Dar es Salaam. The Bank of Tanzania (BoT) has unveiled plans to launch an automated financial consumer complaint desk in January 2025.
The initiative, in development since 2019, seeks to enhance efficiency, transparency, and accountability in resolving consumer grievances, ensuring that bank users’ rights are upheld promptly.
The system is designed to reduce resolution times while improving the overall customer experience, marking a significant step toward financial inclusion and consumer empowerment.
A Business Analyst in the Directorate of Information Technology, Laura Mandari explained that the system would allow consumers to lodge complaints or appeal unresolved cases directly with BoT.
“This system enables the Financial Consumer Protection Department to respond to claims registered by the public,” Mandari stated. “It also tracks complaints, identifies reasons for delays, and ensures timely resolutions.” Mandari further elaborated on the procedure: that the system, she noted, empowers consumers by providing them with adequate, timely, and efficient redress mechanisms.
“When a consumer encounters an issue, they must first file a complaint with their service provider, who will issue a reference number. If unresolved, the consumer can escalate the matter to BoT using the same reference number.”
The Acting Manager of BoT’s Financial Consumer Protection, Dr Hadija Kishinba, highlighted the significance of the move.
“Starting mid-next month, individuals and companies will be able to lodge complaints and track their progress through a more accessible and user-friendly platform,” she said. Dr Kishinba explained that the current manual system, though functional, needed an upgrade to meet global standards for financial inclusion.
“We initiated the process in 2019 to transition from a manual desk to an automated one, ensuring quality and reliability,” she said, adding, “Globally, financial inclusion is measured by the accessibility of complaint desks, particularly when service providers fail to adhere to consumer protection laws.”
She emphasised that the automated system aligns with BoT’s mission of using technology to enhance service delivery.
“This platform ensures that financial inclusion is achieved in its entirety. It empowers consumers by providing a reliable mechanism to address their grievances when necessary,” she added.
The introduction of the automated financial consumer complaints desk is expected to set a new benchmark for customer service standards in Tanzania’s banking sector
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Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
