Mpwapwa, Dodoma, and Kibaya branches reach inland communities.

Southern Region: Iringa, Njombe, Mbeya, and Songea branches extend services to southern Tanzania.

Western Region: Shinyanga, Kahama, Geita, Bukoba, and Tabora provide access to western regions.

The bank maintains over 150 FINCA Express agent banking terminals across the country, significantly expanding access beyond traditional branch locations.

Question 5

What services does FINCA Tanzania offer?

Accepted Answer

FINCA Tanzania offers a comprehensive range of microfinance banking services tailored to low-income customers and small businesses:

Credit Products: Group loans using the Village Banking solidarity model (groups of 30-50 members), individual loans, agricultural loans, Small and Medium Enterprise (SME) loans, business capital loans, and instant loans. The bank processes loan applications in as little as five business days.

Savings Products: Individual savings accounts that can be opened in as little as five minutes using Digital Field Automation technology, compulsory savings for loan collateral, and voluntary deposit accounts.

Money Transfer Services: Domestic money transfer services and payroll solutions for businesses.

Insurance Products: Micro-insurance through partnerships with MicroEnsure Tanzania.

Digital Banking Services: FINCA Mobile allows customers to access accounts, make transactions, and pay bills by dialing 15019#. Haloyako, a mobile savings and credit platform in partnership with HALOTEL, enables Halopesa subscribers to save as little as 100 TZS at no cost. Agent Banking (FINCA Express) provides over 150 terminals across Tanzania equipped with biometric technology for secure transactions. Digital Field Automation (DFA) enables account opening and loan application processing remotely using tablets.

Question 6

What makes FINCA Tanzania unique?

Accepted Answer

FINCA Tanzania distinguished itself as the first microfinance institution in Tanzania to receive a banking license from the Bank of Tanzania in 2013, pioneering the transformation from unregulated to regulated microfinance banking in the country.

The bank's Village Banking model uses group lending methodology where members form solidarity groups of 5-7 individuals who guarantee each other's loans, making credit accessible to those without traditional collateral. This approach has proven particularly effective in empowering women entrepreneurs and rural communities.

Technology leadership sets FINCA apart with innovations like Digital Field Automation (DFA), which allows customers to open savings accounts in five minutes using tablets without visiting a branch. The extensive agent banking network of over 150 FINCA Express terminals brings banking services to remote areas at low cost.

FINCA Tanzania's social mission focuses explicitly on poverty alleviation and financial inclusion for the lowest-income segments, targeting individuals and borrowers below TZS 40 million. The bank maintains a "double bottom line" approach, balancing sustainability with social impact.

The institution brought over 73,000 clients, mainly from rural areas, into the formal banking sector when it first received its license, demonstrating its commitment to reaching underserved populations.

Question 7

What type of financial institution is FINCA Tanzania?

Accepted Answer

FINCA Tanzania is a Microfinance Bank licensed and regulated under the Banking and Financial Institutions (Microfinance Activities) Regulation, 2014 by the Bank of Tanzania.

As a microfinance bank, it operates as a specialized financial institution designed to serve low-income individuals, micro-entrepreneurs, and small businesses who typically lack access to conventional commercial banking services. Unlike traditional commercial banks, microfinance banks focus on smaller loan amounts, group lending mechanisms, and financial inclusion objectives.

FINCA Tanzania's classification as a microfinance bank allows it to accept deposits from the public while maintaining its specialized focus on microfinance activities, including micro-credit, micro-savings, and micro-insurance products tailored to the needs of economically disadvantaged populations.

FINCA Tanzania

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About FINCA Tanzania in Tanzania