Mchumi Consulting

  Managing a loan portfolio effectively is crucial to minimizing default risks, especially in the dynamic financial landscape of Tanzania. With years of hands-on experience in the banking sector, I’ve come to understand that financial institutions play a significant role in driving economic growth.  Adopting strategies that ensure loan portfolios remain healthy and sustainable is essential. Here are the key steps to achieving this goal: Step 1: Conduct Thorough Credit Assessments The first step in managing a loan portfolio is conducting thorough credit assessments. This involves evaluating the creditworthiness of potential borrowers by analyzing their financial history, income stability, and repayment capacity.  Using detailed credit scoring models helps in making informed lending decisions and reducing the likelihood of defaults. Example: Suppose a small business owner in Dar es Salaam applies for a loan. By assessing their financial statements, business plans, and credi...

As someone with deep experience in the banking sector, I have observed the remarkable impact of digital innovation on Tanzania's economy.  The integration of technology into financial transactions has transformed how Tanzanians interact with money, spurring economic growth and enhancing financial inclusion. The Digital Banking Boom The advent of digital banking has been a game-changer for Tanzania. With the rise of mobile money services, millions of Tanzanians now have access to financial services that were previously out of reach.  M-Pesa , launched by Vodacom in 2008, set the stage by allowing users to conduct transactions via mobile phones, revolutionizing the financial landscape.  Today, mobile money services are a primary means of financial transactions, especially in rural areas. Selcom Pesa: Leading the Charge Among the frontrunners in Tanzania's digital banking revolution is Selcom Pesa  introduced by Selcom Microfinance Bank, Selcom Pesa offers an array of f...