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Financial inclusion comprises services like savings, loan, and insurance provision by
financial institutions to populations which are likely to be financially excluded.
Compare to Kenya 76% or South Africa 89% financial inclusion in Tanzania is only
56% with 44% of adults being financially excluded. Majority of financially excluded
population are farmers and women who are likely living in rural areas. Commercial
banks in Tanzania have been in a quest to address the issue of financial inclusion
through introduction of various alternative delivery channels including mobile
banking, ATMs, internet banking, Mobile Applications and Banking agents to
mention a few.
It’s from this alternative delivery channels of Amana bank where this study
developed its interest to examine contribution it brings to financial inclusion.
Objectives for this study is to examine to what extent, banking agency, internet
banking, MasterCard’s & ATMs and mobile banking contributes to financial
inclusion.
This study utilized qualitative and quantitative research design, where a multivariate
linear programming technique is used to compare the relationship between dependent
variable financial inclusion and independent variables which are Master Cards &
ATMs, mobile banking, internet and Banking agency. Questionnaires are deployed
as well to confirm the findings of quantitative analyses, where Amana bank
customers were asked to express their experience using measured alternative delivery
channels in a Likert scale of one to five.
This study found out that, alternative delivery channels used by Amana bank
especially agency banking has significant contribution to financial inclusion with
coefficient beta of 0.735 followed by mobile banking with 0.434 beta coefficient.
MasterCard by Amana bank boosted quarterly transactions by 0.062. Notably,
however, the least effect was from internet banking where an additional online
account, negatively elevated quarterly transactions by -.197. |
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