Co-op Bank Hosts Bank of Tanzania to study how direct debit system works

The Co-operative Bank of Kenya on Wednesday May 11 hosted the Bank of Tanzania (BOT) on a study tour to learn how the bank’s direct debit scheme works with a view to introducing it into the banking system Tanzanian.

The delegation including the management team visited the Co-op Bank following a recommendation from the Central Bank of Kenya (CBK).

The recommendation was based on Co-op Bank’s established track record of offering direct debits to individuals and businesses.

According to Co-op Bank, a direct debit is an instruction that a bank customer gives to a bank, authorizing another party that the customer wishes to pay to collect various amounts from the customer’s account.

Once a direct debit is set up, the funds are withdrawn automatically.

They are a convenient way for customers to pay regular and occasional bills such as utilities and subscriptions, as they ensure users don’t miss important payments as they come due.

Following the tour, Co-op Bank expressed its readiness to assist the Bank of Tanzania in adopting Direct Debit.

“Co-op Bank remains open to support the Bank of Tanzania on direct debits when needed,” Co-op Bank said in its report.