Co-operative Bank of Kenya, on Wednesday, May 11, hosted the Bank of Tanzania (BOT) in a study tour to learn the workings of the bank’s Direct Debit System with a view to introducing it to the Tanzanian banking system.
The delegation comprising the senior management team toured Co-op Bank following a recommendation from the Central Bank of Kenya (CBK).
The recommendation was on account of Co-op Bank’s established track record in offering direct debits to both retail and corporate clients. According to Co-op Bank, a Direct Debit is an instruction that a bank customer gives to a bank, authorising another party that the customer wishes to pay to collect various amounts from the customer’s account.
Once a direct debit is put in place, the funds are deducted automatically.
They are a convenient way for customers to pay regular and occasional bills such as utilities and subscriptions, as it ensures that users do not miss important payments as and when they fall due.
Following the tour, Co-op Bank expressed its readiness to support the Bank of Tanzania to embrace Direct Debit.
“Co-op Bank remains open to support the Bank of Tanzania on the direct debits should the need arise,” Co-op Bank stated in its report.