Tanzania: Mobile Banking Deepens Financial Inclusion
Thursday, May 7, 2015
One of the drivers of the country’s gross domestic product (GDP) by 7.0 per cent last year was financial intermediation, speeded up by inclusive financing.
The financial inclusion assists banks to reach many customers and mobilise more deposits, which are a crucial variable for spurring investments through commercial loaning.
For instance, in 2009 population with access to financial services was merely 27 per cent but jumped to 50 per cent in 2013, two years ahead of the targeted deadline.
Under the terms of the Maya [Mexico] Declaration, the Bank of Tanzania (BoT) committed to increase the share of the population with access to financial services from 27 per cent in 2009 to 50 per cent by 2015, now hoping to achieve 75 per cent within the next six years.
The BoT singled out mobile phones as “one of the most critical links for this cusp of phenomenal success” between the unbanked population and financial services.
The early challenges were accepting and blending mobile financial infrastructure with main stream banks as a way of growing banking services in a cost effective manner.
CRDB bank, largest bank in term of balance sheet, was one of the first banks to blend the two through Simbanking platform. The platform incorporated the bank services with those of mobile phone providers.
Mid last year CRDB simplified and improved some of the Simbanking feature seeking to create an easy and less cost accessibility of banking services to customers.