2016 ICT4D Conference

Tanzania is a country of 42 million with a per capita GDP of roughly $1.47 per person per day. Seventy-five percent of the population resides in rural areas; 80% are focused on agriculture. In Microfinance, the low average loan size and expansive geographical footprint with low population concentrations result in proportionately high administrative costs. In an effort to impact and provide financial services to more people (both savings and lending clients), in a financially sustainable manner, a microfinance institution (MFI) must reduce costs and streamline operations.

In 2014, Vision Fund Tanzania (VFT) launched a mobile payment platform that has streamlined operations and provides financial services in otherwise unbanked locations at a reduced cost both to the customer and VFT. This initiative has driven down administrative costs, allowing VFT to effectively target financially unreached groups in rural communities. It has also provided critical business information to the organization; therefore improving and increasing the impact of its efforts. In addition, VFT provides training to clients in the areas of financial literacy and business basics; this has increased the uptake of formal financial products by rural communities.

Overall, the customer experience has been greatly improved. This means no day-long travel to town in unscheduled buses and boda bodas. No more queuing in bank halls in any part of Tanzania, no more standing in long, slow queues and no more loss of daily earnings to VFT customers due to closed businesses. VFT has made financial transactions easy from anywhere in Tanzania at any time. It allows VFT customers in Tanzania to access the information in their accounts without having to leave the comfort of their business or homes, freeing up precious time that can be instead allocated to other economic or family activities.