Mobile banking 'would boost financial inclusion' in rural Tanzania
Financial services need to be improved in rural parts of Tanzania, Director of Economic Research and Policy at the country's central bank Dr Joseph Massawe has claimed.Financial services need to be improved in rural parts of Tanzania, Director of Economic Research and Policy at the country's central bank Dr Joseph Massawe has claimed.
He explained large amounts of cash are still being used to make transactions and this is holding back the implementation of some monetary policy, Daily News reports.
Furthermore, 75 per cent of the money circulated does so through an informal system.
However, the introduction of mobile banking is beginning to change this, especially as it can improve access to finance for Tanzanians living in rural locations, Dr Massawe stated.
Mobile phones, as well as greater use of cheques and credit cards, would help to formalise the country's banking network, he suggested.
Currently, transactions collectively worth Sh800 billion (€379 million) are being made using the devices.
Earlier this month, a mobile banking conference was held in Zanzibar to discuss how mobile banking can promote financial inclusion.
It was hosted by the Bank of Tanzania, the Central Bank of Kenya and the Alliance for Financial Inclusion and was the largest gathering of its kind, the Daily News reported.