I was talking to my dad recently and asked him how often he goes to the bank nowadays and how often he used to go to the bank. He said chances are that he might not go to the bank for months these days, thanks to the digital era as opposed to at least once every week in the past.
I also asked him what he thought of the people in the rural areas who have become so proactive with mobile money unlike with traditional banking. The answer is – Financial Technology (Fintech) which has made money accessible and transferable from any part of the world on the touch of a button.
Financial technology (FinTech) is the new applications, processes, products or business models in the financial services industry, composed of one or more complementary financial services and provided as an end-to-end process via the Internet. A new form of technology and innovation that aims to compete with traditional financial methods in the delivery of financial services.
Tanzania today has over 50 licenced banks but only 15 per cent of the population are subscribed to these banks whilst the number of users subscribed to mobile banking is 60.4 million, out of which 19.5 million are active users as of June 2016.
The volume of mobile banking transactions in Tanzania is 4.4 million to date with a value of Sh194.2 million.
This is what Ms Ineke Bussemaker, Managing Director and CEO of National Microfinance Bank (NMB) was reported as saying: “Today, in Tanzania about 15 per cent of the population has a bank account, which is 7.5 million people out of 50 million. However, 60 per cent have a mobile phone and use mobile financial serv