Tanzania's leading bank implements core infrastructure upgrade to pursue regional expansion goals
CRDB Bank, the largest bank in Tanzania by assets, has recently migrated its core banking system from Fusion Banking Essence to Temenos T24. This move is crucial for the bank's expansion plans, as it joins a list of African lenders running on Temenos T24, including Kenya's KCB Group and Stanbic Bank.
The migration occurred during the first weekend of September and was necessary for CRDB Bank to keep pace with regional competitors and prepare for expansion outside East Africa. The glitches experienced during the 72-hour migration exercise were attributed to large data transfers between the systems, with customers reporting discrepancies in balances. However, the bank's CEO, Abdulmajid Nsekela, reassured that these issues were quickly addressed.
With the new system, CRDB Bank now supports transactions in multiple languages and currencies, making it well-equipped to compete for corporate clients and cross-border business. The bank's expansion to Dubai aims to target diaspora remittances and trade finance between the Gulf and East Africa. In Dubai, CRDB Bank expects to serve both diaspora and cross-border clients.
CRDB Bank's chairman, Abdulmajid M. Nsekela, who is also the Managing Director or CEO of CRDB Bank, has been focusing on expanding credit mainly to small and medium-sized enterprises (SMEs), particularly supporting women and youth entrepreneurs in rural areas, as part of its strategic growth and inclusive finance initiatives. While specific expansion plans for 2021 are not explicitly detailed, this focus on SMEs and rural development indicates a commitment to inclusive finance.
East African lenders, including CRDB Bank, are modernizing their technology backbones. This modernization is not only a response to regional competition but also part of wider financial sector reforms pushed by the Bank of Tanzania. KCB, Equity Group, DTB, and NCBA Group already run multi-market operations on Temenos T24 or similar systems.
As regional banks integrate operations and compete for cross-border clients, systems like Temenos T24 become increasingly vital. This trend is evident in the migration of CRDB Bank, which is now well-positioned to take on new opportunities in the ever-evolving African financial landscape.
On a separate note, Africa's top founders, creatives, and tech leaders will gather in Lagos on October 15-16 for the Moonshot event by a certain website. This event promises to be a significant platform for discussions and collaborations in the African tech industry.
Read also:
- Federal petition from CEI seeking federal intervention against state climate disclosure laws, alleging these laws negatively impact interstate commerce and surpass constitutional boundaries.
- Duty on cotton imported into India remains unchanged, as U.S. tariffs escalate to their most severe levels yet
- Steak 'n Shake CEO's supposed poor leadership criticism sparks retaliation from Cracker Barrel, accusing him of self-interest
- Germans face billion-dollar infrastructure crisis on federal highways, as construction projects hang in the balance
