One of the most important factors that commercial bank must possess to be successful in Dar es Salaam is branch network. Branches are the distribution channels for the bank services and a well spread network of branches provide the bank with ability to reach the mass population of the Dar es Salaam city. As important as the number of branches is the location of these branches. Those banks that have managed to identify the right location and managed to put a branch on those locations have proved to be taking the most advantage of the market than those with fewer non-strategically placed branches. As an example, branches located at Mlimani City, Central Business District (Posta) and Kariakoo have proven to get the most customers and this is evidenced by the long queues seen on those areas throughout the business hours. NBC, CRDB and NMB
As important as the branch network is as a success factor, so is the ATM distribution. ATM provides 24 hour access to your funds, this is the flexibility customer are looking for to meeting their pressing economic and social needs and banks have to provide this to be able to compete with new products like mobile fund transfer services(M-Pesa, Tigo Pesa e.t.c.) In Tanzania, the same banks that enjoy a wide branch network (NBC, NMB and CRDB) are the same having the widest success as a result enjoy the large market that seeks a bank that can give then 24 hour access to their funds. These banks have been enjoy huge commissions from ATM use charges (Withdrawal fees, Statement charges and other transactions charges). To insist on the importance of ATM as a key success factor, smaller banks that do not have a muscle to rollout huge ATM outlets have join forces to form UMOJA Switch that enables them to share an ATM network so they can also take advantage of the opportunity.
Another just discovered key...