Letshego Bank launched in Tanzania

Letshego Holdings Limited continues to make strides in delivering on its mandate to ensure simple, appropriate and affordable financial solutions across Africa. Tanzania, a key market for the Group, remains central to this, as evidenced by the launch of Letshego Bank, formerly Advans Bank Tanzania, on Wednesday 3rd August 2016 in Dar es Salaam.

Letshego Holdings Limited Group MD Chris Low
Letshego Holdings Limited Group MD Chris Low

The launch of Letshego Bank comes following the 2015 Letshego Group acquisition of ABT and is part of a wider rebrand and transformation by Letshego Group across all markets. Said Mr. Chris Low, Letshego Group Managing Director, “Tonight feels momentous for us, as we celebrate 18 years of Letshego’s African brand presence, 10 years in Tanzania with Faidika as a market leader in credit-only services, and signal our commitment to our diversification agenda through the acquisition of Advans Bank Tanzania. Last month saw the refreshed Faidika brand being released to positive response, and tonight, we will share with you the new identity of Advans Bank Tanzania. Indeed, having served as Group MD of the Letshego Group for almost three years, I can honestly say that I am humbled to be part of this remarkable team. Letshego as an organisation has made a huge impact on the lives of many Tanzanians across the country, as indeed it has on lives across the continent, and continues to do so today. This is not, by any means, the sole effort of the Letshego team. Rather, the Letshego story is the result of concerted effort, and that is very much what tonight is about – celebrating what collective ambition can achieve.”

Mr. Yohane Kaduma, CEO Letshego Bank (Pic by Kitomari Banking & Finance Blog)

Letshego Bank offers a broad base of solutions to the Micro and Small Entrepreneurs (MSEs) sector from savings and loan solutions – including via mobile, agency banking, and deposit-taking – to insurance cover for customers. The bank provides customer access through five branches, three of which are in and around Dar es Salaam, as well as through ATMs and third-party agencies. Providing access anytime, anywhere remains key to Letshego’s mandate. The newly dubbed Letshego Bank has the 3rd largest physical access network through Faidika’s 105 access points as an agent. The business employs over 200 staff who service approximately 23,000 depositors and 4,600 borrowers.  

Letshego already serves over 44,000 Tanzanians through its credit institution, Faidika, that celebrates its 10th anniversary, and today covers over 95% of Government districts, supporting rural and unbanked customers as well as those in urban peripheries. This includes loans for agriculture, solar harvesting, education, health and housing. In Tanzania, over 60% of loans are used productively in these spaces. The scalability of the Letshego Bank and Faidika integrated operations model works to enhance financial inclusion in Tanzania through significant cross-selling synergies. This builds upon a financial inclusion agenda that seeks to improve life through financial access and enhanced financial literacy.

Also, the launch event held saw the bringing to life of Letshego’s narrative, with the brand promise “Let’s improve life’ articulated through the new Group identity and embodied through all activities of the business.  Letshego Bank, and the wider Letshego Group, strives to add further value and improve life for the people of Tanzania. Letshego has a clear commitment to social improvement across Tanzania, reinvesting up to 1% of profits before tax into the society to facilitate sustainable community development, particularly in the health sector.  An example of this can be seen in the soon to be rolled out maternity kits for rural mothers, working to reduce infant mortality rates.  

“Customer experience and strategic partnerships are vital – these are what allow us to build upon our strong base. They guide us in our ambition to become Africa’s leading inclusive finance group,” concluded Yohane Kaduma, CEO of Letshego Bank.