Selcom Microfinance Bank

What Selcom Microfinance Bank does

Selcom Microfinance Bank Tanzania Limited (SMFB) is a privately held microfinance bank founded in 2007 and headquartered in Dar es Salaam. It operates under the Selcom group umbrella and serves unbanked, underbanked, and SME segments in Tanzania through a multi-channel model combining 8 physical branches, a Selcom Huduma Wakala agency banking network, the Selcom QwikChap POS acquiring device (integrated with 60+ billers), and the Selcom Pesa digital platform. Its stated core purpose is to power the prosperity of three million families by 2027, signaling an explicit financial inclusion mandate.

The product portfolio spans transactional and savings accounts (Rahisi, Mikakati, Baraka Junior, Nufaika, Kikundi), term deposits, money transfer services, trade finance guarantees, bancassurance distribution, and a layered credit suite (Jisoti instant digital loans up to TZS 2,000,000, micro loans up to TZS 35,000,000, agro loans up to TZS 50,000,000, and SME loans from TZS 35,000,001). Underlying technology centers on a digital banking platform with mobile app delivery, biometric identity verification through NIDA integration, and POS-based merchant acquiring infrastructure. The bank is Basel II/III compliant and publishes audited annual statements alongside quarterly disclosures.

Revenue is generated through a mix of interest income on loans, account maintenance and transaction fees (e.g., TZS 2,000 flat fee for interbank national transfers), guarantee issuance fees, bancassurance commissions, FX spreads (USD, EUR, KES), and merchant acquiring commissions. Customer segments span retail individuals, youth, SMEs, informal savings groups, farmers, and government entities — a deliberately diversified base that reduces single-customer dependency and aligns with the bank's financial inclusion thesis.

Name

Selcom Microfinance Bank

Legal name

Selcom Microfinance Bank Tanzania Limited

Website

https://smfb.co.tz

Company type

Private

Founded year

2007

Operating status

Operating

Headcount range

251–500 employees

Short description

Selcom Microfinance Bank Tanzania is a digital-first microfinance bank serving retail customers, SMEs, farmers, and informal savings groups across Tanzania through 8 branches, a Selcom Pesa mobile platform, an agent network, and a POS acquiring network under the Selcom group.

Ownership category

akta.pro rank

Product category

Microfinance Banking

NAICS

Commercial Banking (52211)

SIC

State Commercial Banks (6022)

akta.pro primary industry

Microloans & Working Capital Loans (FSAKAGAA)

akta.pro secondary industries

Agricultural & Rural Microfinance (FSAKAGAG), Small Business Banking (Microbusiness/Sole Proprietor) (FSABAAAI), SME Deposits & Business Accounts (Operating, Savings, CDs) (FSABABAC)

Keywords

• Microfinance banking
• Digital banking
• Mobile lending
• Merchant acquiring
• Financial inclusion

Headquarters

HQ city

Dar Es Salaam

HQ country

Tanzania

HQ region

Africa

Offices9 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales

Revenue model

1. Interest Income on Loans: The bank earns interest income from various loan products including Jisoti loans, micro loans, agro loans, and SME loans. Interest rates vary by product type and loan amount.
2. Account Fees and Maintenance Charges: Monthly maintenance fees, minimum balance requirements, and various account service charges across different account types (Rahisi, Mikakati, Nufaika, Kikundi).
3. Transaction and Transfer Fees: Fees charged for money transfers including national transfers (TZS 2,000 flat fee per transfer), international transfers via SWIFT, and internal SMFB account transfers which are free.
4. Trade Finance Services: Issuance fees for guarantees including Bid/Tender Guarantees (0.5% of guaranteed amount, minimum 20,000 TZS) and Performance Guarantees (0.5% of guaranteed amount, minimum 50,000 TZS).
5. Bancassurance: Commission income from selling insurance products including fire and allied perils, domestic package, motor insurance, health insurance, life insurance, liability policies, engineering insurance, and pecuniary insurance.
6. Foreign Exchange Services: Revenue from foreign exchange transactions including USD, EUR, and KES trading with buy/sell spreads offered to individuals and institutions.
7. Merchant Acquiring: POS device deployment generates commission revenue from merchant transactions including card payments and mobile payments.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels3 records

