The peoples bank of Zanzibar (PBZ) is based in Tanzania with the head office in Zanzibar island and various other branches in various cities and towns in Tanzania. The Islamic banking division offers Islamic banking services for Mudarabah savings accounts, Al-wadiah current accounts, financing operations through Murabaha and Ijara. These products are offered in local currency and also in USD, EURO and GBP currencies. The financing facilities make use of repayment accounts where repayment is deducted directly from the customers saving/current account and also check off systems where loan deductions and deposit payments done by the employer is deducted directly from the salary and the collective amount is sent to the bank as remittances.
The bank acts as the main banker for the government employees and corporations within Zanzibar Island.
The bank was originally using a banking system to manage the savings and current accounts. The financing operations were manual. This posed a challenge in the day to day operations for financial processing and recovery. Reconciliation of records and reporting were also problematic due to the manual aspect of the financing and shortcomings posed by their previous system.
With that setup in place, the bank encountered several challenges as follows:
- The financing recoveries were never up to date since the manual update is slow and error prone.
- Errors in updating the financing payments on the manual system from payments done in the computerized savings.
- Schedules for the financing facilities sometimes contained errors from data entry and inconsistent calculations.
- The computerized system for savings and current accounts had frequent downtimes due to lack of support from vendor.
- Customers had difficulty in getting accurate and timely statements for their financing facilities they had with the bank due to the slow manual system.
- Customers could only get assistance on financing queries from their respective branch which was very inconveniencing.
Craft Silicon provides Bankers Realm Islamic core banking solution to PBZ Islamic banking division, which assisted the bank in managing the banking operations as well as computerizing financing management and scheduling for their customers which were initially not available. The solution was deployed and all the operations of the bank were centralized. Bankers Realm Islamic core banking solution provided a BR Gateway module that enabled uploading check off transactions from government and other employer’s repayments. Mobile banking module and internet banking module were also provided that made customer access to the banks services very convenient.