FINANCIAL institutions need to invest more in digital security systems to protect customer funds, the central bank has appealed.

Sauda Msemo, the Bank of Tanzania (BoT) deputy governor, issued this appeal at an event to launch a National Bank of Commerce (NBC) digital payment service, officiated by Prime Minister Kassim Majaliwa.

She said that the rapid growth of digital payment services also comes with increased cyber threats, which implies the need for greater investments in tackling the more common forms of cyber threats in specific transaction systems.

The premier said that widespread use of digital payments will help the government improve digital revenue collection, reduce tax evasion and increase transparency in financial systems.

He said the digital service will help enhance access to credit for farmers, traders and small-scale entrepreneurs through formal bank systems, accelerating domestic trade by enabling fast, secure and affordable transactions.

This will stimulate cash flow and boost private sector growth as a pillar of our economy, he said, urging the Treasury and the BoT to accelerate the adoption of digital payment systems, including increasing point of service machines and cards for transactions.

This will significantly boost local trade by enabling fast, secure and affordable access to goods and services, he said, underlining that financial institutions need to enhance electronic service systems by integrating their platforms.

This will help to facilitate savings, sending and receiving money, promoting financial inclusion, he said, by recognizing the importance of digital financial services in driving economic growth.

Dr Mwigulu Nchemba, the Finance minister, said that the bank’s initiative promotes financial inclusion and expands the digital economy. He assured continued government collaboration with the financial sector to ensure such services reach more citizens efficiently and securely.

He hailed the bank for its support in various social initiatives, including sports, particularly its significant contribution to improving the Tanzania Premier League. “Well done,” he said to wide applause

Theobald Sabi, the bank’s CEO stated that the upgraded app and ‘pay by number’ service seeks to revamp the financial system, as through the new app, customers can open a bank account directly from their mobile phones and start using it immediately without visiting a bank branch. This simplifies financial access and increases financial inclusion, while for salary account holders, this app offers instant loans, ensuring immediate access to funds for urgent needs without delays, he said.

This will accelerate financial transactions, thereby stimulating business activity and higher production, he said, noting also that the service allows customers to invest in various funds such as UTT, government or private sector bonds.

“We take great pride in announcing that this app and the other services we are launching today have been developed by our in-house experts—young Tanzanian professionals,” added.