VP urges banks to adopt AI
ARUSHA: VICE-PRESIDENT Dr Philip Mpango has called on Tanzania’s financial sector to embrace artificial intelligence (AI) responsibly, urging stakeholders to strike a balance between innovation and cybersecurity to protect the industry from rising digital threats. Speaking yesterday during the inauguration of the CRDB Bank shareholders’ seminar ahead of today’s Annual General Meeting (AGM), Dr Mpango …
ARUSHA: VICE-PRESIDENT Dr Philip Mpango has called on Tanzania’s financial sector to embrace artificial intelligence (AI) responsibly, urging stakeholders to strike a balance between innovation and cybersecurity to protect the industry from rising digital threats.
Speaking yesterday during the inauguration of the CRDB Bank shareholders’ seminar ahead of today’s Annual General Meeting (AGM), Dr Mpango outlined five key recommendations for the sector, saying AI is transformative potential in enhancing efficiency, reducing operational costs and improving financial access, particularly in underserved rural communities.
“Investment in technology, specifically AI will not only enhance efficiency, productivity and reduce costs but also bring banking services closer to the people,” said Dr Mpango.
However, he warned that as the sector increases its reliance on digital solutions, there is a critical need to strengthen cybersecurity frameworks to guard against cyber-attacks, data breaches and digital fraud.
“From now on, banks should start investing in AI as a way to protect their capital and reach more customers,” explained Dr Mpango.
He cited a recent Organisation for Economic Cooperation and Development (OECD) study published in February 2025, which revealed that over 10 trillion US dollars is expected to be invested globally to combat cybercrime.
The same report also projected that robotics and AI would significantly shape future employment in banking and insurance.
Dr Mpango further encouraged banks to explore digital assets and blockchain technologies and called on them to engage the Tanzania Bankers Association (TBA) and Bank of Tanzania (BoT) in establishing a legal framework for participation in this emerging space.
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Commending CRDB Bank for its pioneering role in digital banking, he noted that the institution’s introduction of services like SimBanking and CRDB Wakala have helped to bridge the financial inclusion gap, especially in remote areas.
CRDB Bank Chief Executive Officer, Abdulmajid Nsekela, reflected on the bank’s evolution since 1996, when it operated only 19 branches.
Today, CRDB has expanded to 260 branches nationwide, thanks to sustained investment in digital infrastructure and a strong focus on customer-centric innovation.
According to Nsekela, CRDB has been a trailblazer in Tanzanian banking, introducing 95 per cent of the market’s current solutions including the TemboCard, ATMs and PoS services in 2002, SimBanking in 2011 and CRDB Wakala in 2013.
Beyond technology, the bank has diversified its offerings to meet a wide range of customer needs. In 2016, it became the first Tanzanian bank to offer insurance services, ahead of the Bancassurance framework.
In 2021, it launched Islamic banking through CRDB Al Barakah, reinforcing its inclusivity drive. The bank’s regional footprint is also expanding, with operations now in Burundi and the Democratic Republic of Congo (DRC).
The Danish Ambassador to Tanzania, Jesper Kammersgaard said CRDB has grown into one of the country’s leading commercial banks.
The Ambassador added that looking ahead, DANIDA through its investment fund not only has an interest but also a responsibility to support CRDB in remaining resilient against financial, operational and strategic shocks.