African countries like Tanzania are now being introduced to the boons of digital finance in the recent times. Digital finance expands basic services and provides better scope for increased financial inclusion of the poor in the economy. Digital finance is not limited to banking. It has the scope to go beyond the financial sector and cover education, healthcare, agriculture etc. if embraced correctly.

Empowering the poor with simple technology

Gone are the days where Tanzania and its other sister nations had to lag behind in the global market. Technology has brought in innovation and a better quality of life. It was just a few years ago, that people had to stand in bank queues to get funds for paying their utility bills. Now, the scenario has changed thanks to the advent of digital finance in Tanzania and other African nations. Payment of bills can be done from the comforts and privacy of any place at the touch of a button.

The widespread adoption of smartphones has led to the surge of digital finance in African nations today. The use of mobile devices has increased drastically over the last 5 years. Apple and Alibaba have contributed positively to this surge as people have increased their financial expectations thanks to the role of these two native technology players in the digital financial market.

Pros of digital finance

Digital finance in Tanzania and other African nations come with a list of advantages. They have been outlined below briefly:

Digital finance increases customer loyalty because it is simple to use
It is a secure and protected platform
Clients receive a 24/7 direct access
It provides a hassle-free user experience

Digital finance has the above four advantages and it should be embraced by a larger section of the low to middle- income group for the development of Tanzania and other nations in Africa.

Improving the experience of the digital client

Now, there is intense competition among banks in Africa to improve the use experience of the digital client. The young generation is now aware and they form the bulk of digital finance users in Tanzania and other countries in Africa. Middle class families are becoming more digitally savvy and there is anticipation that this number is drastically growing. In the future, digital finance will cross boundaries and graduate into all sections of society outside banks.

Money to the people

Africa still lacks education and awareness when it comes to getting money and making the most of it. This is why financial institutions and banks when dealing with low income and unbanked clients combine technological solutions with education. Face-to-face interaction with the client and support are the need of the day to make digital finance a success in the continent today.

Last but not the least; the above goal can be obtained via simple alerts and tips to account holders on their mobile devices. This is required for people belonging to low income groups. The affluent and the middle-class families have the basic education to understand simple transactions. They only need help when transactions are extensive and complex, banking experts say.

Imogen Ribus

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