Core offering

Selcom Microfinance Bank is a Tanzanian microfinance bank that delivers retail banking, savings, and credit products through the Selcom Pesa digital platform, an 8-branch physical network, the Selcom Huduma Wakala agency banking network, and Selcom QwikChap POS merchant acquiring devices. It serves individuals, SMEs, farmers, and informal savings groups with deposit accounts, micro and SME loans, money transfers, trade finance guarantees, and bancassurance.

Product overview

Selcom Microfinance Bank operates as a digital-first microfinance institution in Tanzania offering a comprehensive suite of financial products and services. The core offering is Selcom Pesa, a digital financial platform that serves as the central hub for account management and transactions. The product portfolio includes deposit accounts (Rahisi, Mikakati, Baraka Junior, Nufaika, Kikundi, and Term Deposits), money transfer services (IMT), trade finance (Guarantees), bancassurance products, and a full range of credit products (Jisoti Loans, Micro Loans, Agro Loans, and SME Loans). The bank also offers merchant acquiring through the Selcom QwikChap POS device. The ecosystem integrates branch banking, mobile banking via Selcom Pesa app, and Selcom Huduma Wakala agent network for inclusive financial service delivery across Tanzania.

Differentiator

Problem solved

Functional benefit

Brands

• Selcom Pesa: Digital financial platform offering a comprehensive suite of services for making financial transactions more accessible, affordable, and secure for users across Tanzania. Features include mobile banking, funds transfer, utility payments, and more.

Products and services

• Selcom Pesa Digital Platform Digital financial platform offering account management, mobile banking, loans (Jisoti), transfers, and payments with zero opening balance; for individual and small business users across Tanzania.
• Rahisi Account Basic transactional account for individuals and groups with ATM card, mobile banking, funds transfer, utility payments, balance checks, mini statements, airtime top-ups, government payments, and CICO via Selcom Huduma Wakala. Minimum opening balance TZS 10,000.
• Mikakati Account Target savings plan for individuals, groups, or businesses with up to 5% interest, one free withdrawal per month, no monthly service fee, and a customizable target saving plan. Minimum opening balance TZS 20,000 (or 20 USD/EUR for foreign accounts).
• Baraka Junior Account Children's savings account for ages 0-18 with no opening balance, 4% interest, free over-the-counter withdrawals, no monthly service fee, and one free bank statement per month.
• Nufaika Transactional Account Business transactional account for SMEs, clubs, and associations/NGOs offering bank-to-bank, account-to-account, and national and international transfers in TZS or USD, with lower monthly maintenance fees and free SMFB-to-SMFB transfers. Minimum balance TZS 50,000 or USD 50.
• Kikundi Account Group savings account for VSLAs, VICOBA, SACCOS, and informal loan associations, with up to 4% monthly interest, instant activation at branches, free deposits, group withdrawal ledger book, and remote member transactions. Minimum balance TZS 10,000.
• Term Deposit Fixed-period deposit with interest up to 14%, daily interest calculation, monthly or maturity crediting, automatic renewals, no opening or closure fees, and usable as loan collateral.
• Jisoti Loan Fast digital loan disbursed through Selcom Pesa for pre-approved customers based on credit score and platform usage, up to TZS 2,000,000 with 7- or 30-day tenure, fully digital with no paperwork and no early repayment charges.
• Micro Loans Small-business micro loans ranging from TZS 500,000 to TZS 35,000,000 for individuals with minimal documentation, no audited financials, and no prior bank relationship required; faster processing for repeat clients.
• Agro Loans Agricultural loans for individual farmers from TZS 500,000 to TZS 50,000,000 for inputs, labor, equipment, and farm investments, processed within 3 days with flexible repayment plans.
• SME Loans Business loans starting from TZS 35,000,001 with no defined upper limit, sized to business strength and debt capacity, with flexible collateral including household goods, business equipment, stock, vehicles, and real estate.
• National and International Money Transfers Money transfer services at all branches with free instant SMFB-to-SMFB transfers, a TZS 2,000 flat fee for national transfers to other banks, and higher-fee USD/SWIFT international transfers.
• Trade Finance Guarantees Irrevocable guarantees to buyers/contractors including Bid/Tender Guarantee (2-5% security) and Performance Guarantee (2-10% security), with issuing fees of 0.5% of guaranteed amount (minimums of TZS 20,000 and TZS 50,000 respectively).
• Bancassurance Distribution of insurance products including Fire and Allied Perils, Domestic Package, Burglary/Theft, Motor Insurance, Medical/Health Insurance, Life Insurance, Liability Policies, Engineering Insurance, and Pecuniary Insurance.
• Selcom QwikChap POS Point-of-sale device deployed to merchants that accepts card payments, mobile payments (Lipa kwa Simu), agency banking, and government payments, and provides access to over 60 billers from a single device.

