In a significant move aimed at revolutionizing banking accessibility and convenience, NMB Bank has forged a strategic partnership with UBX, integrating 17 additional banks into its extensive ATM network. This collaboration, facilitated by the Umoja Switch platform, heralds a new era of banking convenience for Tanzanians.
The initiative, known as ATM interoperability, seeks to address the growing demand for accessible banking services while reducing transaction costs for customers across the country. Through this partnership, NMB Bank and UBX aim to enhance financial inclusivity and streamline banking operations nationwide.
According to the announcement made by NMB Bank, customers of the participating banks, along with NMB Bank customers, will benefit from the following key features.
Enhanced ATM Service Accessibility, whereby with the integration of 17 additional banks into its network, NMB Bank's ATMs will become accessible to customers of all participating banks. This will provide unprecedented convenience and accessibility to banking services, with over 700 NMB ATMs and more than 280 Umoja Switch ATMs available nationwide.
Cost Savings for Customers whereby the collaboration will lead to a significant reduction in transaction costs, with fees for ATM transactions expected to decrease by over 70% for customers of the participating banks and NMB Bank.
Promotion of Financial Inclusion which will encourage the use of ATMs and reduce branch queues, the partnership aims to promote financial inclusion and expand access to banking services, particularly in remote areas. Operational Efficiency for Banks participating banks will benefit from improved operational efficiency, as the collaboration will enable them to reach previously underserved areas through the deployment of ATMs.
Cost-effective solutions whereby the partnership will also result in cost savings for banks, as transactions conducted within the country will no longer require routing through foreign institutions, thereby reducing overhead costs associated with foreign exchange.
The collaboration between NMB Bank and UBX marks a significant milestone in Tanzania's banking sector. Speaking at the launch event, NMB Bank CEO Ruth Zaipuna expressed optimism about the partnership's potential to drive positive change in the banking industry and enhance customer experience.
The event, attended by Hon. Hamad Hassan Chande (MP), Deputy Minister of Finance, received commendation for its potential to transform the banking landscape in Tanzania. With representatives from the 17 banks under the Umoja Switch network in attendance, the launch event highlighted the collective commitment to promoting financial inclusivity and accessibility across the country.
The participating banks under the Umoja Switch network include Access Microfinance Bank, Akiba Commercial Bank, Azania Bank, Bank of Africa, DCB Commercial Bank, Letshego Bank, Maendeleo Bank, and Mkombozi Commercial Bank, among others.
As the collaboration takes effect, Tanzanians can look forward to a more accessible, cost-effective, and streamlined banking experience, driving economic growth and financial empowerment across the nation.