According to the Financial Sector Deepening Trust of Tanzania, the term ‘Digital Finance’ is defined as a tool, which enables an individual to make use of electronic and digital financial services via various bank branches and ATM counters across the country. Digital Finance usually involves utilizing alternative delivery channels, which are controlled by the mobile technology through mobile money as well as agency banking models.
Mission of Digital Finance
The primary objective of Digital Finance is to project various market constraints by working in joint collaboration with the policy regulators. It helps in creating an environment, which suits both the mobile financial services and agency bankers in Tanzania.
The Financial Sector Deepening Trust of Tanzania have also partnered with some of the leading financial institutions and mobile network operators in Tanzania to enhance the cash-outlets thereby enabling the local resident of Tanzania to access the financial services. In order to cater to the needs and requirements of the rural households, The Financial Sector Deepening Trust of Tanzania is working with financial service providers to provide the necessary assistance and support to the rural banks of Tanzania.
- A new project named School Management System or in short, SMS was launched to provide education to the students who belong to the weaker sections of the society. This is an efficient tool, which enables the students to keep a track of their academic performance during the course of their study. The parents too will be able to monitor the performance of their children via this tool. This tool is also very helpful in executing payment of school fees, managing accounts and timely submission of reports.
- Another project named Digital Saving Group is one of the best tools launched by the Financial Sector Deepening Trust. It is one of the few tools, which is included in the financial inclusion providing support and assistance to people in saving money. This efficient tool helps an individual to get access to both the financial products and services.
What is the role of Financial Sector Deepening Trust in Digital Finance?
The Financial Sector Deepening Trust of Tanzania has taken initiatives to assist the weaker sections of the society such as men and women who belong to the rural households of Tanzania. Most of the people who are residing in the rural areas do not have efficientfinancial providers. Payment of school fees cannot be executed in the absence of financial providers.As a result, those people are required to travel to longer distances to visit a bank and pay the school fees. Traveling expenses are very high in such circumstances.
The primary objective of the above-mentioned project is to simplify the payment of school fees, student registration and recording as well. This digitization will also enable easy access to both financial products and services. This tool is also a source of inspiration for various other educational institutions to execute school loans and other activities.