Quantifiable outcome

• Loans processed within 3 days for agro loans
• +3 more outcomes

Segments6 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Scale indicators3 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• TPB Bank Tanzania (TPB Bank Plc): A Tanzanian commercial bank offering savings, microfinance, and SME lending with a wide rural footprint via postal outlets. TPB and SMFB target overlapping unbanked and small-business segments through comparable low-balance account and group-savings products.
• BRAC Tanzania (BRAC Microfinance): BRAC operates a large microfinance program in Tanzania focused on group lending to women entrepreneurs and smallholders, in close competition with SMFB's Kisos, Agro, and SME offerings for the same informal and rural customer base.
• FINCA Microfinance Bank Tanzania (FINCA Tanzania): A licensed microfinance institution in Tanzania providing group and individual micro-credit, savings, and education loans. FINCA directly competes with SMFB on micro loans, savings groups (VSLA), and low-balance deposit accounts targeting informal customers.
• Opportunity Bank Tanzania (OBT): A Tanzanian microfinance bank offering savings, micro loans, and SME banking to underserved customers. OBT is a direct peer in low-balance deposit accounts, microcredit underwriting, and digital/mobile money integrations.
• Equity Bank Tanzania (Equity for Tanzania): A commercial bank with a microfinance-led operating model similar to SMFB, focusing on financial inclusion, low-balance accounts, and SME lending. Equity Group pioneered the agent banking and mobile-credit model that Selcom Pesa and the Wakala network echo.

Broad incumbents

• Letshego Africa (Letshego Holdings): Letshego is a pan-African inclusive finance group with multi-country micro-lending and salary-backed loan operations. While broader in geography than SMFB, it is a meaningful peer for product design, distribution-light lending, and financial inclusion scoring.
• CRDB Bank Tanzania: Tanzania's largest commercial bank with an extensive branch and agent network. CRDB is a broad incumbent that competes with SMFB across SME banking, microfinance, and digital channels but operates at substantially larger scale across all segments.
• NMB Bank Tanzania: National Microfinance Corporation / NMB Bank is Tanzania's biggest bank by customers and a direct counterpart in microfinance, savings groups, and SME lending; it competes head-on with SMFB's deposit-taking and small-business credit franchise while operating much larger balance-sheet scale.

Others

• Vodacom Tanzania M-Pesa (Vodacom / Safaricom M-Pesa): Tanzania's dominant mobile money platform is not a deposit-taker but competes fiercely for payments, transfers, and increasingly credit (overdrafts, savings) that overlap with SMFB's Selcom Pesa and Wakala services, making it the closest non-bank benchmark for digital financial services reach.

Emerging players

• Advans Banque (Advans Group): An emerging African microfinance bank network operating in multiple countries, including neighboring East African markets. Advans is an emerging player that mirrors SMFB's microcredit-plus-deposit model and target customer base of small entrepreneurs.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/selcom_mfb
• Facebookfacebook.com/61551888740734

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Selcom Microfinance Bank